E-invoicing Basics Explained (2025 Guide)
Governments across the globe are rolling out mandates, aiming for real-time tax oversight and fraud prevention. But while most businesses fear this shift, early adopters are already saving time, cutting costs, and getting paid faster.
-tn.jpg)
In this guide, we’ll break down what e-invoicing really is, why governments are pushing for it, and — most importantly — what it means for your business.
You'll also learn how fiscalization and real-time reporting are connected, and walk away with a clear plan to stay compliant and turn regulation into opportunity.
Let’s make it simple. Just the facts that matter:
What is E-invoicing?
E-invoicing is the automated creation, exchange, and processing of invoices—with no manual input.
At its core, it’s a piece of structured computer code—not human-readable, but easily converted into a visual format like a PDF. Still, PDFs are not e-invoices.
Here’s how it works:
Once received, the recipient’s software performs another compliance check, accepts the invoice, and automatically archives it. In some cases, the invoice can even be paid automatically.
Why Do Governments Care?
E-invoicing is becoming mandatory worldwide.
Most countries are starting with B2G transactions, while B2B adoption is accelerating. B2C e-invoicing remains rare for now, but many governments—especially in the European Union—have already set B2B e-invoicing deadlines, with some taking effect as early as this year. But why do governments care so much?
E-invoicing provides tax authorities with near real-time visibility into transactions, as all data flows through a mandated network—most commonly the Peppol network.
This level of control significantly reduces tax fraud and invoice manipulation. Since invoices are validated by both the sender’s and recipient’s software and automatically archived, tax audits become faster, easier, and more accurate.
Are There Any E-invoicing Benefits For Companies?
Many believe that mandatory e-invoicing means buying expensive software, or building it, and making business harder. But that’s far from the truth—e-invoicing actually benefits companies in multiple ways:
Some industries benefit even more, as they can unlock new revenue streams and strengthen their one-stop shop positioning by offering e-invoicing as a built-in feature.
What Is the Connection Between E-invoicing, Fiscalization and Real Time Reporting?
E-invoicing creates the invoice. Fiscalization ensures tax compliance. Real-time reporting gives authorities visibility.
Here’s how they work together:
What Should You Do?
The first and most important step is to check the e-invoicing regulations in the countries where you operate. Review both existing mandates and upcoming deadlines so you can plan ahead.
If e-invoicing is already mandatory, it’s wise to start with a low-cost solution to ensure compliance—then upgrade to a more robust provider later.
If it’s not mandatory yet, take the time to assess your company’s needs and explore the best approach for integration.
Start by defining your setup.
Do you need a standalone supplier? Or are you using a platform where most operations already happen—and now you just need an invoicing API to plug in?
Think about your market scope:
Are you operating locally, cross-border, or even globally?
Make sure the provider supports all the countries you operate in, with local compliance included.
Check for:
Since e-invoicing is still a developing field, be cautious.
New providers appear frequently, often without case studies or proof of regulatory compliance—which is mandatory in some regions.
Have your developer review the documentation and reach out to the provider’s support team to clarify any questions.
Finally, choose a provider with transparent pricing—ideally a mix of subscription and usage-based fees, so the cost scales with your growth.
Integrate E-invoicing In Less Than A Week
One way to comply with (e-)invoicing, tax, and reporting regulations globally is to use a provider like Space Invoices. We offer services for B2B Platforms, like SaaS, Neobank And Fintech as well as solutions for E-commerce.
You will be able to:
Do you have questions about achieving global compliance?
We are ready to help.
The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on April 17, 2025.
Additional reading:
Start issuing Invoices, free!
Signup and start issuing compliant invoices from your software in minutes.
Or contact us to get a free implementation consultation.