The EU defines e-invoicing as the exchange of an electronic invoice document between a supplier and a buyer.

Understanding e-Invoicing The EU defines e-invoicing as the exchange of an electronic invoice document between a supplier and a buyer. An e-Invoice is an invoice issued, transmitted, and received in a structured data format, allowing automatic and electronic processing, as defined in Directive 2014/55/EU.

 

How does e-Invoicing differ from the SaaS model of Space Invoices? Space Invoices API is an ideal tool for automating your invoice issuance in a legal, comprehensive, and easy-to-read format, whether you choose to deliver it via email or traditional mail. E-Invoicing, however, involves automatic creation and acceptance of invoices on both the seller and buyer's side, with data formatted in a commonly accepted digital specification.

 

E-Invoicing eliminates the need for paper as it requires the e-invoice to be created in the correct structure (following EU EN16931 standard) and securely transferred from one party to another. Currently, it's implemented at the Business-to-Government (B2G) and Government-to-Government (G2G) levels, with future uses (Business-to-Business, Government-to-Citizen, and Business-to-Consumer) still under development.

 

Here are five ways e-Invoicing can benefit your business:

1. Eliminate Paper Clutter and Archival Needs Save on paper, printer maintenance, and labor hours required to prepare an invoice. Corrections are simple, without the need for tracking version updates or re-filing physical copies.

2. Reduce Delivery Fees E-Invoicing eliminates the middleman, reducing the cost of postage and processing as the invoice goes directly into the buyer's accounting system.

3. Enhance Security and Traceability While security standards are being decided upon by EU member states, some have started implementing security protocols to ensure safe transmission and storage of invoicing data.

4. Simplify Design No need for additional expense on designing visually appealing invoices – focus straight on the numbers!

5. Facilitate Invoice Acceptance and Review E-Invoices are received and accepted instantly, potentially leading to faster payments.

Our Space Invoices Team is keeping up-to-date with the latest trends in e-invoicing to adapt the technology as soon as it becomes viable for our customers. We're always happy to discuss additional customizations to meet your needs!

Additional reading:

• 3 Best White-Label Invoicing APIs for B2B SaaS, Fintech, and Neobank Platforms
• Ask Your Developer: Key Insights for the Build vs Buy Debate in Invoicing API
• Bosnia and Herzegovina Implements VAT on Non-Resident Digital Service Providers