Beyond the basics: Understanding XRechnung, ZUGFeRD, and the “dialects” of European e-invoicing

Summary

• Although European e-invoicing is based on the EN 16931 standard, it is implemented through different local and cross-border "dialects," or profiles.

• This article focuses on three key profiles, each of which is tailored to specific needs:

• XRechnung, Germany's pure XML format; ZUGFeRD/Factur-X, a "smart hybrid" format (PDF with embedded XML), which is primarily used in Germany and France; andPeppol BIS Billing 3.0. The latter is a single, universal profile designed for cross-border trade and serves as the default standard across the pan-European Peppol network.

• All formats are based on one of two core technical syntaxes: UBL 2.1 or UN/CEFACT CII.

• The appropriate e-invoicing format for a business depends on its market requirements, geographical location, and customer base (B2G or B2B).

In one of our previous posts, we explored the EN 16931 e-invoicing standard - the “common language” of digital business in Europe. But just as people in different countries speak different dialects of the same language, businesses across Europe use different “profiles” of e-invoicing to get the job done.

Whether you are navigating the B2B mandates in Germany, shipping goods to France, or connecting to public authorities via Peppol, understanding these specific formats is the key to a seamless digital supply chain.

One standard, many dialects

If EN 16931 is the dictionary that defines the rules and business terms for every e-invoice, then formats like XRechnung, ZUGFeRD, andPeppol BIS are the specific ways those words are organized and delivered.

XRechnung: The “official” German pure-XML

XRechnung is Germany’s national profile of the European standard. It is a "pure XML" format, meaning it consists entirely of structured code meant for machines, not a visual document for humans.

• Best for: Businesses working with the German public sector (business-to-government, or B2G, transactions). XRechnung is mandatory for almost all federal, state, and municipal invoices.

• The experience: High-speed automation. Because it follows strict validation rules, it is optimized for direct system-to-system exchange between large organizations and government portals like ZRE or OZG-RE.

• Geography: Primarily Germany.

ZUGFeRD / Factur-X: The "smart" hybrid

ZUGFeRD (Germany) and Factur-X (France) are technically identical twins. They use a hybrid approach: you receive a familiar PDF file that you can read and print, but “inside” that PDF is an embedded XML file that a computer can read instantly.

ZUGFeRD / Factur-X profiles: A spectrum of data detail

To accommodate businesses with different technical capabilities and automation needs, the ZUGFeRD/Factur-X standards offer a ladder of profiles. These profiles dictate the depth of structured data embedded in the PDF, allowing businesses to scale their automation over time:

• MINIMUM: Includes only basic header and footer details. Note: This does not meet the full EN 16931 standard and may not be legally recognized as a valid VAT invoice in countries like Germany.

• BASIC WL (Basic Without Line items): Adds more comprehensive header/footer data but excludes line items. Like the Minimum profile, it is not EN 16931-compliant and may be legally insufficient in certain jurisdictions.

• BASIC: Captures fundamental data, including specific line-item details. While useful for internal processing, it remains a subset of the European norm rather than a full implementation.

• EN 16931 (formerly "Comfort"): The essential profile for most businesses. It fully implements the EN 16931 semantic model and is the standard requirement for automated processing and public procurement across Europe.

• EXTENDED: Designed for complex business logic, this profile builds on the EN 16931 foundation to include extra data like multiple delivery dates or specialized payment terms.

These progressive profiles ensure that companies of any size can select the appropriate format to ease their transition, while still providing a clear path to full European compliance.

• Best for: SMEs and businesses in a mixed B2G/B2B (business-to-business) environment. It allows you to transition to e-invoicing without changing your current habit of emailing or viewing PDFs.

• The experience: “PDF as usual, but secretly smart.” You can view the invoice manually, while your accounting software automatically extracts the data from the background.

• Geography: Dominant in Germany and France, and endorsed for cross-border trade between these two nations and Switzerland.

Peppol BIS Billing 3.0: The pan-European connector

Peppol BIS is another profile of EN 16931 designed for the international Peppol network. While XRechnung is tailored to Germany, BIS 3.0 is designed to be acceptable in almost any European country.

• Best for: Cross-border trade and businesses operating in countries like Belgium, the Netherlands, or the Nordics, where Peppol is the default standard for both B2B and B2G.

• The experience: A single “universal” profile. Instead of managing dozens of local formats, you use BIS 3.0 to reach public and private buyers across multiple borders through the secure Peppol transport network.

Beyond profiles: Other key European and global formats

While EN 16931 profiles are the primary focus for pan-European B2G and emerging B2B compliance, it is helpful to place XRechnung and ZUGFeRD/Factur-X in the wider context of other major national and global e-invoicing standards.

National context

Some of Europe’s most mature e-invoicing systems use different formats for their mandates:

• FatturaPA (Italy): Italy uses its own FatturaPA XML format via the state hub SdI for all B2G, B2B, and B2C (business-to-consumer) transactions. While highly automated, its original design pre-dates the European standard, making it a key example of a country-specific XML schema with a similar role to XRechnung, but with a different technical base.

• FacturaE (Spain): Its continued use to date demonstrates that not all countries have fully converged on EN 16931 syntaxes for their legacy public procurement setups, highlighting the patchwork of standards businesses must navigate, even as future B2B mandates may reshape the Spanish e-invoicing landscape.

• Nordic formats (EHF, Svefaktura, Finvoice): Historically, countries like Norway, Sweden, and Finland used their own formats. While these are often UBL-based, their gradual migration toward Peppol BIS Billing 3.0 for new traffic is a clear example of why Peppol BIS is positioned as the standard path for pan-European growth.

Global / cross-industry standards

• UN/EDIFACT / EDI: Classic Electronic Data Interchange (EDI) formats, like UN/EDIFACT, remain heavily used in high-volume supply chains (e.g., retail and automotive) worldwide. These are not EN-16931-based, but they are the original cross-industry standard, serving as the historical reference point that modern XML e-invoices (UBL, CII, etc.) were introduced to succeed.

The technical “engine”: UBL and UN/CEFACT CII

Under the hood of these formats are two main technical syntaxes (coding styles): UBL 2.1 and UN/CEFACT CII.

Software providers and large enterprises often choose “plain” UBL or CII when they aren't forced to use a specific national profile, as these are generic, global syntaxes supported by almost all modern ERP systems.

Which dialect should you speak?

Choosing the right format depends on where you are doing business and who your customers are:

• Invoicing a German Authority? Use XRechnung.

• Running an SME in France or Germany? Factur-X / ZUGFeRD is likely your best friend for a smooth digital shift.

• Scaling across Europe (e.g., Belgium or the Netherlands)? Peppol BIS 3.0 is the standard path for growth.

Despite their differences, all these formats remain aligned with EN 16931. This ensures that regardless of the “dialect” used, your invoices remain interoperable, legally compliant, and ready for the future of digital finance.

Ready to simplify your EN 16931 compliance? Don't let technical profiles complicate your workflow. Discover how Banqup bridges the gap between XRechnung, Factur-X, and Peppol for seamless, automated billing across all of Europe.

Explore our compliant solutions and discover a platform that fully supports all major European standards, keeping you compliant across B2G and B2B mandates. Stay ahead of shifting regulations - follow us on LinkedIn for compliance updates or connect with our local team to discuss your specific cross-border or national e-invoicing needs.