E-bills without borders

At the end of the 2000s, Latin America was the first region to prescribe the use of electronic invoicing. The „Clearance” tax control model (real-time verification of invoices by the local tax authority) was used.

With the „Electronic invoicing for public contracts“ directive, the EU set itself the goal of making electronic invoicing the most widely used method in Europe by 2020. In support of this directive, several countries have issued regulations that oblige suppliers to send their invoices to public administrations electronically.

Italy has gone one step further and is the first EU member state to introduce electronic invoicing in the B2B (Business-to-Business) and B2G area (Business-to-Government) mandatory for Italian companies. 

Duty instead of freestyle

Other countries, including France, Poland, Spain and Germany, have followed Italy's example and are planning to make electronic invoicing mandatory in three years at the latest.

This dynamic is being reinforced by the ViDA (VAT in the Digital Age) initiative. The EU reform package aims to harmonize and modernize VAT returns across the EU through real-time digital declarations and the obligation to issue invoices electronically.

With the increasing introduction of electronic invoices by governments and companies, the pressure on companies to send their invoices digitally to secure business relationships and payments is growing. The ever-increasing number of regulations, formats, platforms and certificates makes compliance a very complex undertaking. In addition, the deadlines between the publication of legislation and its implementation are often tight - while the density of regulation is constantly increasing.

Initiatives such as Peppol - a Europe-wide network for the standardized exchange of electronic documents - have been driven forward to standardize public procurement and simplify the exchange of data between companies and authorities. In the B2B sector, however, compliance remains complex as each country develops its own systems and specifications. Waiting is not an option: those who hesitate when it comes to e-invoicing risk being left behind.

E-bill on the rise

According to the Billentis report „Watch the tornado!“ - a regularly published market analysis on electronic invoicing and tax compliance - the global invoice volume (digital and paper) is estimated at around 560 billion per year. Around 125 billion of these are currently transmitted electronically.

The global market value for e-invoicing and related solutions was estimated at EUR 8.3 billion in 2024 and is expected to rise to EUR 22.2 billion by 2028 (which corresponds to an average annual growth rate of almost 28 percent).

This growth is being driven by the expansion of regulatory requirements, the digitalization of processes and initiatives such as ViDA in Europe, which aim to harmonize and modernize VAT administration and e-invoicing at European level. Initially driven by the private sector, the development is now being massively driven by governments. The VAT deficit in particular is seen as a key driver for the digitization of trade, tax, accounting, warehousing, distribution and logistics documents.

More and more companies are replacing their costly paper-based invoicing processes with more cost-effective and efficient solutions for transmitting and archiving electronic invoices. Companies are tapping into new efficiency potential - from fewer errors and time and cost savings to faster payments. However, uncertainties regarding tax compliance are slowing down the widespread use of e-invoicing.

A solution for global e-invoicing 

It is crucial for companies to choose a solution that meets their specific requirements. Those who rely on multiple providers to comply with local regulations in different countries are often faced with complex specifications and a high level of coordination. The challenge today is to work with a provider that offers an integrated and comprehensive solution from a single source.

Why a global e-invoicing solution is worthwhile

More transparency: Internationally active companies need a central overview of all invoices sent worldwide - even at the level of individual subsidiaries. Multi-user access also promotes collaboration in accounts receivable management (AR).

Local compliance: companies must comply with country-specific regulations to avoid penalties: Companies must comply with the various regulations of the countries in which they operate in order to avoid penalties - for example by issuing invoices in XML format or by connecting to tax authority platforms such as Peppol, Chorus Pro in France, SDI in Italy or FACe in Spain.

Acting with foresight: As e-billing regulations are constantly changing, companies need to keep an eye on regulatory developments to ensure they can respond quickly to the new requirements.

Global platform from Esker

The global processing and sending of compliant electronic invoices requires flexible solutions. The software provider Esker supports companies in processing different formats - such as PDF, XML, UBL or country-specific standards such as Peppol BIS and Peppol PINT, Facturae, Fattura-PA, XRechnung, Factur-X - and ensuring the connection to public platforms such as Chorus Pro, FACe, SDI or Peppol. This means that invoices can not only be transmitted, but their status can also be tracked transparently.

Esker's cloud platform supports companies in meeting global compliance requirements in electronic invoicing. It uses technologies such as electronic signatures, time stamps and verifications in over 60 countries as well as BCAT with the Esker audit trail and EDI. In addition, Esker offers legally compliant archiving solutions that meet local and international requirements.

With technical expertise and in-depth market knowledge, Esker continuously adapts its solution to new legal requirements and supports companies in navigating the complex world of electronic invoicing. Electronic invoicing is only one part of the development. The trend is clearly moving towards complete digitalization and automation of interaction with authorities. In some countries, such as Italy, companies are now obliged to accept orders electronically.

Esker's platform offers complete automation of source-to-pay and order-to-cash processes and supports global efforts to standardize exchanges between the private and public sectors.