E-invoicing in Europe: accelerating towards compliance

E-invoicing is progressively becoming a legal requirement across Europe. Driven by initiatives such as ViDA and supported by standards like Peppol and Factur-X, EU member states are working towards harmonised systems. However, each country is progressing at its own pace and has its own specificities. This article provides an overview of the key obligations, formats and deadlines to help businesses prepare for this major shift.

E-invoicing in Europe: The Regulatory Landscape, Standard Formats and Compliance Challenges by 2030

Electronic invoicing is steadily becoming the norm throughout Europe. Led by national initiatives and European programmes such as ViDA (VAT in the Digital Age), this transition aims to modernise VAT management, combat fraud, and simplify business transactions.

However, with diverging national timelines, mandated formats, exchange platforms, and fiscal reporting requirements, companies must navigate a fragmented landscape. When anticipated effectively, however, this transformation can become a powerful driver of operational efficiency and competitiveness.

The pillars of e-invoicing in Europe

Peppol (Pan-European Public Procurement Online)

Peppol is a secure network that facilitates the standardised exchange of electronic documents, such as invoices and purchase orders, between companies and public administrations.

It is based on:

• A common format: Peppol BIS;
• A central addressing system;
• International interoperability, initially in B2G and progressively extended to B2B exchanges.

ViDA (VAT in the Digital Age)

Led by the European Commission, ViDA aims to digitise and modernise VAT processes. Key proposals include:

• Mandatory e-invoicing for intra-EU transactions;
• A harmonised invoice format inspired by Peppol;
• EU-wide standardised e-reporting.

Implementation is expected to take place between 2028 and 2030.

Common e-invoice formats

The role of e-reporting in reform

Alongside e-invoicing, e-reporting is becoming a key tool for tax authorities. It involves the automated transmission of invoicing data (including B2C and export transactions), often in real time or within a short timeframe.

Examples:

• Hungary: Real-time e-reporting since 2018;
• France: E-reporting will be integrated with mandatory e-invoicing from 2026.

For more information on terms such as:

• PPF (Public Invoicing Portal) ;
• PDP (Partner Dematerialisation Platform).

Please refer to our dedicated article on e-invoicing in France Here 

Country-specific obligations and timelines

European countries are progressing at different speeds. The following is a summary of current or upcoming obligations:

These divergences mean that businesses must adapt their compliance strategies for each country, while avoiding the pitfall of creating technical silos.

Zoom by country: practical details and technical requirements

Romania

From 1 January 2024, e-invoicing will be mandatory for all Romanian companies, regardless of their VAT status. The national RO E-Factura system uses a structured XML format and invoices must be submitted within five working days. From July 2024 onwards, only invoices submitted via the RO E-Factura system will be recognised for tax purposes in B2B transactions.

In the meantime, the RO E-Transport system is being expanded to cover international flows, and penalties will be introduced in July 2024.

✅ Sage X3 is fully compliant with this system : both outbound and inbound invoice flows are available in X3.

To learn more about e-invoicing in Romania :   Click here.

Discover the RO E-Factura system, Click here.

Poland

Mandatory e-invoicing will be introduced in Poland in July 2024 through the KSeF platform. This requires a structured XML format and centralised submission to the tax authority.

Businesses should start adapting their ERP systems now to ensure compliance.

Spain

Spain has announced that B2B e-invoicing will be mandatory from 2025–2026. While the final details are still to be confirmed, companies are encouraged to prepare for potential system adjustments.

The reform will rely on an interoperable model inspired by Peppol.

Hungary

Although e-invoicing is not compulsory in Hungary, real-time e-reporting has been required for all B2B and B2C invoices via the NAV system since 2018. This involves the immediate transmission of tax data via an API; the invoice itself is not sent.

RTIR (Real-Time Invoice Reporting) has been mandatory since January 2021.

✅ Compliant: RTIR 3.0 XML version is available in X3.

France

From 2026, France will extend mandatory e-invoicing and e-reporting to all businesses. Led by the DGFiP, the reform is built on a three-tier structure:

• The Public Invoicing Portal (PPF)
• Certified Partner Platforms (PDPs)
• A centralised directory

The timeline varies by company size, with SMEs required to issue e-invoices from 2027. Supported structured formats include Factur-X, UBL, and CII.

Sage, as a certified PDP, offers a fully integrated and compliant solution.

Read our article on e-invoicing in France Click here

Security, GDPR and interoperability

Cybersecurity and data protection

Digital invoicing raises critical concerns around confidentiality and security :

• Sensitive invoice data (prices, VAT and client identities) must be protected.
• Storage must comply with GDPR.
• There is a risk of fraud or identity theft via forged electronic documents.

Interoperability of formats and systems

Businesses must ensure that their ERP and invoicing tools:

• Support all required formats (Factur-X, UBL, CII);
• Are compatible with national systems (SDI, KSeF, RO E-Factura, etc.).
• Include connectors to PDPs or public portals.

What does it mean for businesses?

SMEs and microenterprises: A Unique Challenge

• Less prepared, often without a suitable ERP;
• Less informed about technical requirements;
• Need for greater support from partners or editors.

Integrators and ERP: a strategic role

• Centralise invoicing flows.
• Offer native e-invoicing connectors.
• Ensure ongoing updates to comply with regulatory changes.

How can you prepare effectively?

Here is a checklist to guide you through the transition to e-invoicing:

✅ Identify the countries relevant to your transactions.
✅ Map your invoicing flows (clients, suppliers, B2B, B2C, etc.).
✅ Check ERP compatibility (e.g. Sage X3) with the required formats.
✅ Select a certified Partner Dematerialisation Platform (PDP).
✅ Train your teams and adjust internal processes.
✅ Anticipate e-reporting requirements (e.g. export, B2C).

Looking Ahead: Towards European Harmonisation?

The ViDA initiative plans to deliver the following by 2028–2030:

• Aunified invoice format inspired by Peppol BIS;
• standardised VAT reporting across Member States;
• Interoperable platforms across borders.

These plans represent a unique opportunity to simplify, automate and secure invoicing processes across Europe.

In the meantime, the diversity of systems requires a country-specific approach without creating isolated technical architectures.

In conclusion:

The shift towards electronic invoicing across Europe is both essential and transformative. It requires:

• Technical investment;
• Ongoing regulatory monitoring;
• Aa tailored strategy for each jurisdiction.

However, it can also boost performance, compliance and competitiveness.

As a certified Sage partner, we will support you throughout this transformation by providing you with tailored diagnostics and an integrated solution that will enable you to manage your compliance obligations with confidence.

Contact us today to arrange a personalised assessment and customised deployment plan.