Since January 1, 2025, the e-invoicing mandate in the B2B sector has been in effect in Germany. Companies must be able to receive electronic invoices and increasingly also send them. No wonder that many self-employed individuals, small business owners and car dealers are looking for a free e-invoicing software. But how good are free solutions really? And where do they reach their limits?
In this comprehensive comparison, we show you the best free tools and templates for e-invoicing, explain the difference from professional solutions and reveal when switching to a specialized e-invoicing software is worthwhile. We also address the special requirements in the automotive trade – from margin taxation to DATEV export.
Why You Need an E-Invoicing Solution Now
The e-invoicing mandate affects all companies in Germany that issue invoices to other companies (B2B). The Growth Opportunities Act (Wachstumschancengesetz) has set the roadmap clearly, and the transitional periods are expiring step by step:
- From January 1, 2025: Every company must be able to receive e-invoices
- From January 1, 2027: Companies with more than 800,000 EUR in prior-year revenue must send e-invoices
- From January 1, 2028: All companies must send e-invoices in the B2B sector
Important: A PDF invoice sent by email is not an e-invoice within the meaning of the law. Only structured formats such as ZUGFeRD or XRechnung meet the legal requirements under EN 16931. This means: invoice data must be available in a machine-readable, standardized XML format.
The pressure to act is real – and the search for a free e-invoicing software is perfectly understandable. Especially small businesses and sole proprietors want to meet the new legal requirements without incurring high software costs. Let us therefore take a close look at which free options actually exist and what you can realistically expect.
Free E-Invoicing Tools at a Glance
There are several free tools and platforms with which you can create or at least receive e-invoices. The following overview presents the most important categories and assesses their practical suitability.
1. E-Invoicing Portal of the Federal Printing Office (ZRE/OZG-RE)
The portal operated by the federal government is primarily aimed at suppliers to public authorities. Via the Central Invoice Receipt Portal (ZRE) and the OZG-compliant invoice receipt platform (OZG-RE), invoices can be submitted in XRechnung format. Use is free and the platform is technically mature. However, it is limited to invoices to federal authorities and participating state authorities. It is simply not intended for general B2B transactions between companies. Those who exclusively supply public clients will nonetheless find a solid free solution here.
2. ZUGFeRD Community / Mustang Project
The open-source library Mustang enables developers to programmatically create ZUGFeRD-compliant invoices. The project is actively maintained and supports current ZUGFeRD versions as well as XRechnung. For technically proficient users or companies with their own IT department, this is a powerful option – however, it is not a ready-made software with a user interface. You need programming skills in Java to integrate the library into your existing systems. For the average user without a developer background, Mustang is therefore not a practicable solution.
3. ELSTER (Mein ELSTER)
Via the ELSTER portal, companies can electronically submit VAT returns and other tax filings. However, ELSTER itself does not create e-invoices – it is exclusively for communication with the tax office. Nevertheless, it is frequently mentioned in connection with the e-invoicing mandate, as tax filings are prospectively to be more closely linked with e-invoice data through a planned reporting system. Currently, however, ELSTER does not help you with e-invoice creation.
4. Free Online Generators and Viewers
Various online tools allow the creation or validation of individual e-invoices directly in the browser. The Quba Viewer, for example, is an excellent tool for visually displaying received XRechnung and ZUGFeRD files and checking them for formal correctness. For creation, there are simple web forms that generate XML files in XRechnung format after entering invoice data. However, the functionality is limited to pure file creation: there is no storage, no customer management and no invoice history. Every invoice starts from scratch.
5. LibreOffice with ZUGFeRD Extension
For the free office suite LibreOffice, community extensions exist that can generate ZUGFeRD-compliant PDFs. Installation and configuration require a certain level of technical understanding, and the extensions are not always regularly updated. There is also the risk that after a LibreOffice update, the extension may no longer be compatible. As a pragmatic transitional solution for a few invoices, this approach can work. As a permanent solution for daily business operations, however, it is only conditionally recommended.
6. Free Tiers of Commercial Providers
Some commercial invoicing software products offer free tiers with limited functionality. Typical restrictions include: a maximum of 3–5 invoices per month, no DATEV export, no telephone support, limited format selection and often a watermark or advertising banner on the documents. For the absolute beginner and initial experiments with e-invoicing, these tiers are usable, but they are insufficient for ongoing business operations with regular invoice volume.
Comparison Table: Free E-Invoicing Tools
The following table gives you a quick overview of the key differences between the available free solutions:
| Tool / Platform | Format | ZUGFeRD | XRechnung | DATEV Export | Limitation | Suitable for |
|---|---|---|---|---|---|---|
| ZRE / Federal Printing Office | XRechnung | ✗ | ✓ | ✗ | Federal authorities only | Public contracts |
| Mustang (open source) | ZUGFeRD / XRechnung | ✓ | ✓ | ✗ | Programming skills required | Developers, IT teams |
| Online generators | XRechnung / ZUGFeRD | Partially | ✓ | ✗ | Individual invoices | Occasional use |
| LibreOffice + extension | ZUGFeRD | ✓ | ✗ | ✗ | Manual setup | Tech-savvy users |
| Free tiers (various providers) | Varies | Partially | Partially | Rarely | 3–5 invoices/month | Micro-businesses |
| AutoPult (14-day free trial) | ZUGFeRD / XRechnung | ✓ | ✓ | ✓ | Full functionality | Car dealers, SMEs |
What Free E-Invoicing Tools Can Do – and What They Cannot
Before deciding on a free solution, you should realistically assess the typical strengths and weaknesses. The differences between free tools and professional software are in some cases considerable.
What Free Tools Can Do
- Create individual e-invoices in XRechnung or ZUGFeRD format
- Fill in basic mandatory fields according to EN 16931
- Generate XML files and validate them against the specification
- Create simple invoices without complex line items or special cases
- Visually display and check received e-invoices
- Provide an initial introduction to the topic of e-invoicing
What Free Tools Typically Cannot Do
- Automation: No batch invoices, no automatic sending by email, no recurring invoices for maintenance contracts or leasing installments
- Accounting integration: No DATEV export, no interface to the tax advisor, no automatic account assignment
- GoBD compliance: No audit-proof archiving, no change log, no procedural documentation
- Customer management: No master data maintenance, no invoice history per customer, no payment tracking
- Industry specifics: No special cases such as margin taxation, vehicle data management, intra-Community supplies or warranty processing
- Support and updates: No or only limited customer service for problems, no guarantee of timely updates for legislative changes
- Multi-user capability: No access for multiple employees with different permissions
Free vs. Professional: The Honest Comparison
The decision between a free and a professional e-invoicing solution depends on your business volume, your industry and your specific requirements. Here is a detailed comparison of the most important criteria:
Feature Scope
Free tools cover the absolute basic functionality: create a single invoice, export as XML or ZUGFeRD PDF, done. Professional software additionally offers the complete document workflow: quote creation, order confirmations, delivery notes, invoices, payment reminders, credit notes, partial invoices and progress invoices. All documents are linked to each other and reference one another. Especially in ongoing business operations, this saves enormous amounts of time and prevents errors from duplicate data entry.
Legal Certainty and Compliance
A professional invoicing software ensures that your invoices are archived in a GoBD-compliant manner. This means: immutable storage, gap-free numbering, complete mandatory information and correct VAT calculation. Additionally, procedural documentation is provided that can be presented during a tax audit. Free tools leave this entire responsibility to you – and the tax office shows no leniency for formal errors.
Time Investment and Hidden Costs
What appears free at first glance often costs significantly more time in practice than expected. Manual data entry for every single invoice, missing templates, no customer database, no automatic invoice number sequence – with 20 or more invoices per month, the additional effort quickly adds up to several hours. Factor in your own hourly rate, and the supposedly free solution is often the more expensive option. Professional software often pays for itself in the very first month.
Scalability and Future-Proofing
Free solutions work passably for a few invoices per month. As soon as your company grows – more customers, more employees, more locations – you inevitably hit limits: lacking multi-user capability, no API integration with your other systems, no central document management. The later switch to a professional solution then frequently means that all historical data must be manually transferred or completely re-entered. Those who choose the right system from the start avoid this costly media break.
When Do You Definitely Need Professional E-Invoicing Software?
The rule of thumb is simple: as soon as at least two of the following points apply to you, switching to a professional solution virtually always pays off:
- You create more than 10 invoices per month
- You need a DATEV export for your tax advisor
- You must archive invoices in a GoBD-compliant and audit-proof manner
- You work with industry-specific requirements (e.g. margin taxation in the car trade)
- You want to create quotes, order confirmations, invoices and payment reminders from one system
- You need reliable support for technical or legal questions
- Multiple employees should work with the system simultaneously
- You want to track incoming payments and automatically send reminders for outstanding items
Tip: Many professional providers offer free trial periods. This allows you to test the full range of features without obligation before committing – risk-free and without a credit card.
Special Requirements in the Automotive Trade
For car dealers, special rules and industry-specific requirements apply that are not covered by any free e-invoicing solution. If you operate in the automotive trade – whether as an independent dealer, multi-brand dealer or authorized workshop – you should pay particular attention to the following points when choosing your e-invoicing solution.
Margin Taxation Under § 25a UStG
When buying and selling used vehicles, margin taxation is applied in most cases. VAT is calculated not on the full selling price but only on the trading margin (difference between purchase and sale price). An e-invoice must correctly reflect this: the tax amount must not be separately disclosed, and the note “Margin taxation under § 25a UStG, VAT is not separately disclosed” is mandatory. Free tools simply do not know this special regulation and offer neither the correct tax calculation nor the required note text.
DATEV Export and Tax Advisor Integration
In the car trade, numerous accounting transactions arise: vehicle purchases from private individuals and dealers, trade-ins, warranty processing, commissions to brokers, registration costs and workshop invoices. A DATEV-compatible export ensures that all these transactions are automatically correctly assigned and transferred to the tax advisor. This saves the tax advisor hours of manual entry work – and you real money on the monthly accounting bill. Free solutions virtually never offer this interface.
GoBD-Compliant Archiving
The principles for the proper management and storage of books (GoBD) require that invoices and other tax-relevant documents are archived immutably, completely and traceably. The statutory retention period is 10 years. Simply saving an XML file on the desktop or in a regular file folder does not meet these requirements. Professional software handles audit-proof storage automatically and seamlessly documents every access and every change.
Vehicle-Specific Data on the Invoice
In the automotive trade, invoices regularly need to contain additional vehicle-related information: Vehicle Identification Number (VIN), date of first registration, mileage at handover, equipment features and possibly the key numbers. These fields cannot be stored as structured data in free online generators nor automatically transferred from a vehicle database. Every invoice requires the complete manual entry of all vehicle data – a major source of errors.
AutoPult: 14-Day Free Trial – Full Functionality
If you want to try free e-invoicing software without sacrificing professional features, AutoPult is the ideal solution. Our 14-day free trial gives you unrestricted access to all features – with no hidden costs and no credit card required.
What Sets AutoPult Apart from Free Tools
- ZUGFeRD and XRechnung: Both formats fully supported, including automatic validation against EN 16931 before sending
- Margin taxation: Correct calculation and disclosure under § 25a UStG with all legally required note texts
- DATEV export: Seamless transfer of all posting data to your tax advisor in DATEV-compatible format
- GoBD-compliant archiving: Audit-proof storage of all invoices, quotes and receipts with seamless documentation
- Vehicle management: VIN, equipment, photos, standing times and vehicle history directly linked in the system
- End-to-end workflow: From the quote through the purchase contract to the e-invoice – everything in one system without media breaks
- Automation: Recurring invoices, automatic payment reminders and dunning notices with individually configurable deadlines
- Personal support: German-speaking customer service that knows your industry and helps quickly with questions
Unlike permanently free tools with severe restrictions, AutoPult gives you 14 days of full performance – including all industry features. This way you can test at your leisure whether the software suits your business and make an informed decision. Experience shows: for most car dealers, the software saves significantly more time and money than it costs.
Start your 14-day free trial now »
Frequently Asked Questions About Free E-Invoicing
Is e-invoicing software really completely free?
There are indeed free tools, but with considerable limitations. Open-source libraries like Mustang require programming skills in Java. Online generators are only suitable for individual invoices without storage or customer management. Free tiers of commercial providers limit the number of invoices to 3–5 per month and offer neither DATEV export nor telephone support. For ongoing business operations with regular invoice volume, these solutions are typically insufficient.
Can I create ZUGFeRD invoices with free tools?
Yes, some free options support the ZUGFeRD format. The open-source library Mustang and certain LibreOffice extensions can generate ZUGFeRD-compliant PDFs with embedded XML. However, with these solutions you must ensure yourself that all mandatory fields are correctly filled and the result complies with the EN 16931 standard. A comprehensive format comparison can be found in our ZUGFeRD vs. XRechnung guide.
Is a free tool sufficient for the 2025 e-invoicing mandate?
For merely receiving e-invoices, a free viewer like the Quba Viewer may suffice – allowing you to read and check incoming e-invoices. For sending standard-compliant e-invoices, most companies will need a professional solution – at the latest from 2027 or 2028 when the sending obligation kicks in depending on company size. All details on the timeline and exceptions are covered in our article on the e-invoicing mandate.
What formats must my e-invoice have?
The law requires a structured electronic format according to the European standard EN 16931. In practice, this means either XRechnung (pure XML format, preferred for public clients) or ZUGFeRD from version 2.0 (hybrid format: human-readable PDF with machine-readable XML). Other formats such as plain PDF files, Word documents or image files expressly do not meet the legal requirements.
What happens if my e-invoice is faulty?
Faulty e-invoices can be rejected by the recipient. In the worst case, the invoice recipient loses their input tax deduction, which significantly strains your business relationship. Additionally, the tax office can object to faulty invoices during a tax audit and demand corrections. Professional software minimizes this risk through automatic validation before sending and ensures that all mandatory information is complete and correct.
Are there free e-invoicing solutions specifically for car dealers?
No, free tools that cover industry-specific requirements such as margin taxation under § 25a UStG, vehicle data management with VIN and automotive-trade-compliant invoicing are currently not available on the market. AutoPult offers as a specialized solution for the automotive trade a 14-day free trial period in which all industry features are available without restriction.
Conclusion: Start Free, Work Professionally
Using free e-invoicing software is fundamentally possible – but only truly practical for very simple use cases with low invoice volume. Anyone who regularly writes invoices, must meet industry-specific requirements or values legally secure, GoBD-compliant processes will inevitably reach the limits of free solutions.
Our advice: by all means use free tools to familiarize yourself with e-invoicing and gain initial experience. For productive use in daily business, we recommend switching in good time to a professional solution that precisely fits your industry and workflow. In the automotive trade, AutoPult offers exactly the combination of e-invoicing, vehicle management and accounting integration that you need for smooth operations.
