e-Invoicing in Europe
In the European Union, Directive 2014/55, published on April 16, 2014, establishes a European standard for electronic invoicing that ensures interoperability among the different member states and, therefore, facilitates public procurement and cross-border e-commerce.
Today, the majority of Member States have already implemented mandatory B2G e-invoicing. Others are in the process.
In recent years, mandatory models of B2B electronic invoicing have begun to proliferate, aiming to digitize transactions between companies.
Electronic Invoicing in Spain
In this video, we analyze the electronic invoice model in Spain in compliance with the "Crea y Crece" Law, approved in September 2022.
B2B e-Invoicing in Germany
All companies must be able to receive electronic invoices starting from January 2025. Sending e-invoices will become mandatory, starting in January 2027, for companies with more than 800,000 € turnover and in January 2028 for companies with less than 800,000 € turnover.
B2B e-Invoicing in France
The government has established a gradual adherence timeline for the new invoice issuance and e-Reporting system based on a company's size.
e-Invoicing in North America and LATAM countries
Regarding the United States, the Business Payments Coalition along with the Federal Reserve is piloting a standardized B2B electronic document exchange system. The Digital Business Networks Alliance is the legal entity to oversee the new electronic exchange network. It is based on the exchange of electronic invoices through a Four-Corner Network Model, in which electronic documents are sent and received through Access Points that connect network users.
Latin America is the most advanced region in the implementation of electronic invoicing. There, this system has become a tool to improve fiscal control and mitigate high rates of tax evasion. In countries as significant as Mexico, Brazil, or Chile, the electronic document is already used in 100% of commercial operations.
Mexico: What is the Bill of Lading?
Carta Porte (Bill of Lading Complement) is the complement defined by the SAT that must accompany the Digital Tax Receipt by Internet (CFDI) from January 2022. The new complement will affect all taxpayers that transport goods and merchandise in Mexican territory by land, sea, air, train or federal highways.
e-Invoicing in Latin America
lectronic invoicing in Latin America has been widely adopted for years, with each country having its own tax systems and regulations in place. Countries like Argentina, Brazil, Chile, and Mexico have mature systems, while others are in the process of adoption.
e-Invoicing in Colombia
Since 2019, electronic invoicing has been mandatory for all companies with a presence in the country. Since then, the DIAN (National Directorate of Taxes and Customs) has been making advancements in the electronic invoicing system by introducing new mandatory documents or modifying existing ones.
e-Invoicing in the APAC Region
The adoption of e-Invoicing in the Asia-Pacific region varies across countries. Some countries in APAC, such as Singapore and Australia, have made significant progress in e-Invoicing adoption by implementing national frameworks and initiatives to promote its use.
Other countries, such as Malaysia, are implementing mandatory B2B e-Invoicing as of August 2024 in a staged manner.
Among the most commonly used models by Asian countries, Peppol is gaining ground. Peppol can be used for the exchange of electronic documents in Japan, Singapore, Australia, and New Zealand.
e-Invoicing in Singapore
GST-registered businesses will be required to use the InvoiceNow platform to transmit invoice data directly to the tax authority.
e-Invoicing in Malaysia
The mandatory electronic invoicing will begin in August 2024 for taxpayers with an annual turnover exceeding 100 million MYR.
e-Invoicing in Israel
The implementation of e-invoicing in Israel for invoices above 25,000 Shekels (approx. 6,100 €) started on May 5, 2024.
e-Invoicing in the MENA Region
In recent years, several initiatives and projects have been launched across the MENA region to promote e-Invoicing adoption and streamline invoicing processes. These initiatives are driven by both government efforts to modernize tax systems and business needs to improve operational efficiency.
Egypt and the Kingdom of Saudi Arabia are the most advanced countries in e-Invoicing implementation. Other countries, such as the United Arab Emirates, Oman, and Bahrain are following KSA's path and already working on their electronic invoicing mandates and frameworks.
e-Invoicing in Africa
In recent years, the vast majority of African countries have initiated plans for the digital transition of their administrations. There is no continental legislation in place to standardize the use of electronic invoicing on the continent.
However, there's a predominant implementation model throughout Africa, the Virtual Fiscal Device (VFD) system. Virtual Fiscal Devices are electronic systems connected to tax administrations to send electronic invoices. Uganda, Zambia, Tanzania, Chad, Rwanda, and Benin are some of the countries that have opted for the use of VFDs.
