E-invoicing reform in Europe

Summary

• The European Commission has launched a public consultation to revise Directive 2014/55/EU on e-invoicing in public procurement (B2G).

• The goal is to improve harmonisation and reduce cross-border complexity.

• The initiative is linked to VAT in the Digital Age (ViDA) and future B2B e-invoicing requirements. Under ViDA, mandatory cross-border B2B e-invoicing is expected by 2030.

• Businesses should start preparing for increased standardisation and digital reporting.

The European Commission has recently launched a public consultation on the revision of Directive 2014/55/EU, the framework governing electronic invoicing in public procurement (B2G). While this may initially appear to concern only government-related transactions, the implications are likely to extend far beyond, influencing the broader evolution of e-invoicing across Europe.

Understanding the EU e-invoicing Directive (2014/55/EU)

Directive 2014/55/EU, adopted by the European Parliament and Council on 16 April 2014, establishes a common European standard for electronic invoicing in public procurement (business-to-government, or B2G, transactions). The Directive’s primary objective is to reduce administrative costs, promote the Digital Single Market, and facilitate seamless cross-border invoicing by obliging all public contracting authorities to receive and process compliant e-invoices.

At the heart of the Directive lies EN 16931, the European Standard published by the European Committee for Standardization (CEN). This defines the semantic data model (i.e., the data that must be included in an invoice) and supports syntax bindings like UBL and CII to ensure interoperability and guarantee that invoices can be read by machines across EU systems without the need for manual rekeying.

The implementation timelines were clear: Member States had to transpose the Directive by 18 April 2018, with central authorities required to comply by 18 April 2019 (although some were granted an extension to 18 April 2020 for sub-central bodies). Today, almost all EU public bodies must handle EN 16931-compliant e-invoices, paving the way for networks like Peppol.

While this framework does not mandate business-to-business (B2B) e-invoicing, which is expected to be in place by 2030 via ViDA, it has driven widespread adoption, saving an estimated 60-80% on processing costs while reducing errors and fraud.

Why this consultation matters

This framework has now been in place for several years following the final compliance deadline for sub-central authorities in 2020, and has successfully established a common standard for public procurement.

However, as digital transformation accelerates and cross-border trade becomes increasingly seamless, the current framework is showing limitations. The new consultation aims to:

• Improve harmonisation of e-invoicing standards across Member States.

• Enhance interoperability between different national systems.

• Reduce administrative burdens for businesses operating internationally.

• Support the development of a more integrated digital single market.

For companies working across borders, these improvements could significantly reduce complexity and operational costs.

The link to ViDA: A broader transformation

This consultation is particularly relevant in the context of the upcoming VAT in the Digital Age (ViDA) initiative. ViDA represents a major shift in how VAT is managed within the EU, with a strong focus on digital reporting and real-time data exchange.

One of the key proposals under ViDA is the introduction of mandatory electronic invoicing for cross-border B2B transactions by 2030. While the current consultation is focused on B2G processes, it is widely expected to influence future regulatory developments in the B2B space as well.

In practical terms, this means that businesses should not view this as an isolated regulatory update, but rather as part of a broader move towards fully digital, standardised invoicing across Europe.

What this means for businesses

For organisations already using e-invoicing solutions, the upcoming changes may require adjustments to ensure continued compliance with evolving standards. For those that have not yet adopted digital invoicing, this is a clear signal that the transition will soon become unavoidable.

Key considerations include:

• Ensuring systems are compatible with European standards (such as EN 16931).

• Preparing for increased automation and real-time reporting requirements.

• Evaluating current invoicing processes to identify inefficiencies.

• Partnering with technology providers that can adapt to regulatory changes.

Banqup is already designed to support businesses through these transitions, offering scalable tools that align with both current and future regulatory frameworks.

An opportunity to shape the future

The consultation is open for feedback until 10 June 2026, providing businesses of all sizes (particularly SMEs), industry stakeholders, and technology providers with a valuable opportunity to influence the future of e-invoicing in Europe.

Engaging in this process allows organisations to:

• Highlight current challenges in cross-border invoicing.

• Advocate for more practical and efficient standards.

• Ensure that future regulations reflect real business needs.

Final thoughts

The revision of the e-invoicing Directive marks another important step in Europe’s digital transformation journey. While the immediate focus is on public procurement, the broader implications for B2B transactions and VAT compliance cannot be ignored.

Businesses that take a proactive approach by understanding these developments and preparing early, will be best positioned to benefit from a more streamlined, efficient, and digital invoicing landscape.

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