Mandatory electronic invoicing has become increasingly prevalent in Europe in recent years, with a number of countries embracing this method to modernise and simplify their invoicing processes. The transition to e-invoicing has been gradual but steady, with a range of European nations passing legislation and regulations to encourage the uptake of mandatory e-invoicing.
In this article, we will explore the challenges and transformations encountered by countries as they endeavour to adopt the most effective models and systems.
Northern Europe
The tax authorities of Denmark, Finland, Iceland, Norway and Sweden are conducting the last stage of a pilot programme to exchange VAT invoices in compliance with the ViDA project.
Its main purpose is to address and understand the technical challenges associated with cross-border transaction reporting. Moreover, the project integrates a CTC model based on PEPPOL.
Eastern Europe
Hungary
The introduction of eVAT, a new digital system for recording VAT transactions, is currently under public consultation to simplify the process of reporting VAT and provide taxpayers with analytical tools.
It will take effect on January 1st, 2024 and will be accessible to all resident and non-resident businesses.
Slovakia
The timeline for implementing the B2G e-invoicing project has been extended again, now planned for the first quarter of 2024. Expected to be mandatory for Ministry of Finance and Datacentrum, working in partnership with their respective suppliers, as well as budgetary organizations that are associated with the Ministry of Finance, such as the Financial Administration, together with other public and government administration entities.
Croatia
The Ministry of Finance has formally requested permission from the EU to introduce mandatory B2B e-invoicing, in accordance with the guidelines of the Fiscalization 2.0 project, starting on January 1, 2026.
If approved, the eAccount system for B2B e-invoicing will be implemented alongside digital reporting for domestic transactions across the entire Croatian territory.
Romania
The legislative framework for B2B e-invoicing has been approved after months of dedicated work. The system is applicable to both resident and non-resident companies. The proposed timeline is as follows:
- Starting from January 2024, a real-time invoice submission system will be implemented, running from January 1 to June 31. This submission process will be carried out via the Romanian Electronic Invoicing System (RO e-invoice) within the Virtual Private Space (SPV).
- From July 2024, the submission of electronic invoices for pre-clearance via the eFactură platform will be obligatory.
Estonia
The Ministry of Finance is revising the Accounting Act to enable residents to request electronic invoices from their suppliers. The definition of an e-invoice will be adjusted to align with the structured format EN 16931. The implementation date for this change, expected to be around 2025, has not yet been confirmed.
Western Europe
Germany
Over the last few months, it has been officially confirmed that as from 1 January 2026, the obligation of B2B e-invoicing will be mandatory, affecting all taxpayers engaged in B2B transactions throughout the country.
In response to this confirmation of compulsory B2B e-invoicing, the Federal Ministry of Finance (MoF) has released more information regarding their strategies for carrying out business-to-business e-invoicing, with a particular emphasis on utilising the XRechnung and ZUGFeRD formats. The document highlights the following key points:
- Invoices must comply with EN-based formatting requirements when using XStandard formats and ZUGFeRD version 2.0.1.
- It stresses the necessity to make technical modifications to the legal framework for enabling the practicality of electronic data interchange (EDI) processes.
France
On 17th October 2023, the Direction Générale des Finances Publiques suggested an amendment to the current Finance Bill, intending to establish a fresh schedule for enforcing compulsory B2B e-invoicing and B2C e-reporting. The updated schedule will be as follows:
- Spring 2024: The authorization of e-invoicing representatives for the Partner Dematerialization Platform (PDP) will be completed. Work will proceed concurrently on finishing the Portail Public de Facturation (PPF) throughout the remainder of this year.
- A comprehensive pilot programme will be conducted in 2025, followed by phase 1 which will start in September 2026. At this stage, all taxpayers should be ready to receive electronic invoices issued by large and medium-sized companies.
- Finally, phase 2 will start in September 2027, and small businesses, including SMEs and TPEs, must be ready to issue electronic invoices.
Belgium
The Belgian Council of Ministers has approved new legislation mandating structured e-invoicing for B2B transactions effective as of January 1, 2026.
As for B2G (Business-to-Government) e-invoicing, the obligatory use for public procurements below €30,000 will be postponed until March 2024. Conversely, contracts valued at less than €3,000 may be exempt from this requirement, subject to the discretion of each government agency.
Southern Europe
Italy
From 1 January 2019, e-invoicing became mandatory for B2B and B2C transactions involving Italian businesses with an annual turnover of more than €65,000. As of July 1, 2022, this directive applies to small taxpayers and non-professional sports associations.
Starting January 1, 2024, businesses with an annual turnover below €25,000 will also be subject to the electronic invoicing regulations of the Sistema di Interscambio.
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