5 surprising facts about the future of E-invoicing

New electronic invoicing and VAT regulations in Europe and beyond are forcing businesses to fundamentally rethink how they handle business transactions. What may seem like a technical change is in fact a fundamental transformation, redefining the way businesses, governments, and data interact.

The established rules of commerce are being rewritten in real-time

Despite the EU's goal of a harmonized single market, the reality of e-invoicing implementation is one of profound fragmentation. Member states do not have a unified approach, instead they are building wildly different systems, creating a complex and challenging patchwork for any business operating across borders. A "one-size-fits-all" approach to European e-invoicing is practically impossible.

Based on insights from leading tax authorities, industry analysts, and technology pioneers, we've narrowed down five crucial takeaways. These will change how you think about e-invoicing, moving your focus from the immediate challenge to the long-term strategic opportunity.

Fact 1: Electronic invoicing is about compliance first

A decade ago, e-invoicing projects sold themselves on faster cycles and lower AP (Accounts Payable) costs. Today, the driver is tax policy, plain and simple: close the VAT gap and get transaction data in near real time. The EU’s VAT in the Digital Age (ViDA) reform explicitly targets fraud reduction and modernized reporting. The EU’s VAT gap is still tens of billions of euros annually, which explains why administrations are pushing hard for structured, reportable data.

Fact 2: There is a difference between E-invoicing and E-reporting

The term “e-invoicing” is often used as a catch-all, covering related areas like e-reporting. In practice, however, regulators across Europe treat these concepts differently. So, what sets them apart?

✅ E-invoicing describes the exchange of a legally valid invoice in a machine-readable format between business partners

Depending on the jurisdiction, the invoice has to tick off all the requirements regarding content, format, how it is transmitted, and more.

✅ E-reporting refers to the transmission of invoice data to the tax authority

Here too, requirements vary widely across jurisdictions. Some countries demand additional information. France, for example, requires reporting on the processing status of an invoice (acknowledged, in progress, rejected, etc.). Timelines also differ: in certain markets, reporting and clearance must happen before an invoice is officially issued, while in others it can be done simultaneously or shortly after issuance.

Fact 3: Your PDF invoice is obsolete

A common misconception is that emailing electronic documents such as a PDF or word document counts as “e-invoicing.” Under today’s regulations, it does not.

A PDF is only a human-readable electronic document, it does not contain machine-readable data in a structured format. As the Belgian tax authority pointedly noted  at the E-Invoice Exchange Summit in Vienna (September 2025), relying on PDFs and OCR is nothing more than "the inefficient way of digitalization."

This misconception creates significant and often overlooked compliance risks, especially when it comes to receiving obligations.

Germany is the clearest example. While the obligation to issue structured e-invoices will be phased in between 2027 and 2028, a more immediate requirement is already in force: Since January 1, 2025, it is mandatory for every single company in Germany to have the capability to receive structured electronic invoices that comply with the EN16931 standard.

The impact is profound. Many companies believe they have years to prepare, not realizing their legal obligation has already begun. If a supplier decides to send a compliant structured e-invoice, the recipient is required by law to be able to process it.

The grace period for sending paper or PDF invoices is a transitionary measure. The future of B2B invoicing is a structured data format, and the legal requirement to handle it is arriving much sooner than most businesses think.

Fact 4: National models for electronic invoicing diverge by design

Despite the EU's goal of a harmonized single market, the reality of e-invoicing implementation is one of profound fragmentation. Member states are not marching forward in a well aligned way. Yes, ViDA will harmonize some rules over time. But if you operate across borders, the reality (for now) is a patchwork of different requirements. For example:

• E-invoicing in Poland 🇵🇱
  KSeF, a centralized clearance model. Mandatory KSeF starts Feb 1, 2026 for large businesses (>200M PLN per year), Apr 1, 2026 for others. Every invoice is routed through the central state platform.
• E-invoicing in Belgium 🇧🇪
  A decentralized e-invoicing mandate building on PEPPOL. From January 1, 2026, domestic B2B invoices must be structured and exchanged via the networked “4-corner” model (with e-reporting to follow from 2028).
• E-invoicing in France 🇫🇷
  Exchange flows through certified private platforms (PAs) with data also routed to a public portal (PPF). Large businesses (>50M EUR per year or >250 employees) must be able to send and receive e-invoices and report international B2B transactions from Sept 1, 2026. All other businesses need to be able to receive e-invoices from Sept 1, 2026. After Sept 1, 2027 businesses of all sizes need to send, receive and report e-invoices in the same fashion. 

As you can see, there is no single playbook. A multi-country roadmap must respect local requirements while anticipating ViDA’s cross-border digital reporting from 2030.

Fact 5: Decentralized does not mean free-for-all, it means smarter rules

When governments like Belgium's choose a decentralized model like Peppol, it's easy to misunderstand it as a less regulated, free-market approach. The opposite is true. Decentralized networks are not about the absence of rules, instead they are built upon a powerful, common set of rules that guarantee interoperability for everyone.

This stands in direct opposition to the old world of bilateral EDI agreements, which often failed because they created closed systems and market inefficiencies. As the Belgian Federal Public Service Finance argues, an unregulated environment does not lead to freedom, but to dominance by the most powerful players.

Without rules, the strongest players set the rules. Large companies can impose proprietary invoicing systems on smaller suppliers, leaving them with little choice but to comply or lose business.

Open networks like Peppol turn this dynamic on its head. Much like the international telephone system, Peppol enables interoperability: as long as everyone follows the standard, any participant can connect with any other, regardless of provider or infrastructure. It’s a powerful example of how smart regulation doesn’t restrict economic freedom, it protects it, ensuring a healthier, more competitive market for all.

Are you ready for what's next in electronic invoicing?

E-invoicing is far more than a technical requirement or a back-office project. It is a fundamental paradigm shift in compliance, data intelligence, and the very nature of business-to-government interaction. The companies that thrive will be those that look beyond the immediate deadlines and see the deeper transformation taking place.

And the change doesn’t stop with invoices. As structured, real-time data flows become the norm, the question is: which business documents will follow? From purchase orders to payment confirmations, e-invoicing is only the beginning of a much larger digital ecosystem.

At fiskaly, we are closely monitoring e-invoicing and fiscalization developments across Europe to support businesses in navigating these rapid changes.