Facturwise vs Zoho Invoice: Free Plan and EU Compliance

Facturwise vs Zoho Invoice at a glance

Two different tools for two different jobs

Zoho Invoice is one of the most generous free invoicing tools available. The free plan has no time limit, no forced upgrade, and no advertising. It includes invoice creation, time tracking with project budget monitoring, expense tracking with billable expense conversion, a full client portal where clients can log in and pay invoices directly, automated payment reminders, and recurring invoices. Native apps for iOS, Android, and Windows are confirmed from the official homepage. European user data is routed to EU data centres automatically. For a freelancer or small business invoicing clients in markets without structured e-invoicing mandates, Zoho Invoice is a genuinely excellent free tool with a feature set that most paid competitors would charge for.

Facturwise is a focused e-invoicing platform. It does not have the feature breadth of Zoho Invoice. There are no native mobile apps yet. The client portal is shareable invoice links rather than a full self-service portal with payment capability. Recurring billing is on the Professional plan rather than free. What Facturwise does is generate compliant structured e-invoices in ZUGFeRD 2.4, Factur-X 1.0.8, XRechnung 3.0, and Peppol BIS 3.0 at EN 16931 profile level, covering the German, French, Belgian, and Dutch e-invoicing mandates from one account on every plan including the free tier.

The comparison below covers the specific situation where these two tools diverge completely.

The EU e-invoicing gap in Zoho Invoice

Zoho Invoice does not support any structured EU e-invoicing format. ZUGFeRD, XRechnung, Factur-X, and Peppol BIS 3.0 are not available in any Zoho Invoice plan or configuration. This is confirmed in Zoho's own documentation, which states that e-invoicing is not supported in Zoho Invoice and redirects users to Zoho Books or Zoho E-Invoice for those requirements.

The German Zoho Invoice homepage is particularly telling. It markets the product directly to German small businesses and freelancers with a full German-language interface, EU data hosting, and a local support email. It makes no mention of ZUGFeRD, XRechnung, or the German B2B e-invoicing mandate. A German business using Zoho Invoice for its day-to-day invoicing and then facing client requests for ZUGFeRD-compliant invoices has no path to generate them within Zoho Invoice.

This gap matters for three specific markets right now.

Germany's B2B e-invoicing mandate has required all German businesses to receive structured e-invoices since January 2025. Sending obligations are phasing in, with larger businesses required to send from January 2027 and all businesses from January 2028. German clients are increasingly requesting ZUGFeRD or XRechnung invoices. Zoho Invoice cannot generate either.

France's mandate became active for receipt in September 2026 and extends to sending for all businesses in September 2027. French business clients require Factur-X. Zoho Invoice does not support Factur-X.

Belgium's B2B Peppol mandate became active in January 2026. Belgian business clients require invoices in Peppol BIS 3.0 format. Zoho Invoice does not support Peppol BIS 3.0.

What Zoho offers for EU e-invoicing and what it costs

Zoho's answer for users who need ZUGFeRD and XRechnung is Zoho Books, the paid accounting suite. Zoho Books supports ZUGFeRD and XRechnung for both import and export, and connects to the Peppol network via a partnership with Storecove. It is GoBD compliant and supports DATEV export for German users.

Zoho Books is not free for most users. The Standard plan starts at $20 per month per organisation. A free tier exists but requires annual revenue below $50,000 and caps at 1,000 invoices per year. Confirmed from zoho.com/us/books/pricing. For businesses whose revenue exceeds that threshold or whose invoice volume grows beyond the cap, Zoho Books becomes a paid accounting suite commitment.

Zoho Books is also a full accounting system covering bookkeeping, VAT returns, bank reconciliation, and financial reporting. If you only need compliant outgoing e-invoices and do not want a full accounting suite, upgrading from Zoho Invoice to Zoho Books means paying for a significant amount of functionality you may not need or want.

Facturwise's Advanced plan at €13.90 per month covers ZUGFeRD 2.4, Factur-X 1.0.8, XRechnung 3.0, and Peppol BIS 3.0 with unlimited invoices and no accounting features you would not use. For users who already handle their bookkeeping through another tool or through a Steuerberater and simply need the EU e-invoicing compliance layer, Facturwise covers that gap without a full accounting suite upgrade.

Where Zoho Invoice is stronger

Zoho Invoice has genuine advantages that Facturwise does not match and it would not be honest to omit them.

The free plan is broader. Zoho Invoice's free plan covers invoice creation, time tracking with project budgets, expense tracking with billable expense conversion, a full client portal with payment capability, automated payment reminders, and recurring invoices, all at no cost and with no time limit documented on the official homepage. Facturwise's free plan covers 5 invoices total with all four e-invoicing formats but does not have payment gateway integrations, mileage tracking, or a full client portal.

Time tracking in Zoho Invoice is more sophisticated. Staff can log time from their personal devices. Projects have budgeted hours and expenses. Timesheets are shareable through the client portal. Billable hours convert to invoices automatically. For agencies or consultants who bill by the hour, this is a strong free feature set.

The client portal in Zoho Invoice is more complete. Clients log in with a user ID and password, view credits, approve quotes, pay invoices directly, and download statements. Facturwise provides shareable invoice links but not a full self-service payment portal.

The mobile experience is stronger. Zoho Invoice has native iOS, Android, and Windows apps confirmed from the official homepage. Facturwise works in the mobile browser but does not yet have a native app.

If your invoicing stays within markets that do not yet require structured e-invoicing, or if you are comfortable upgrading to Zoho Books when EU mandates require it, Zoho Invoice is a genuinely capable free tool with features that Facturwise does not currently match.

Where Facturwise is stronger

The format gap is the single decisive reason to choose Facturwise over Zoho Invoice for European businesses invoicing clients who require structured formats.

Zoho Invoice cannot generate ZUGFeRD, XRechnung, Factur-X, or Peppol BIS 3.0 in any plan or configuration. If any of your clients are in Germany, France, Belgium, or the Netherlands and their systems require structured e-invoicing, Zoho Invoice cannot serve them. Facturwise generates all four formats on every plan including the free tier.

The cross-border combination works from one Facturwise account. A freelancer invoicing German clients in ZUGFeRD, French clients in Factur-X, and Belgian clients in Peppol BIS 3.0 manages all three from one account with no additional setup. In the Zoho ecosystem, achieving this would require Zoho Books with country-specific configurations and Peppol network registration through Storecove. The broader pattern of why this gap exists across invoicing tools is covered in our piece on the ERP outgoing invoice gap.

The DATEV-compatible CSV export on all Facturwise plans including the free tier gives German users a path to hand off invoice data to their Steuerberater without committing to Zoho Books or a paid accounting workflow. Zoho Invoice has no documented DATEV export.

Invoice output in 22 languages from one Facturwise account means each client receives their invoice in their own language without template switching. Your German client receives a German invoice. Your French client receives a French invoice. Your Dutch client receives a Dutch invoice. All from the same account, on the same plan.

If you are evaluating other tools alongside this comparison, our Lexoffice comparison, sevDesk comparison, FastBill comparison, and easybill comparison cover similar trade-offs against different German market competitors.

When Zoho Invoice is the right choice

Zoho Invoice is the right choice if you invoice clients who do not yet require structured e-invoicing in ZUGFeRD, XRechnung, Factur-X, or Peppol BIS 3.0 format, and you value a fully featured free invoicing tool with strong time tracking, expense management, a full client payment portal, and polished mobile apps.

If you are already in the Zoho ecosystem using Zoho CRM, Zoho Projects, or other Zoho products, Zoho Invoice integrates naturally with the rest of the suite. When EU e-invoicing mandates eventually affect your clients, Zoho Books is the in-ecosystem upgrade path.

If your clients are primarily in the UK, North America, or other markets outside the current EU structured e-invoicing mandates, Zoho Invoice's free plan covers all the invoicing functionality you need without a monthly fee.

When Facturwise is the right choice

Facturwise is the right choice if you need to send ZUGFeRD, XRechnung, Factur-X, or Peppol BIS 3.0 invoices to European clients and want to do so without upgrading to a paid accounting suite.

If you currently use Zoho Invoice and your German clients are beginning to request ZUGFeRD invoices, your French clients now require Factur-X under France's September 2026 mandate, or your Belgian clients require Peppol BIS 3.0 since January 2026, Zoho Invoice cannot generate those formats. Facturwise generates all four from its free plan.

If you have a Steuerberater handling your accounting and need a DATEV-compatible export to hand off invoice data monthly, Facturwise generates that on all plans including the free tier.

If you work in English, German, or French and need a full UI in those languages, Facturwise covers all three. Zoho Invoice has a confirmed full German interface and is available in multiple other languages, so this is not a decisive difference for German-speaking users specifically.

If you need invoice output in multiple languages from one account, Facturwise supports 22 invoice output languages from every plan.

If you already have an invoicing workflow you are happy with and only need the EU e-invoicing compliance layer added on top, Facturwise handles that layer without replacing your existing tool. Zoho Invoice and Facturwise can coexist: Zoho Invoice for general markets and clients who accept standard PDF invoices, Facturwise for the European clients who require ZUGFeRD, Factur-X, XRechnung, or Peppol BIS 3.0.

What Facturwise does not do

This comparison would not be honest without stating clearly what Facturwise does not cover. Facturwise does not provide payment gateway integrations for online payment collection directly from clients. It does not have mileage tracking. The client portal is shareable invoice links rather than the full self-service payment portal that Zoho Invoice provides free. There is no native mobile app yet. No bookkeeping, bank reconciliation, VAT return preparation, or GoBD-compliant archiving. Time tracking is basic compared to Zoho Invoice's project budgeting and client portal timesheet sharing.

Facturwise is built for one thing: generating compliant structured e-invoices for European markets and providing the DATEV handoff for German Steuerberater workflows. If you need the full invoicing feature set that Zoho Invoice provides free, Facturwise does not replace it. It supplements it for the EU e-invoicing compliance layer.

Frequently asked questions