Accounting technology / Glossary / E-invoicing

What is e-invoicing?

Definition

E-invoicing is issuing and receiving invoices as structured data that the buyer's and seller's systems can read directly, rather than as PDFs or paper. In many countries the invoice must also pass through, or be reported to, a government platform or an approved network, which gives the tax authority VAT data on each transaction as it happens.

Also calledelectronic invoicinge-invoicestructured e-invoicing

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Format: Structured data, not PDF
EU standard: EN 16931
Category: Tax and compliance

How e-invoicing works and where it is required

An e-invoice follows a set format, such as the EU standard EN 16931, the Peppol formats or a national format, and travels through one of three models: a central government platform that clears each invoice before it reaches the buyer, as in Italy; a network of accredited providers such as Peppol, used in Belgium, Australia and Singapore; or a mix where providers exchange invoices and report data to the authority, as France is introducing. Italy has required e-invoices between businesses through its exchange system since 1 January 2019. Germany has required businesses to be able to receive e-invoices since 1 January 2025, with the obligation to issue them phased in over 2027 and 2028. Belgium required them from 1 January 2026 and France from 1 September 2026, and under ViDA cross-border EU invoices follow from July 2030. Fonoa, Avalara and Pennylane handle e-invoicing across countries; Xero sends Peppol invoices.

Common questions

Is a PDF invoice an e-invoice?+

Not under e-invoicing mandates. A PDF is an electronic document but not structured data; mandates require formats such as XML that software can process without anyone reading the invoice.

What is a clearance model?+

A system where each invoice is sent to the tax authority's platform, validated and only then delivered to the buyer, as in Italy. It gives the authority real-time data and makes the cleared invoice the legal one.

Do e-invoicing mandates apply to foreign companies?+

It depends on the country. Most domestic mandates cover businesses established or VAT-registered there; some also cover foreign businesses with local registrations. ViDA will extend e-invoicing to cross-border EU supplies from 2030.