E-invoicing is coming: prepare your business now

In this article, you can find out what e-invoicing is, what changes are coming for domestic and international trade, and how you can prepare for the new rules.

The main points

• From 1 July 2030, e-invoicing will become mandatory for business invoices in the EU and the Netherlands.
• An e-invoice is not the same as a PDF invoice.
• E-invoices are processed automatically by software.
• Do you supply goods or services to the Rijksoverheid (central government)? You are already using e-invoices for transactions with them.
• Find out now what your accounting software can handle, so that you are prepared for the changes.

What is an e-invoice?

An e-invoice (e-factuur in Dutch) is an invoice in a standard digital format. Accounting and administrative systems are able to automatically exchange and process the invoice data. You usually create and send e-invoices via accounting or invoicing software. The invoice is sent directly from the sender’s system to the recipient’s. This means that nobody needs to enter the data manually.

An e-invoice contains the same details as a standard invoice. The difference is not in the content, but in the way the data is set out. An e-invoice uses a standardised format that software can process automatically. A PDF that you email as an attachment is not an e-invoice.

Difference between a PDF invoice and an e-invoice

A PDF invoice and an e-invoice often contain the same information. But they are not the same thing. A PDF is primarily intended for reading. Someone still needs to process, check, or amend the data manually. An e-invoice contains data that software can immediately recognise, exchange, and process.

What are the advantages of e-invoicing?

E-invoicing offers practical advantages for businesses:

• less manual data entry and a lower risk of errors
• faster processing of invoices
• less administrative work

What is Peppol?

Peppol is an international network that enables organisations to exchange electronic documents and invoices securely. The Dutch government already uses this network for e-invoicing. Within Europe, too, the network plays an important role in the continued roll-out of e-invoicing. Peppol sends invoices directly between accounting systems. As a business owner, you often hardly notice this, as your software supplier handles it in the background.

Why is e-invoicing becoming more important?

Public authorities and businesses want to use digital administrative processes to make them more efficient. The European Union is promoting e-invoicing to improve VAT controls and reduce VAT fraud. The new rules form part of the European programme VAT in the Digital Age (ViDA). The Netherlands has decided to introduce these rules not only for cross-border transactions, but also for transactions between businesses within the Netherlands.

When do you have to start e-invoicing?

E-invoicing is already mandatory for some businesses. Do you supply goods or services to the Dutch central government? The Rijksoverheid only accepts e-invoices. Other public authorities can also demand you send them e-invoices. 

From 1 July 2030, e-invoicing will be mandatory for cross-border deliveries between businesses in the EU. If your business trades with companies in other EU countries, you must use e-invoicing from then on to comply with the new European rules.

The government has decided to also make e-invoicing mandatory for transactions between businesses in the Netherlands (in Dutch). This will also come into effect on 1 July 2030, if the proposed bill is passed. A year later, from 1 July 2031, businesses will also have to start digitally reporting business transactions in the Netherlands to the Netherlands Tax Administration. Under current plans, business owners who make use of the small businesses scheme (KOR) will remain exempt from this requirement.

What do the new rules mean for your business?

The consequences vary from business to business. Do you supply goods or services to other businesses? If so, you will probably need to use e-invoicing.

You send paper invoices

In that case, you will probably need to digitise your invoicing process.

You send invoices as PDFs

A PDF is not an e-invoice. You will need to switch to a format that software can process automatically.

You already use accounting software

Check whether your accounting programme can send and receive e-invoices. Also check whether the software is connected to Peppol or will support it in future. Often, new software is not necessary.

You receive a lot of invoices

With e-invoicing, receiving and processing invoices becomes more automated. This saves time and makes your administration clearer.

Prepare for e-invoicing

You can start preparing for the new rules now:

• Check how you currently send and receive invoices.
• Check whether your accounting software can send and receive e-invoices.
• Ask your software supplier what options are available.
• Discuss the developments with your accountant or accountancy firm.
• Work towards a fully digital accounting system, step by step.