Electronic invoicing regulations are swiftly becoming the norm across the European Union (EU) and worldwide, propelling procurement standardization. Unsurprisingly, countries like France, Poland, Spain, and Ukraine are gearing up to roll out their e-invoicing regulations in 2023 and beyond.
The age of rapid technological progress has prompted governments to recognize the pivotal role of digitization, prompting the imposition of e-invoicing mandates.
Notably, countries like Italy have already demonstrated the potential of electronic invoice systems to enhance business efficiency, curtail tax evasion, and optimize the customer billing experience.
This article delves into electronic invoices, shedding light on the countries poised to implement this transformative system in the forthcoming years.
Stay engaged to discover more about the global landscape of e-invoicing and its pivotal role in compliance.
Austria’s e-invoicing journey commenced with the ICT Consolidation Act in 2012. By January 1, 2014, electronic invoicing had become obligatory between businesses and the government (B2G).
However, there were exceptions where electronic invoicing was not mandatory, such as insurance agreements, leasing contracts, and immediate payments.
Austria’s Federal Ministry of Finance oversees the e-invoicing system. To ensure that its e-invoicing solution is interoperable with other European Union (EU) countries, the Austrian government aligns with EU Directive 2014/55/EU.
E-invoicing in Austria streamlines public procurement processes, making them efficient and effective. Suppliers can choose between ebInterface, facilitated by the Federal Services Portal (Unternehmensserviceportal - USP for national transactions or PEPPOL, which fosters international transactions.
Adapting to these options ensures smoother business transactions, aligning with the evolving e-invoicing landscape.
To curb Belgium's substantial VAT gap of 12.3%, amounting to EUR 4.4 billion in lost VAT, the government has rolled out mandatory e-invoicing for Business to Government (B2G) transactions.
With the government aspiring to digitize all public services by 2025, this mandatory e-invoicing solution aligns with Belgium's digital transformation strategy.
The rule, which began with certain regional entities, now extends to all regions, with phased deadlines for the implementation, which include:
- November 2022: E-invoices are required for contracts exceeding EUR 215,000
- May 2023: E-invoices for public contracts equal to or greater than EUR 30,000 must be issued.
- November 2023: E-invoices for public contracts under EUR 30,000 must be issued.
Some things to note to ensure e-invoicing compliance include:
- Using certified e-invoicing software
- Using the approved Peppol Access Points by BOSA-DT
- Sending e-invoices using secure electronic signatures and businesses must ensure robust record-keeping.
Chile pioneered voluntary e-invoicing in 2001, and since then, its digital infrastructure has developed.
In 2018, Chile's Servicio de Impuestos (SII) mandated B2B e-invoices for all taxpayers, strengthening compliance.
Effective August 1, 2022, Chile removed the requirement for daily sales reporting. Instead, the SII will collect Electronic Tax Documents (DTE) data for tax information.
The DTEs, Chile's local term for e-invoices, require companies to register with SII for issuance and reception. These documents undergo real-time validation by SII.
Companies must secure a Folio Authorization Code (CAF) from SII. They may need to enlist certified electronic invoicing providers if they are not tech-savvy or don’t have the resources to develop their own software.
Read also: Advanced E-Invoice Regulation Guide in Chile
Denmark's e-invoicing journey began in 2005 when it made e-invoicing mandatory for B2G transactions. Now, they are extending its scope to B2B, showcasing its commitment to technological advancement and streamlined financial operations.
The recent Bookkeeping Act requires the electronic transmission and storage of invoices, with implementation dates ranging from January 2024 to January 2026.
Danish e-invoicing is powered by the NemHandel platform, which guarantees standardized and secure transactions.
Because of the platform's compliance with PEPPOL standards, cross-border transaction is made simple.
Denmark's proactive stance on e-invoicing aligns with a global trend for enhanced efficiency and cost reduction.
By transitioning to mandatory e-invoicing, Denmark empowers businesses to streamline processes, benefit from better tracking, and pave the way for future cross-border e-trading.
The Public Procurement Regulations 2019, implemented in May 2019, mandates using e-invoicing for public procurement. This makes England, among 31 European nations, to have embraced electronic invoicing to streamline business transactions.
By providing a common platform for e-ordering, e-invoicing, and electronic credit notes, PEPPOL, a standardized e-procurement network, empowers UK entities to have a singular e-Procurement link, facilitating interactions with suppliers of all sizes, both domestically and globally.
As PEPPOL's influence grows within the NHS and beyond, businesses can expect enhanced transparency, reduced costs, and seamless cross-border interactions.
You may also like: How Do I Become Ready for Peppol? (A Beginner's Guide)
First established in 2010, the French government has continuously pushed for an e-invoicing system in the past few years. Through this initiative, the government’s main target is to work against VAT evasion and make transaction processes more effective.
However, the government's dedication to this cause took a strategic turn when it recently deferred the anticipated enforcement of mandatory e-invoicing and e-reporting, originally slated for 2024.
Citing the need for comprehensive preparedness and enhanced collaboration, the government extended the deadline without a specified new date.
This decision reflects a concerted effort to align businesses' processes, technologies, and resources with the impending e-invoicing requirements, underlining a spirit of cooperation.
Like other countries, the French government first mandated an e-invoice for all business-to-government (B2G) transactions. Chorus Pro is at the heart of this system, a public platform that provides clearances to e-invoices.
The French government aims to establish a framework to introduce e-invoicing for business-to-business (B2B). The exact specifications of the framework are still under work.
However, according to the official ordinance no. 2021-1190 of 15 September 2021, the reform will include the following:
- The system of e-invoices will be liable to all the companies, subject to VAT, starting from the new date yet to be announced.
- The issuance of the e-invoices is subject to the company’s size. The implementation date was postponed for enterprises, 1 January 2025 for mid-sized companies, and 1 January 2026 for small-scale and micro ventures.
- E-reporting will be mandatory even for transactions not associated with e-invoicing, including transactions with an individual not liable for VAT and cross-border sales with exempted entities.
Companies will choose to either work on Chorus Pro, which handles all the e-invoicing matters for B2G transactions, or a state-certified e-invoicing solution like Storecove. The choice will depend upon the dynamics of the company.
Hungary's electronic invoicing scene follows a unique path. While not mandating Business-to-Government (B2G) and Business-to-Business (B2B) e-invoicing, Hungary enforces real-time invoice reporting (RTIR).
Since April 1, 2021, companies have been obligated to disclose invoice data via the Online Invoice System (Számla platform), encompassing modifications, invalidations, and cross-border transactions.
This includes business-to-customer (B2C) transactions and non-resident transactions.
Hungary's fiscal framework operates under the auspices of tax authorities, Nemzeti Adó és Vámhivatal (NAV). The RTIR system mandates immediate transmission of invoice details to NAV upon issuance.
This data submission marks invoice issuance's completion, ensuring data integrity.
Companies must ensure data accuracy and maintain compliance with archiving regulations. While Hungary's e-invoicing journey is distinct, embracing the RTIR model aligns businesses with tax regulations, fostering efficiency and transparency.
Staying updated with Hungary's evolving invoicing landscape and employing compliant software solutions will empower businesses to thrive within the nation's dynamic tax ecosystem.
Italy embarked on a transformative journey in January 2019 by mandating electronic invoicing for all VAT-registered businesses, including B2Bs, B2Cs, and B2Gs.
Operating through the Sistema di Interscambio (SdI) platform, this mandate aims to enhance fiscal transparency, curb tax evasion, and simplify administrative processes.
Since July 2022, cross-border transactions also adhere to these e-invoicing requirements, fostering seamless transactions within and beyond Italy's borders.
The FatturaPA (XML) format, endorsed by the Italian Revenue Agency (Agenzia Entrate), is the standard for electronic invoices. Comprising a digital signature (CAdES-BES or XAdES-BES), this format ensures data authenticity and integrity.
Italy's e-invoicing transition not only bolsters fiscal accountability but also positions Italian businesses for global transactions, underscoring Italy's commitment to technological advancement and regulatory modernization.
By navigating e-invoicing requirements adeptly and exploring support from reliable providers like Storecove, Italian businesses can confidently navigate this digital transformation era.
Storecove offers businesses a compliant solution aligning with evolving regulations. As e-invoicing continues to shape global transactions, embracing solutions like Storecove can help you keep up with the evolving e-invoicing regulations ensuring seamless and efficient operations.
From 2025, the Pan-European Public Procurement Online (PEPPOL) framework will mandate e-invoicing for both business-to-business (B2B) and business-to-government (B2G) transactions.
This proactive step stems from the Latvian Cabinet's endorsement of a report in October 2021 outlining the implementation of an e-invoicing system.
The system will leverage PEPPOL, a pan-European standard, ensuring uniformity in e-invoice exchange.
A diversified method of e-invoice submission exists, including official electronic address tools and established platforms like ePakalpojumi.lv.
This development in e-invoicing indicates the possibility of profound business change. With B2G transactions aligned with EU directives, the B2B landscape is set for a revolution in 2025.
If you operate an enterprise in the country, you can prepare by understanding the nuances of e-invoicing regulations, adopting compliant formats such as UBL 2.1 and CII, and considering service providers like Storecove for seamless compliance.
You may also like: E-Invoice Requirements in Latvia (Important Facts)
Starting in June 2024, the Malaysian Inland Revenue Board (IRB) has mandated e-invoicing for businesses achieving a sales threshold of RM100 million annually. The plan is for all companies to implement the new system from January 2027.
This initiative marks a strategic step toward streamlining tax administration and modernizing e-invoicing compliance
The e-invoices will be created in formats such as XML, UBL, IDOC, or EDIFACT, allowing seamless automation and processing by the relevant accounting system.
The created file will then be submitted to IRB’s central platform for real-time verification through the proposed Continuous Transaction Controls (CTC) Clearance model ensuring accuracy and compliance.
While the mandate begins in June 2024, the IRB encourages proactive involvement by businesses. A pilot project is open for voluntary participation, offering companies a head start in the e-invoicing transition.
The Netherlands introduced e-invoicing in 2011, obligating central agencies to receive and process electronic invoices via Digipoort. Since 2017, central government suppliers must send e-invoices. This obligation expanded to sub-central agencies in 2019.
This adoption of e-invoicing has significantly digitized government transactions, with 95% of entities implementing it.
As a business operating in the Netherlands, you can issue electronic invoices through the PEPPOL network recommended by the Dutch government for cross-border interoperability.
Complaints can be sent using PEPPOL BIS, UBL-OHNL, SETU OHNL, NL CLIUS, and BFR. Digital signatures aren't mandatory; archiving must be done for seven years (10 for immovable properties).
Poland has recently decided to follow in the footsteps of Italy and mandate e-invoicing and e-reporting for all kinds of transactions. The framework was initially set to be mandated from 1 January 2023, but the government amended its plans.
On 7 August 2023, the Ministry of Finance introduced new regulations for the National e-Invoice System (KSeF), scheduled to be mandatory from 1 July 2024. This visionary step towards digitization aims to streamline processes and combat tax fraud effectively.
The recent amendments primarily focus on enhancing procedures for group companies, fostering voluntary early adoption before the official rollout.
Also, as part of its digitization process, Poland launched a platform called Platformy Elektronicznego Fakturowania” or simply PEF, on 1 April 2019.
The platform was established to facilitate transactions through e-invoices between public entities and private companies.
All public entities have to register and receive their invoices through this platform.
Notably, the government in Poland had announced that all e-invoices from 1 January 2023 will have to be issued for approval through the national e-invoicing system called “KSeF.” From 2023, the use of KSeF will become mandatory for all.
Considering these changes, all businesses in Poland will now have to use e-invoicing solutions for their transactions. Businesses will have to think of ways to handle and receive e-invoices.
One way is to handle everything in-house, especially if you own a large-scale business. Alternatively, you can outsource it to a service provider.
As part of the "Crea y Crece" Law introduced in September 2022, the Spanish Ministry of Economic Affairs and Digital Transformation has published a draft of a technical regulation mandating electronic invoices for all Spanish companies, including SMEs and self-employed individuals.
Under the new framework, all electronic invoices and their corresponding accounting records must be routed through the national FACe platform.
This ensures centralized access and recording of e-invoices associated with companies, freelancers, and their business relationships.
The main rules are:
- Both companies and freelancers will have to provide access to all the necessary programs by which their recipients can read, download, and print electronic invoices.
- The invoices should be available electronically to the recipients for at least four years.
- If the company or freelancer does not provide the option to receive electronic invoices, then an administrative offense will be charged to the party.
- Electronic invoices should comply with all the invoicing regulations laid out by the Spanish government.
The legislation will also offer a grace period to both companies and freelancers. Those with an annual turnover of less than €8 million have to transition three years from when the law is published in the Official State Gazette (BOE).
On the other hand, large enterprises with more than €8 million in annual turnover will have one year to transition.
As part of its initiative, the Spanish government has also started the Digital Toolkit Program, through which it is helping companies financially to adapt to a system of electronic invoices.
Ukraine is also moving towards an electronic invoicing system to improve business processes. As its first step, large taxpayers will have to implement SAF-T on request from 1 January 2023.
SAF-T is a standardized structure file that consists of all accounting data, like the condition of liabilities, equity, and assets, together with the company’s business status and financial information, in an electronic form.
The SAF-T in Ukraine has the following sections:
- General information regarding the taxpayer;
- The directories of the taxpayer;
- All the accounting records;
- Information regarding any documentation for accounting records;
- Transferred or received funds;
- Actual amounts of the tangible assets of the business;
- An overview of the business operations involving both tangible assets as well as intangible assets;
- Information regarding accounting statements;
- Tax differences.
All large enterprises in the country will be required to submit the SAF-T US within two working days of receiving the request. They are also expected to have the proper software for creating the file. This initiative is the first of its kind to move towards electronic invoicing.
In the coming years, Ukraine can expect a proper legal framework, making e-invoicing mandatory like other European countries.
Takeaway: Get a head start on upcoming e-invoicing regulations in your country
Countries across Europe are now making e-invoicing mandatory for all kinds of transactions.
The framework promises more innovation, modernization, and investment as companies will make their procurement processes more efficient.
If you own a company, it’s high time to start thinking about incorporating an e-invoicing system into your operations.
As a government-approved invoicing platform, Storecove can support your operations and help you adhere to all the e-invoicing regulations.
Schedule a demo and bring your business closer to digitization.
More information about e-invoicing mandates coming?