5 Reasons to Start E-invoicing

E-invoicing is picking up steam worldwide. Over 50 countries have introduced an e-invoicing mandate, with many more to follow.

Mandatory e-invoicing is especially relevant with the EU’s upcoming VAT in the Digital Age (ViDA) act, which requires EU member states to adopt e-invoicing by 2030. The passage of ViDA signifies current broader global trends: E-invoicing is here to stay and is only becoming more prevalent.

B2B e-invoicing is not yet required in the U.S. and U.K. However, if your business is located in either region, you should still consider beginning e-invoicing.

In this article, we describe the current status of e-invoicing mandates around the world, along with 5 reasons your business in the U.S. or U.K. should adopt e-invoicing. Continue reading to find out why e-invoicing is essential.

Let’s dive in.

What is the Current Status of E-invoicing Around the World?

There are currently over 50 countries with e-invoicing mandates. E-invoicing is extremely prevalent around the world, not just in a select few regions.

Each mandate is slightly different, so it is impossible to give a concise overview that fully describes each one. However, many of the mandates can be grouped by e-invoicing network used or model required.

Read more: Download our free E-invoicing Compliance Timeline

Most Popular E-invoicing Networks

Most e-invoicing mandates around the world are based on the Peppol open exchange network. Peppol functions similarly to a telephone network: If you have a business’ Peppol ID, you can send them e-invoices through Peppol – just like you’d be able to call a friend with their telephone number.

Peppol is popular due to its security and efficiency. Service providers must be accredited as a Peppol Access Point before they can transmit e-invoices over the network on behalf of businesses, which includes receiving an ISO 27001 certification to guarantee secure treatment of data.

In the U.S., the Digital Business Networks Alliance (DBNAlliance) open exchange network is used. It functions similarly to Peppol: It is a highly secure network that connects businesses directly. Although it is used in a different region than Peppol, service providers like Storecove can help you access both networks through a single connection. No need to worry about compliance or duplicating e-invoices across networks.

Some countries require the use of a specific portal or platform for transmitting e-invoices. For example, Malaysia requires businesses to submit e-invoices through MyInvois, a platform created by the Inland Revenue Board of Malaysia (IRBM), its tax authority. However, these situations are already uncommon and will continue to get rarer as networks like Peppol and the DBNAlliance continue to grow.

Read more: Download our free Peppol Whitepaper

Most Popular E-invoicing Models

The most popular e-invoicing framework is the Peppol 4 corner model. As illustrated in the diagram above, the network connects buyers and sellers through their respective Peppol Access Points. The 4 corner model enables near real-time invoicing, allowing for transparency into transactions and a much faster transaction speed compared to manual systems.

Another e-invoicing framework currently gaining traction is the Peppol 5 corner model. This is very similar to the 4 corner model – the only difference is the inclusion of a tax authority. Some countries mandate that e-invoices are reported to their tax authority. In these cases, the sender’s access point will typically submit the e-invoice to the tax authority for approval or validation. This is a type of continuous transaction controls (CTC) framework, where invoices are submitted directly to the relevant tax authority in real-time.

Why Should My Company Start E-invoicing?

Even if your business is based in a country that does not currently mandate e-invoicing, like the U.S. or U.K., adopting e-invoicing can still be the right decision for your business. Partnering with an e-invoicing service provider has many benefits – here are 5 of the top reasons.

1. Mandates are Constantly Changing

Even though e-invoicing is currently optional in the U.S. and U.K., this may change in the near future. In the U.S., the Business Payments Coalition (BPC) is currently fighting for the modernization of B2B transactions. A pilot program was established in 2022 to explore the possibility of encouraging e-invoicing in the U.S. Because of movements like these (and the overall global movement toward e-invoicing), it is possible the U.S. and U.K. may soon move to mandate e-invoicing. By adopting e-invoicing now, your company can get ahead of the rush and achieve compliance stress-free.

2. E-invoicing Allows for Seamless International Compliance

Partnering with an e-invoicing provider allows your company to conduct cross-border transactions without fear of compliance issues. Many countries around the world require the use of e-invoices, so adopting them better prepares your company for international trade. As your service provider, Storecove guarantees international compliance. We automatically convert the format of your invoices to conform with local regulations, helping you avoid invoice delays or penalties.

3. E-invoicing is Extremely Secure

Adopting e-invoicing will help your company keep business documents safe. Service providers certified by the Peppol or DBNAlliance networks must uphold strict compliance guidelines and data protection measures. The networks themselves are also highly secure, encrypting all documents and delivering invoices directly between access points.

4. E-invoicing Saves Time

E-invoicing will save your organization a substantial amount of time compared to paper invoicing. Transmitting paper invoices requires manual processing and longer wait times, while e-invoices can be processed in real-time. E-invoices are validated before being sent, eliminating delays resulting in rejected invoices. Additionally, e-invoices avoid the possibility of human error, saving companies the time and money needed to correct these issues.

5. E-invoicing Allows for Scalability

E-invoicing is more scalable than paper invoicing. Large quantities of e-invoices can be transmitted quickly and easily, while paper invoices may require individual processing. Paper invoices can be doable for small businesses, but as a company grows, the more difficult it will become to maintain a manual system. Switching to e-invoicing gives your business room to develop.

How Storecove Can Support E-invoicing Implementation

Whether you’re connecting to Peppol for the first time or trying to connect to the U.S.’s DBNAlliance network, Storecove is here to help.

As a certified Peppol Access Point, we are prepared to help your business connect to the worldwide open exchange network. Our software will also allow you to send and receive e-invoices through the DBNAlliance at no extra cost. Our global API makes connecting easy: just connect to our software once, and you’ll instantly be able to send and receive e-invoices across the world.

When you send e-invoices with our API, we take care of formatting, validation, and delivery. Our software can easily fit into your organization’s current invoicing flow, allowing you to integrate quickly and meet regulatory requirements without complex onboarding. All you need to do is create an invoice. We take care of the rest, including compliance.

We update our API to account for any change in e-invoicing regulations or standards to help your company stay compliant. Keeping up with new mandates on your own is time-consuming and difficult, but our automatic updates make global compliance seamless.

The Peppol and DBNAlliance networks are constantly expanding, with new members joining daily and many mandates planned for the next few years. Get ahead of compliance issues by connecting to our API now and keeping your document standards up to date.

Get Started

Wondering whether our e-invoicing solution is a fit for your company? Request a free test account to gain access to a sandbox environment for 30 days. You’ll be able to experiment in a sandbox environment, giving you the chance to explore our intuitive interface and experience the benefits firsthand.

To learn more about Peppol or our e-invoicing solution, book a demo with our team. Feel free to contact us with any questions. We’re here to help.

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