Market Sector
B2G (Business-to-Government)
Definition
B2G refers to business relationships and invoicing from companies to government entities (federal, state, municipal, and public bodies). In Germany, electronic invoicing in the B2G sector has been progressively mandatory for federal authorities since 2020 and increasingly for state and municipal authorities. The required format is XRechnung or another EN 16931-compliant format.
Background & context
B2G (Business-to-Government) refers to invoicing from businesses to the public sector: federal, state and municipal authorities as well as public institutions and enterprises. In Germany, the B2G sector was the pioneer of mandatory electronic invoicing. The basis is EU Directive 2014/55/EU, implemented in Germany via the E-Government Act (§ 4a EGovG) and the federal E-Invoicing Ordinance (ERechV) plus corresponding state ordinances. Since 27 November 2020, suppliers to federal authorities must submit electronic invoices in an EN 16931-compliant format — in practice XRechnung. Unlike B2B, B2G requires the Leitweg-ID in BT-10, because the invoice must be routed correctly to the receiving unit via central inbound platforms (for the federal government, OZG-RE alone since 19 September 2025, which several states use as well). The federal states have different effective dates and partly their own platforms.
In practice — a worked example
An advertising agency wins a contract from a federal office. For the final invoice it must create an XRechnung, enter the Leitweg-ID assigned by the office into BT-10 and submit the file via the federal invoice receipt platform (OZG-RE) — for example by web form or Peppol. A mere PDF invoice by email would be rejected, as it is neither structured nor correctly routed. For state or municipal contracts, the agency checks which platform and which effective date apply there.
Common mistakes
- •In B2G the Leitweg-ID goes into BT-10, which BR-DE-15 requires in every XRechnung; in B2B that field carries another buyer reference. Without the Leitweg-ID, delivery to an authority fails.
- •States and municipalities have differing effective dates and platforms; one must not assume a uniform nationwide rule.
Frequently asked questions
Since when does the B2G e-invoicing obligation apply?
Towards federal authorities, suppliers have had to invoice electronically and in an EN 16931-compliant way since 27 November 2020. States and municipalities have their own, sometimes later, effective dates.
Which format do I need for B2G?
An EN 16931-compliant format, in practice usually XRechnung. ZUGFeRD in the EN 16931 profile is generally possible, but check the requirements of the specific receiving portal.