E-Invoicing Basics

E-invoicing is the electronic exchange of invoice data in a structured format between businesses and tax authorities. It matters because it increases transparency and real-time reporting, helping governments reduce the VAT gap by preventing fraud, errors, and undeclared transactions.

Governments everywhere are looking into or already mandating e-invoicing to fight tax fraud and improve efficiency. It’s not just about going digital — it’s about staying compliant without the hassle. Keep an eye on local rules to stay ahead.

It depends on your country and transaction type. In many places, B2G (business-to-government) invoices are mandatory via portals. For B2B (business-to-business), it depends on the country-specific requirement. A portal is involved, but it is not always the government directly. Check your local rules to stay ahead.

Yes, in most cases — e-invoicing mandates apply to sole traders too (e.g., UK voluntary but recommended, India GST if over ₹5 lakh turnover). Check your local rules to stay ahead.

B2B (Business-to-Business) refers to transactions between private companies. B2G (Business-to-Government) refers to transactions between businesses and public sector authorities, often subject to stricter e-invoicing and reporting requirements.

PEPPOL (Pan-European Public Procurement Online) is a standardized network and set of technical specifications that enables the secure, interoperable exchange of electronic documents — such as e-invoices — across countries and systems, especially for B2G and increasingly B2B transactions.

E-reporting refers to the electronic transmission of invoice or transaction data to tax authorities to support real-time oversight, tax compliance, and fraud reduction.