Electronic invoicing: state of play in 5 questions and answers
Electronic invoicing: state of play in 5 questions and answers
May 2023 – E-invoicing is becoming the norm for B2B transactions. European and local governments are working on a proposal to be rolled out by 2028.
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?
Producing and sending invoices is lightning fast
E-invoicing is 75% cheaper than invoicing on paper
Electronic invoices are paid faster
Human error is eliminated
BONUS: Incoming and outgoing invoices are entered immediately after receipt or dispatch, so your accounting figures are always up to date. Your accounting therefore becomes a useful tool for measuring 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 wants to start a phased rollout for the B2B market in July 2024, which will require entrepreneurs to be able to receive invoices via e-invoicing. 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. The Flemish government is playing a pioneering role in this and already introduced the system from 2017.