E-Invoicing Regulations by Country

What is E-Invoicing?

E-invoicing (electronic invoicing) is the exchange of invoice documents between a supplier and a buyer in an integrated electronic format. Unlike PDF invoices sent by email, structured e-invoices contain machine-readable data that can be automatically processed by accounting and ERP systems, enabling straight-through processing without manual data entry.

Key E-Invoicing Standards and Formats

• EN 16931 — European standard for the semantic data model of core invoice elements
• Peppol BIS — Pan-European Public Procurement Online format based on UBL
• UBL 2.1 — Universal Business Language, widely adopted XML standard
• CII (UN/CEFACT) — Cross-Industry Invoice XML format
• XRechnung — German CIUS (Core Invoice Usage Specification) for EN 16931
• Factur-X / ZUGFeRD — Hybrid PDF/A-3 with embedded XML invoice data
• FatturaPA — Italian e-invoice format for the SdI system

EU ViDA (VAT in the Digital Age)

The European Commission's ViDA initiative will harmonize e-invoicing across all EU Member States. Key milestones include:

E-Invoicing Models

• Post-Audit Model — Invoices exchanged directly between parties, with periodic reporting to tax authorities (e.g., traditional VAT returns)
• Real-Time Reporting — Invoice data transmitted to tax authority at or near time of issuance, but invoice still delivered directly to buyer (e.g., Hungary, Spain)
• Clearance Model — Invoice must be approved/cleared by tax authority before delivery to buyer (e.g., Italy, Romania, Latin America)
• Centralized Exchange — All invoices routed through a central government platform (e.g., Poland KSeF, Italy SdI)

Benefits of E-Invoicing

Getting Started with E-Invoicing

To prepare for e-invoicing mandates, businesses should:

• Assess current invoice volumes and processes
• Identify applicable regulations in operating countries
• Evaluate ERP/accounting system e-invoice capabilities
• Consider Peppol access points or certified service providers
• Plan for format conversion and validation requirements
• Train staff on new processes and compliance requirements
• Integrate Open Banking for automated reconciliation and payments