In recent years, the European Union has been actively promoting the adoption of electronic invoicing (e-Invoicing) across all its member states. The aim is to reduce the administrative burden and costs associated with paper-based invoicing and improve the efficiency of business-to-business (B2B) transactions. In this blog post, we will discuss the European B2B e-Invoicing regulations that are set to come into effect in 2028.
The EU Directive, introduced in 2014, sets out the framework for adopting a common e-Invoicing standard across all member states. The directive aims to ensure that all public sector entities in the EU can receive and process e-Invoices in a standard format. It also encourages the private sector to adopt e-Invoicing by creating a level playing field and ensuring that e-Invoices are recognized as legally binding documents.
Standardized e-Invoicing
The European B2B e-Invoicing regulations set to effect in 2028 build on the existing directive and will require all businesses in the EU to use a standardized e-Invoicing format when invoicing other companies. The new regulations will apply to all B2B transactions within the EU, regardless of the location of the businesses involved.
The new regulations will require businesses to use a specific data model and syntax for their e-Invoices. The chosen data model and syntax will be based on the existing European standard for e-Invoicing, which is currently being developed and refined by the European Committee for Standardization (CEN).
Benefit from the new regulations
One of the key benefits of the new regulations is that they will facilitate cross-border trade within the EU by providing a standardized and interoperable platform for businesses to exchange invoices. This will help to reduce the administrative burden and costs associated with cross-border invoicing and improve the efficiency of B2B transactions across the EU.
Another benefit of the new regulations is that they will help to reduce the risk of fraud and errors in invoicing by providing a standardized and secure platform for businesses to exchange invoices. This will help to increase the accuracy and reliability of financial data and improve the overall financial management of companies across the EU.
Start preparing for the e-Invoicing regulations
To ensure that businesses can comply with the new regulations, the European Commission has launched several initiatives to promote the adoption of e-Invoicing. These initiatives include the establishment of a European e-Invoicing service provider (ESPD) registry, which will provide businesses with a list of certified e-Invoicing service providers that meet the requirements of the new regulations.
The new European B2B e-Invoicing regulations set to effect in 2028 represent a significant step towards adopting a standardized e-Invoicing framework across the EU. By facilitating cross-border trade and improving the efficiency of B2B transactions, these regulations will help to reduce administrative burdens and costs for businesses while promoting more remarkable accuracy and reliability in financial management. Companies should start preparing now to ensure they can comply with the new regulations when they come into effect.
The e-Invoicing platform
The Routty e-Invoicing platform can process and send invoices in any format and through any channel. This is a game changer for businesses of all sizes. With the ability to seamlessly convert invoices to the preferred format of the recipient and transmit them through the channel of their choice, the platform saves time, streamlines operations, and reduces errors while compelling automatically with the EU e-Invoice regulations.
Furthermore, the convenience of accessing all invoices through a single platform enhances visibility and simplifies record-keeping. The Routty platform can significantly improve the efficiency and accuracy of invoicing, and free up time and resources for businesses to focus on their core operations.