What is an electronic invoice? E-invoice explained simply

The digitisation of invoicing is no longer optional in many parts of the world. Whether due to tax regulations or efficiency goals, more and more companies are adopting structured electronic invoicing systems to improve operations and ensure compliance.

But what is an electronic invoice exactly? What is the use of an e-invoice, and how does it work?

In this article, we explain everything in a simple and practical way — from formats and legal requirements to how you can start using e-invoicing in your business today.

Table of contents

What is an electronic invoice?

An electronic invoice (or e-invoice) is an invoice that is created, sent, received, and processed entirely in digital format. Unlike a scanned paper invoice or a PDF sent by email, a true e-invoice must contain structured data that allows it to be read automatically by computer systems. In many countries its use is mandatory for suppliers to the public administration, and it is increasingly being implemented for all transactions, among all companies.

In short:
✅ Nowadays, a PDF is not considered an electronic invoice under most modern regulations.
✅ An e-invoice must follow technical standards defined by governments or international bodies (like the EU or the UN).

🧠 E invoice meaning: A structured invoice file (usually in XML format) that is machine-readable, secure, and compliant with local regulations.

How does electronic invoicing work?

The process typically includes:

Creating the e-invoice in the appropriate structured format (e.g. XML, UBL, Facturae).
Transmitting it through a regulated channel (email, platform, or network like Peppol).
Receiving and validating it in the accounting or ERP system.
Optionally, reporting the invoice to the tax authority (depending on the country).

🧩 In some countries, invoices must first be approved by the tax office (clearance model). In others, companies are required to report them shortly after issuance (reporting model).

Structured vs unstructured e-invoices

In view of the above, there are generally two types of electronic invoices:

Type	Description	Examples
Structured	Files that follow a strict technical format (machine-readable).	XML, UBL, Facturae, XRechnung
Unstructured	Visual files that require manual handling. It’s not longer considered an e-invoice.	PDF, Word, scanned image

Structured electronic invoices format

These are invoices created in computer language. They are easily understood by computer systems, i.e. they are encoded to automate the management of information by the computer. For this reason, they are typically created in XML. There are many examples worldwide such as UBL (international), Facture-X (France), XRechnung (Germany), Facturae (Spain), among many others.

Unstructured electronic invoices format

These are invoices that must be processed manually by the receiver (for example, a PDF document).

Although we are talking about PDF as an electronic invoice, it is a format that is not considered as an electronic invoice due to the new regulations that are appearing globally.

Popular e-invoice formats

There are different structured formats depending on the country or industry. Some of the most widely used e-invoice formats include:

UBL: Internationally accepted and used across the EU, including in Peppol.
Facturae: Used in Spain, especially for public administration.
FatturaPA: The mandatory format in Italy.
XRechnung: Required in Germany for B2G invoicing.
ZUGFeRD / Factur-X: Hybrid formats used in Germany and France.
CII: United Nations standard, used in certain EU projects.
UBL Belgium: Also used in Belgium, where e-invoicing is mandatory for B2G and will soon extend to B2B.

🧠 If you’re unsure which format to use, a good e-invoicing solution like B2Brouter will automatically select and generate the right one for each recipient or country.

What information must an e-invoice include?

Like any paper invoice, the electronic invoice must necessarily include a series of data. For example:

It must be numbered. It must contain the date of issuance.
It must contain the fiscal data of the person issuing and receiving the invoice.
The type of operations that are being invoiced and their date.
Tax information (VAT, IRPF, etc.)
The amount to be paid.
Payment terms

💡In many cases, e-invoices in structured format must contain other specific data such as routing codes (e.g. Peppol Id, etc.). This varies depending on the receiver or the network through which the e-invoice is processed.

Can I turn my paper invoices into electronic format?

In theory, yes — but it’s not the most efficient or secure method.

There are OCR (Optical Character Recognition) tools that can extract data from scanned PDFs or photos of invoices. However, these systems are not 100% reliable, especially when invoices vary in layout, structure or quality. The risk of errors is high, and manual review is often required.

If your goal is to automate and streamline your invoicing process, this is not the ideal solution.

💡 The best approach is to use a specialized e-invoicing system that allows you to generate and send invoices directly in the correct electronic format (like UBL, Facturae or Peppol).

If you manage a high volume of invoices, consider integrating the tool with your ERP to fully automate the process and eliminate manual tasks.

How to create an electronic invoice

1. Using a free government tool (if available)

Some tax authorities provide online forms for creating e-invoices — if available in your country. These tools are usually:

Free
Very basic
Not integrated with your ERP or accounting software
Impractical for frequent use

Most of the time, governments only offer a delivery platform for their suppliers. However, e-invoices must be created elsewhere and then uploaded manually to these portals.

2. Using e-invoicing software (recommended)

A professional e-invoicing tool like B2Brouter allows you to:

Create e-invoices in multiple formats
Automate delivery and tracking
Stay compliant with international regulations
Integrate with your ERP or accounting software
Generate formats like UBL, Facturae, FatturaPA, etc.
Send invoices through Peppol or public portals
Archive documents, check statuses and avoid errors

💡 Let us handle the technical requirements – so you can focus on growing your business. Sign up for free and start invoicing!

What is Peppol and how does it relate to e-invoices?

Peppol (Pan-European Public Procurement Online) is an international network that allows companies and public entities to exchange e-invoices and other electronic documents using common standards and identifiers.

It is widely used in Europe and beyond. In countries like Belgium, Sweden, Norway, and soon France, Peppol is a required or preferred channel for sending and receiving e-invoices.

The default format used in Peppol is UBL. Therefore, if you’re working internationally or with public administrations, having an e-invoicing solution connected to Peppol is crucial. B2Brouter, for example, is an official Peppol Access Point, which means we can connect you directly to the Peppol network — without intermediaries — and handle the technical requirements for you.

👉 You can learn more about how Peppol works in this article.

What is the use of an e-invoice? Key benefits

Electronic invoicing goes far beyond replacing paper or PDF invoices. It’s a strategic tool that brings efficiency, transparency and compliance to your billing processes — both locally and internationally. These are the main advantages:

✅ Cost savings
E-invoicing reduces expenses on printing, postage, paper storage, and manual processing. Automated systems cut operational costs by up to 60–80% and minimize the risk of human error.

✅ Faster payments
Digital invoices are delivered instantly. Many companies see payments arrive earlier on average.

✅ Legal compliance
E-invoicing ensures your documents meet national and international tax regulations, helping you avoid fines and stay aligned with evolving legislation.

✅ Higher accuracy and fewer errors
Structured formats like UBL or Facturae eliminate the need for manual data entry, reducing mistakes and speeding up processing.

✅ Secure and reliable data exchange
Encrypted transmission, digital signatures and controlled access make e-invoicing the safest way to send and receive financial documents.

✅ Easier international invoicing
A good solution lets you send invoices in the right format, through the right channel (like Peppol), for each country or customer — without technical hassle.

✅ Supports sustainability goals
Going paperless helps reduce CO2 emissions and aligns your business with ESG initiatives and eco-conscious stakeholders.

✅ Remote work–ready
Cloud-based systems make it easy to issue and receive invoices from anywhere — no need for printers, scanners or mailrooms.

✅ Real-time tracking and visibility
If you use a complete invoicing platform, as B2Brouter, you will be able to know the status of every invoice at any time. Track deliveries, rejections, and approvals with full traceability — directly from your invoicing software or ERP.

✅ Seamless ERP and platform integration
Modern e-invoicing solutions connect with your accounting or ERP systems, eliminating duplicate work and enabling end-to-end automation.

Beyond efficiency, e-invoicing strengthens relationships with your customers, suppliers and authorities — through fast, transparent and standardized data exchange.

When is e-invoicing mandatory?

E-invoicing regulations vary significantly from country to country. In many cases, the obligation differs depending on whether the invoice is issued to another business (B2B) or to the public administration (B2G).

Here’s an overview of some key markets as of September 2025:

Country	B2G (Government)	B2B (Business)
🇮🇹 Italy	✅ Mandatory	✅ Mandatory
🇫🇷 France	✅ Mandatory	⚠️ Mandatory from 2026
🇪🇸 Spain	✅ Mandatory	⚠️ Mandatory from January 2026
🇩🇪 Germany	✅ Mandatory (XRechnung)	⚠️ Mandatory from 2025–2026
🇧🇪 Belgium	✅ Mandatory (Peppol)	⚠️ Mandatory from January 2026
🇸🇦 Saudi Arabia	✅ Mandatory (Phase 2)	✅ Mandatory (Phase 2)
🇲🇾 Malaysia	✅ Mandatory for public sector	⚠️ Gradual implementation

Many countries are transitioning toward real-time reporting and structured formats like XML or UBL, replacing traditional PDFs. You can see more details about each country’s regulations in our “Electronic Invoicing by countries” section.

🧠 If you work internationally, it’s key to use an e-invoicing solution that automatically adapts to each country’s format and channel requirements — like B2Brouter.

As you’ve seen, e-invoicing is not just a trend — it’s becoming a global standard. Understanding how it works — and how it varies by country — is essential for businesses of all sizes. From reducing costs and improving accuracy to ensuring tax compliance and streamlining operations, electronic invoicing is more than a legal requirement: it’s a smart way to future-proof your business.

Start e-invoincing the smartest way!

💡 With B2Brouter, you can simplify the transition with a reliable, all-in-one platform that helps you send, receive and manage e-invoices in any format, anywhere in the world — always compliant, always up to date.

Try it for free and start today!

📝 This article was originally published in 2024 and updated in September 2025 to reflect the latest global e-invoicing developments.