The electronic invoicing in Europe is not only a reality, but also an obligation. In fact, being part of the EU means that many legislations are common to all EU member states. The case of online invoicing is no exception. Likewise, all European public administrations are now required to use it. However, despite the existence of a common legislative framework, each state has its own national regulations in this regard. From easyap we review how electronic invoicing is in Europe at the moment and what differences exist between the different countries.
Which countries are currently using electronic invoicing in Europe?
All of them. Since the standard became effective in April 2020, any public administration is obliged to use electronic invoicing in Europe. This is regulated in accordance with Directive 2014/55/EU and pursues three main objectives:
- Continuing the digital transformation of the entire of the entire continental business fabric and take advantage of the numerous benefits offered by the online world.
- To be able to contribute to a better traceability of corporate taxation in the different euro countries and thus combat tax evasion, which is still a problem for many nations today.
- Reducing trade barriers between EU countries.
Until very recently, there were different regulations and requirements between countries, and the difficulties and obstacles that arose in cross-border transactions without digital invoicing were much greater than they are today. However, with this regulation, certain barriers have been eliminated.
In addition, as the governments of governments of European Union countries are implementing e-invoicing As the governments of the European Union countries implement electronic invoicing in public processes, more and more private companies are using and standardizing it. Likewise, B2B e-invoicing B2B e-invoicing organizations in Europe. What's more, the B2B online invoicing has its own regulation, as it is compliant with the directive 2010/45/EU. It also stipulates relevant issues such as EDI systems or the validity of digital signatures.
Status and latest news on electronic invoicing
Apart from EU regulations, each country has its own internal regulations. From easyap we are aware of this because we have carried out projects in Europe as well as in many other countries. So, in the following, we are going to discuss how e-invoicing is legislatively in Europe based on both current regulations and our own experience.
Germany
Despite being one of the continental powers and one of the most advanced nations on the planet, for the moment it only requires electronic invoicing in the public sector. electronic invoicing in the public sector. Let's remember that it is a federal republic, so each state decides its policies independently.
Belgium
In Belgium, the electronic invoicing B2G (with governments) has been mandatory for almost ten years. Specifically, since 2013 and it is so both for the Administration and for its suppliers. As for B2B e-invoicing, its intention is to make it mandatory by 2023 by looking at regulations in other European countries.
Cyprus
Since the beginning of 2022, electronic invoicing B2G is mandatory in this Mediterranean island. Therefore, any operation carried out by a company with the Public Administration will require electronic invoicing. However, this is still a very recent political measure.
Denmark
In Denmark, an innovative country at the forefront of technological advances, electronic invoicing is currently only mandatory for public administrations and their suppliers. But it has been so for a long time. Specifically, since 2005.
Spain
The electronic invoicing is mandatory for the Public Administration and in transactions between its subcontractors and contractors when the value of these transactions exceeds 5,000 euros. In the B2B area, it is already in process the Crea y Crece Law, so important for implementing digital invoicing among companies and businesses of all kinds.
Finland
The e-invoicing in Finland is widespread. Since 2010 all Public Administrations prefer to receive digital invoices, although it has not been mandatory until 2020 due to European regulation. In the private sector, something similar happens, since, despite not being mandatory by law, it is used in many companies.
France
In France, electronic invoicing has been has been in use since 1990. However, since 2020 it has been mandatory for the Public Administration in its relations with its suppliers. In addition, it seems that between 2024 and 2026 it will also be applied to other companies, revolutionizing the private sector.
Italy
The transalpine country has an electronic invoicing system (the SDI) which has served as a reference for many countries in Europe. To be more specific, since 2014 the electronic invoicing for Public Administrations, (called FatturaPA), has been is mandatory and in 2019 it was also established as such for private companies.
Luxembourg
One country with a particular tax and fiscal system is Luxembourg. Regarding its electronic invoicing, it has a national regulation of 2021 by which it obliges all companies to issue electronic invoices to governmental institutions through all companies to issue electronic invoices to government institutions through PEPPOL. PEPPOL. It is being implemented progressively, starting with large companies and ending with SMEs in 2023.
Norway
In the Scandinavian country, any company must file its tax returns as of 2022 through a new system based on tax return from 2022 onwards through a new system based on accounting information.. For this purpose, the following tax codes will be used SAF-T. In turn, this system allows the company to file the tax return from its own ERP.
Portugal
Our Portuguese neighbors are updating at a rapid pace. As of this year a QR code including all company information is mandatory on all electronic invoices and, as of this summer, they have to be validated with a digital signature. and, as of this summer, they have to be validated with a digital signature. In addition, from 2023 onwards, all e-invoices and tax documents must include the ATCUD code (Code Validation Number Sequential).
Poland
We list Poland because it has one of the most one of the most particular e-invoicing systems in Europe. Since 2021, e-invoicing has been voluntary and from 2023 it will be mandatory, both between private companies and with the corresponding administration. In turn, it is the Administration who validates each transaction and for this purpose the government has set up theNational Electronic Invoicing System (KSeF).
Romania
To cite the situation of one of the least developed countries in Europe, let us take the case of Romania. Specifically, since 2021, electronic invoicing has been mandatory for public administrations and Romanian companies. And, in addition, from 2022 it will oblige any company to issue its electronic invoices through the SAI system. electronic invoices through the SAF-T system.
E-invoicing in Europe vs. the rest of the world
And compared to the rest of the world, what is the e-invoicing landscape like? To answer this, let's comment on the state of some of the most powerful countries on the planet. Or, at least, with the most emerging ones.
Australia (and New Zealand)
Australia initiated together with New Zealand its e-invoice idea in 2018. Following this digitizing strategy, in recent years it has promoted its use among private and public companies. However, since this year there is a mandatory scheme whereby government agencies must implement e-invoicing.
Brazil
Brazil is the the most powerful issuer of electronic invoices in Latin America.. At the same time, it is world leader in the issuance of electronic fiscal documents through its different through its different electronic invoice models. Likewise, the Brazilian system is one of the most consolidated systems on the planet and it is a country where electronic invoicing is 100% mandatory, as is the electronic signature.
China
For the Asian giant, this is a time of change. For now, electronic invoicing is is only mandatory for new taxpayers and only in the case of B2C (direct customer sales) and B2B. (direct customer sales) and B2B. For all other companies it is voluntary.
United States
It is a highly digitized country, but it does not have a unified legal framework for e-invoicing. does not have a unified legal framework for electronic invoicing. There is no single, state-level law, so there are many state agencies that do seek to provide legal solutions in this area. At the same time, there are multiple different billing platforms and systems are used, for both B2G and B2B.
India
Still a developing country, India stands out as a technological powerhouse, as well as an emerging one in many other fields. In 2019, it also implemented a plan to plan to include electronic invoicing in a phased manner. Right now it is in the process of mandatory massification. The aim is to combat major accounting problems in the country, such as complex tax returns for companies, high tax evasion and improve communication between organizations.
In conclusion, we can only give you one recommendation: digital transformation and electronic invoicing are both a reality and a necessity.. Not only in Spain, but all over the world. In fact, in a few years it will be mandatory in any field and not only in B2G. Our experience implementing accounting and technological solutions in several companies in many parts of the world can help you take the step you need to take.. Shall we talk about it?
