Digitalization has brought many benefits to businesses, but also new regulations and limits. One of them is EN 16931, a European standard for electronic invoicing that aims to improve interoperability, efficiency, and transparency in transactions between public and private entities. Therefore, it affects the issuance of electronic invoices and its role is vital if you operate in B2G environments and, increasingly, in B2B. We explain what EN 16931 is and what its advantages are.
What is the EN 16931 standard?
To begin with, the EN 16931 standard is a technical specification developed by the European Committee for Standardization (CEN). Specifically, it defines the semantic data model for electronic invoices.
Regarding its origin, it was officially adopted by the European Union in 2017 and aims to establish a common format for invoices issued and received between businesses and public administrations within the European Economic Area (EEA).
Furthermore, among the main characteristics of EN 16931, we would highlight that:
- It is a harmonized standard at European level.
- It defines a semantic data model, not a specific format. Therefore, it can be implemented in different markup languages such as UBL (Universal Business Language) or CII (Cross Industry Invoice).
- It is designed to guarantee interoperability between invoicing systems.
- It is compatible with exchange networks such as Peppol, which greatly facilitates international invoice traffic.
Legal framework: European electronic invoicing regulation
In turn, EN 16931 is supported by Directive 2014/55/EU of the European Parliament. A directive that obliges public administrations of all Member States to accept electronic invoices compliant with this standard.
In Spain, where it also has its legal framework, the directive is transposed through the Law 9/2017 on Public Sector Contracts.
For its part, EN 16931 establishes a series of derived legal obligations, among which the following stand out:
- The public administrations are obliged to accept invoices in electronic format.
- The companies supplying the public sector must issue invoices that comply with this regulation.
The truth, or the most tangible result, is that this situation has accelerated the need for technological adaptation and digital transformation in the business fabric. Especially in companies that work or wish to work with the public sector and operate in international environments.
EN 16931 Compliance Levels
Regarding EN 16931 compliance, it can be understood from different levels. For this, technological maturity and the environmental requirements of each business must be considered:
1. Basic Compliance
- Use of a structured format such as UBL or CII.
- Inclusion of the mandatory semantic elements defined by the standard.
- Generation of invoices compatible with the common European data model.
2. Intermediate Compliance
- Incorporation of optional elements to improve the information contained in each invoice.
- Capacity for automatic validation through syntax verification tools.
- Partial integration with networks like the aforementioned Peppol.
3. Advanced Compliance
- Total automation of the invoicing cycle:
- Complete integration with ERP systems and other platforms.
- Capacity to manage large volumes of invoices with traceability.
How EN 16931 is applied: processes and conditions
In any case, when it comes to complying with EN 16931 and implementing software that adapts to it, a process must be followed and a series of steps taken to ensure effective compliance with the standard. So the step-by-step process would be:
1. Initial Diagnosis
- Evaluate your current invoicing system.
- Identify compatibility with official formats.
- Analyze your software’s interoperability capability.
2. Software Provider Selection
- Choose a solution that ensures full compliance with European invoicing regulations in general, and with EN 16931 in particular.
- Consider functionalities such as automation, integration with ERPs, legal updates, and, of course, support.
3. Internal Process Adaptation
- Train administrative and financial staff in the use of the chosen solution and ensure they know and understand the regulation itself.
- Redefine accounting workflows based on what your system offers.
4. Testing and Validation
- First, generate your electronic invoices in a test environment.
- Then, validate them on different certification platforms (such as the EU eInvoicing tool) to ensure they are correct and comply with the standard.
5. Final Deployment
- Once the previous step is complete, it’s time to activate the system in the real environment.
- Perform continuous tracking and monitoring to ensure regulatory updates.
Advantages of adopting the EN 16931 standard
As we have been saying from the beginning, adopting this regulation is not just a legal matter. It also represents a strategic opportunity to improve efficiency across the entire business scope.
Specifically, the biggest benefits (operational, technological, legal, and fiscal) provided by implementing software compliant with EN 16931 are:
- Fewer errors in the issuance and reception of invoices.
- Cost savings in paper, shipments, and document management.
- More payment agility and a shorter average collection period.
- European and national legal compliance.
- Facilitates auditing and tax control thanks to standardized semantics.
- Interoperability with European systems.
- Integration with ERP systems and accounting platforms.
- Improves traceability and security of financial information.
Practical Cases
To better understand what EN 16931 entails and its real impact, let’s look at two specific examples:
- A company that exports goods to Germany can issue invoices directly in UBL format without needing local adaptations.
- A supplier working with the Spanish public administration can automate invoice generation complying with FACe via Peppol.
Is easyap compatible with the EN 16931 standard?
It is at this point that we must mention easyap. In such a demanding and changing legal environment, having a technology provider that guarantees compliance with European standards is essential.
We offer you an e-invoicing solution that is 100% compatible with the EN 16931 standard. At the same time, it is designed to cover both your legal needs and operational shortcomings. For example:
- You issue and receive invoices in UBL and CII.
- It integrates with other systems, as well as with the Peppol network, which is ideal if you operate internationally and cross-border.
- Automatically validates the semantic content according to the standard.
- You completely automate the cycle of accounts payable and accounts receivable.
- You archive digitally and in accordance with the law all your invoices and documents.
And all this without going into specific details, sectors, or volumes, as these are “just” general benefits of easyap. Therefore, if your company wants to comply with European invoicing regulations and gain efficiency, we are the solution.
To summarize, the EN 16931 standard is much more than a legal requirement: is a catalyst for the digital transformation of financial processes.Its adoption allows companies to improve their competitiveness, adapt to the new digital environment, and create smoother and more secure business relationships across Europe.
Therefore, having the help of a tool like EasyAP, which complies with standards and optimizes accounting and financial processes, is vital. Contact us and find out more.
