Electronic invoicing: state of play in 5 questions and answers
Electronic invoicing: state of play in 5 questions and answers
June 2024 - From 1 January 2026, structured electronic invoices will become the norm for transactions between Belgian companies. In this article, we list everything you need to know about e-invoicing.
What is electronic invoicing or e-invoicing?
When we talk about electronic invoicing, or e-invoicing, we are not talking about invoices you deliver to your customers via e-mail in PDF. Even though these have proven their usefulness, they do not offer all the benefits of e-invoices.
An e-invoice is an invoice in the xml file type and structured UBL format. It sounds technical, but the important thing is that these types of files are automatically recognised and processed by most accounting packages with minimal manual input. And that offers numerous advantages.
What are the benefits of e-invoices?
· Creating and sending invoices is lightning fast
· E-invoicing is 75% cheaper than paper invoicing
· Electronic invoices are paid faster
· Human error is eliminated
BONUS:
Incoming and outgoing invoices are entered immediately upon receipt or dispatch, so your accounting figures are always up to date. Your accounting therefore becomes a useful tool to measure the financial health of your business.
What does the law say about e-invoicing today?
EU legislation The European Commission is moving ahead with a legislative proposal (ViDA) mandating e-invoicing for B2B transactions. The timing is as follows:
· By 2024, European member states will mandate e-invoicing tomorrow, without the consent of the European Parliament. Poland and Italy are already doing so today.
· By 2028, e-invoicing should be the norm within the EU. Digital reporting of transactional data will also be required.
Belgium
The Belgian government is moving towards the mandatory introduction of e-invoicing. Parliament gave the go-ahead for legislation in early 2024. From 1 January 2026, structured electronic invoices will become the norm in transactions between taxable companies. The rollout will use the European PEPPOL network.
The expected impact is large, as 60% of invoices in Belgium are sent via e-mail today. Some 25% of invoices already have a structured format.