Case Study: Seamless ELSTER Integration for Payroll Tax Filing in Odoo 18.sh
About Manufacturers Who Wanted to Digitize Payroll & Tax
As Germany heads toward complete digitalization of tax compliance, mid-sized manufacturers must act fast to avoid inefficiencies and penalties. A firm producing industrial components with over 350 employees in North Rhine-Westphalia suffered delays when their ELSTER payroll tax filing relied on outdated manual workflows. While they operate Odoo 18 Enterprise from Odoo.sh, their manual process rendered XML exports error-prone and caused significant risk. Recognizing these challenges, Silent Infotech stepped in to deliver a customized ELSTER connector solution, seamlessly integrated with the client's Odoo instance.
This case study exposes how our versatile ELSTER connector allowed the client to deliver faster tax filings,
achieve 100% compliance with the regulatory requirements, and have a sense of relief while traversing a
very regimented digital tax area.
The Challenge Faced By Industrial Component Manufacturers
With increasing regulatory hurdles imposed by German tax officials, the client needs to submit a monthly payroll tax declaration to the tax department in UBL 2.1 XML format via ELSTER. This process was ultimately incredibly manual and risk-laden, including:
Manual Data Exports From Odoo
Manually export tax-related data and prepare data to be ready for submission on the ELSTER Portal.
Offline Formatting & Validating Of XML Files
The exported data is assembled into XML files and checked for correctness and compliance with ELSTER requirements.
Manual Uploading Of All Data To ELSTER Portal
Once the data is validated, file is uploaded to the ELSTER portal manually, where the electronic tax filing process is complete.
This process was incredibly risky to the client, represented compliance risk as well as issues of data duplication, errors in submissions, and significant delay in meeting tax submission deadlines.
ELSTER - Odoo Integration Solution From Silent Infotech
Silent Infotech implemented an ELSTER integration module that was certified, directly in the client's Odoo
18.sh environment. Without any external servers required, we did the following:
Automated XML Creation From Odoo Payroll
Odoo takes care of scripted XML files generation, which are tax compliant under UBL 2.1 specifications
from payroll documents, so no manual work is required, and you get accurate data.
Digital Signature With QR Codes Built-in
The payroll system includes digital signatures and QR codes as required by the German Tax Authorities to improve authenticity.
Uploading to ELSTER Via ERiC API
The German ELSTER official tax portal submits payroll documents directly to the German tax authorities
via the official ERiC API without the need for manual uploading, and that files are submitted quicker than
manual uploading.
Manufacturer-ID & USt-ID Verification
The software supports Manufacturer IDs (Hersteller-ID), and checks VAT ID numbers (USt-ID) to make
sure tax registration processes are compliant.
Submission Dashboard With Audit Tracking
A single dashboard to track current progress, submission history with a single click, audit trails, and make
it easier for HR and the Finance teams to understand current filings and past degrees of activity.
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Results & Impact After Elster Integration
Indicator | Before Integration | After Integration |
Tax File Preparation Time | 40–60 minutes | Under 3 minutes |
Submission Method | Manual upload via ELSTER | One-click API-based transmission |
Audit Trail | Partial & manual logs | Full digital traceability |
Risk of Errors | High | Near-zero |
Client Testimonial
Technology Highlights
Odoo 18 Enterprise on Odoo.sh
Secure cloud-based ERP environment to create modular, scalable, upgrade-safe Odoo
installations.
ERiC API with TLS-based Authentication
Secure and encrypted communication with the tax office using ELSTER's certified ERiC API and
digital certificates.
Python-based ELSTER Connector
Lightweight and secure Python integration to map Odoo payroll data requirements to German tax
law.
QR Code and XML Validation using UBL 2.1
Auto-generated processed XML files with embedded QR code and valid against the UBL 2.1
specification.
Conclusion
The client utilized Silent Infotech’s certified ELSTER integration for Odoo 18.sh transforming the time-consuming and manual process into a streamlined, completely automated digital process without changing their cloud-based Odoo environment. This implementation became 100% compliant with German tax regulations and also reduced the amount of work for the HR and finance team, achieved better accuracy, and helped remove delays in tax submissions.
For any Odoo-powered organization located in Germany that wants to simplify ELSTER compliance
while future-proofing their operation, Silent Infotech has a compliant, scalable, and audit-ready
solution available on Odoo.sh or on-premise.
Ready to Automate Your ELSTER Tax Filings in Odoo?
Eliminate manual errors, ensure 100% compliance, and save hours every month with Silent Infotech’s certified ELSTER integration for Odoo.