After some delays, the Peppol e-invoicing system is being put in place in Belgium for all transactions, including B2B, in January 2026. Let’s zoom on the Belgian e-invoicing regulations.

Overview

As of 2022, the Flemish government has reached their e-invoicing goals. This means that government entities are required to utilize e-invoicing under the European Directive 2014/55/EU. Since 2017, the Flemish government has required e-invoices from all of its suppliers.

On January 31, 2025, an agreement was reached on the formation of a new Belgian federal government. The coalition agreement includes significant tax policy changes aimed at promoting entrepreneurship and competitiveness. A key VAT measure in the agreement is the introduction of near real-time reporting, which is scheduled to begin in 2028. This initiative, designed to combat VAT fraud, will complement the mandatory e-invoicing requirement that will come into effect on January 1, 2026.

If you do not have the appropriate software yet, the Belgian tax authorities have shared a list of potential software solutions that can help you. There are various types of software available: software that can only send e-invoices, software that can send and receive e-invoices, and software that can also immediately process the e-invoices in your accounting system. List of compliant software applications is available on this website.

B2G E-Invoicing

Business-to-government e-invoicing is mandatory since March 1, 2024, except for contracts under the threshold of 3,000 euros (subject to exception). All public authorities must be able to receive e-invoices and select public authority suppliers are required to send their invoices in the specified electronic format (PEPPOL BIS).

End-to-End E-Procurement

Vlaanderen, the official gateway for the Flemish government, indicated that the Flemish government’s approach is a commitment to fully digital processing of public procurement and related processes: end-to-end e-procurement. Since 2015, the Flemish government has ruled that all businesses must be able to receive e-invoices.

The Introduction of B2B E-Invoicing in Belgium

Finance Minister Vincent Van Peteghem has reached an agreement in the Council of Ministers on the mandatory introduction of digital invoicing (e-invoicing) between businesses starting from January 1, 2026. While this requirement already applies to invoices provided to the government, Minister Van Peteghem ensures that as of January 1, 2026, structured electronic invoices will also become the standard for transactions between taxable companies.

In a word, Belgian VAT-registered businesses will be required to exchange structured e-invoices directly between their systems through a regulated standard. Belgium chose the European EN 16931 standard, as for B2G e-invoices, and relies on the Peppol network to achieve this transition.

To go further

In July 2024, the Belgian Federal Public Service Finance has published new guidelines for the transition to B2B e-invoicing. According to it, the obligation for structured electronic invoicing will almost always apply to transactions between two Belgian companies subject to VAT.

There is no obligation to send structured electronic invoices for:

• Bankrupt VAT taxpayers
• Companies only carrying out transactions exempted by Article 44 of the VAT Code
• VAT payers not established in Belgium without a permanent establishment
• Flat-rate VAT payers (Article 56 of the VAT Code, extinct by January 1, 2028 at the latest)

There is no obligation to be able to receive structured electronic invoices for:

• Companies carrying out only transactions exempted by Article 44 of the VAT Code
• There is no obligation to send or receive structured electronic invoices if the transaction is exempted by Article 44 of the VAT Code.

The government has opted to utilize the European PEPPOL network for this new development. When a company joins this network, it automatically connects with all other participants in this network. This network is already in use in many other EU member states.

Conclusion

2026 will be a year of e-invoicing implementation in Europe, Belgium is no exception, as we have to prepare for the next big step of 2030 with ViDA.

To make sure you remain compliant with all international regulations, you have to chose a provider that can support you across all countries. SPS Commerce offers comprehensive solutions to help you stay ahead of all regulatory changes. Contact us today to know more about our e-invoicing offerings.

Context

Like other European countries, one of the main reasons that e-invoicing has been established in Poland is to prevent tax fraud, although this is only the latest of several precautions the country has already taken. As of now, Poland has already implemented monthly VAT reporting, electronic financial analysis, and an online fiscal cash register system for monitoring transactions (in the retail sector). Now, with the introduction of electronic invoicing, Poland will be one step closer to eliminating VAT tax fraud.   

B2G E-Invoicing in Poland

B2G e-invoicing is already mandatory in Poland. All public authorities must be able to receive e-invoices via the country’s national e-invoicing platform, the PEF. The PEF is used for B2G e-invoicing between private companies and government entities in public procurement. Public authority suppliers are not required to submit their invoices electronically, but many suppliers opt to do this voluntarily by choosing a service provider that serves as a PEPPOL Access Point, such as SPS Commerce.

The PEF was first introduced in 2019 and since then, all sub-central Polish public entities are required to register on this platform in order to be able to recieve e-invoices. The PEF supports the sending and receiving of e-invoices, as well as other transactional documents in a standardized XML format. The platform consists of two PEPPOL Access Points implemented by service providers.

B2B E-Invoicing in Poland

In Poland, B2B e-invoicing transactions have been allowed but voluntary since the beginning of 2022 and will only become required as of July of 2024. The EU has granted Poland provisional permission to impose mandatory B2B e-invoicing from February to April 2026.

On August 7, 2023, the President of Poland signed the Act of June 16, 2023 amending the Polish VAT Act and several other acts. This law confirms the date previously announced by the Ministry of Finance for the introduction of the new e-invoicing format. The Polish Ministry of Finance has published on April 4th, 2024 a summary of the proposed legal options for the revised Polish e-invoicing mandate “KSeF”.

Currently, KSeF is a voluntary solution – you can choose whether to issue a structured invoice in KSeF or as before (on paper or electronically, e.g. in a PDF file). As of February 1st, 2026, the following applies:  

• • From February 1, 2026, e-invoicing will be mandatory for businesses with annual sales exceeding PLN 200M (approximately 46M EUR) 
  • From April 1, 2026, the requirement will extend to smaller businesses, mandating them to use the government run e-invoicing clearing system.  
  • Entities whose monthly revenue does not exceed PLN 10.000 will be allowed to switch to e-invoicing by December 31, 2026.  

The requirement to send and receive structured e-invoices will not apply to foreign entities in Poland, nor to entities that do not have a permanent establishment but rather are registered purely for VAT purposes in Poland. These taxpayers can continue to issue invoices based on the existing rules (either electronically or in paper form), and voluntary electronic invoicing via KSeF will remain possible for them.   

Standards and technical requirements 

Poland uses the standard format (EN 16931) and PEPPOL BIS Billing 3.0. Given that invoices are compliant with EN16931 and PEPPOL BIS Billing 3.0, all registered Polish public entities should be able to receive electronic invoices from other PEPPOL-connected entities.  

Taxpayers need an ERP system that combines their financial records with the KSeF portal through the PEPPOL-certified API to process and exchange e-invoices in Poland.  

Conclusion

Poland is moving towards full digitalization of invoicing. While participation in KSeF remains voluntary until early 2026, businesses should not delay preparation. The system will become mandatory in phases starting February 2026, with full coverage by April 2026.  

Companies operating in Poland should ensure their accounting systems, internal workflows, and compliance processes are ready to connect with KSeF ahead of time to avoid disruptions once the mandate takes effect.  

Understanding digitalization in supply chains 

Digitalization in supply chains goes beyond implementing flashy technologies; it’s about creating an ecosystem where information flows freely, and processes are optimized. At its core, digitalization is the transformation of supply chain operations by leveraging technology to integrate data, automate tasks, and enhance connectivity among stakeholders. 

Supply chain ecosystem often includes managing complex networks of suppliers, distributors, retailers, and customers. In this environment, digitalization provides the tools to streamline workflows, improve decision-making, and enhance customer satisfaction. 

Let’s break down the key pillars of digitalization in supply chains:

Data integration: The foundation of a supply chain

A supply chain is only as strong as the data that supports it. Data integration involves connecting disparate systems, platforms, and stakeholders to create a unified view of operations. With the right integration tools, supply chain managers can access real-time data on inventory levels, supplier performance, transportation schedles, and customer demand. 

Why it matters: 

• Improved Visibility: Integrated data provides end-to-end visibility, empowering managers to identify bottlenecks and inefficiencies quickly. 

• Enhanced Decision-Making: A centralized data system enables accurate forecasting and informed decisions based on real-time insights. 

• Collaboration: Integration bridges the gap between departments and partners, fostering better communication and coordination. 

Example in action: Imagine a retailer using integrated data systems to monitor supplier inventory levels and automatically adjust order quantities based on customer demand trends. This level of synchronization ensures that shelves are stocked without overloading warehouses.

 Reducing manual efforts with automation

Automation is one of the most tangible benefits of supply chain digitalization. Replacing repetitive manual tasks with automated workflows not only saves time but also minimizes errors and frees up human resources for strategic activities. 

Why it matters: 

• Efficiency gains: Automated processes streamline operations, from order processing to inventory management. 

• Cost savings: Reducing manual intervention lowers operational costs while increasing productivity. 

• Scalability: Automated systems can handle increased workloads without compromising accuracy or speed. 

Example in action: A distribution center equipped with automated pick-and-pack systems can process thousands of orders per day with minimal human intervention, ensuring faster delivery times and reduced labor costs.

Building a collaborative ecosystem with connectivity

Digitalization is fundamentally about connectivity—connecting systems, people, and processes to create a seamless supply chain network. Connectivity ensures that all stakeholders, from suppliers to customers, are on the same page, leading to improved collaboration and transparency. 

Why it matters: 

• Real-time updates: Connected systems provide instant updates on shipment status, inventory levels, and production schedules. 

• Customer satisfaction: Enhanced connectivity allows for faster response times and better communication with customers. 

• Resilience: Connected networks are better equipped to adapt to disruptions, ensuring continuity in the face of challenges. 

Example in action: A supply chain manager utilizing IoT-enabled tracking devices can monitor the exact location and condition of shipments in transit, making adjustments as needed to avoid delays or damage. 

 Why digitalization is crucial for supply chains 

In the rapidly evolving world of supply chain management, staying competitive requires more than adopting AI or robotics. Digitalization offers a holistic approach to transforming operations by focusing on the integration of data, automation of processes, and connectivity among stakeholders. It enables supply chains to: 

• Respond faster to market changes. 

• Reduce costs while maintaining high service levels. 

• Foster collaboration across the supply chain ecosystem. 

Taking action: How to begin digitalizing your supply chain 

1. Assess your current systems: Identify areas where data silos, manual processes, or connectivity gaps exist. 

1. Invest in scalable solutions: Choose technologies that grow with your business, such as cloud-based platforms and IoT devices. 

1. Train your team: Equip your workforce with the skills to leverage digital tools effectively. 

1. Collaborate with partners: Work with suppliers, distributors, and technology providers to create a unified digital ecosystem.
   

The future of digitalized supply chains

As supply chains become increasingly global and complex, digitalization will continue to play a pivotal role in shaping the industry’s future. Supply chain managers who embrace digitalization today will be better positioned to thrive in a world where agility, efficiency, and collaboration are key to success. 

Remember, digitalization isn’t just about adopting AI or robotics – it’s about creating smarter, more connected supply chains. By focusing on data integration, automation, and connectivity, supply chain managers can unlock the true potential of digitalization and drive their operations toward a more resilient and efficient future. 

SPS Commerce is dedicated to supporting businesses across industries and continents to thrive in increasingly competitive markets. We pride ourselves on powering the connections that move the world of commerce forward. As SPS Commerce expanded our reach to Europe, we gained a deeper understanding of the intricacies of the European market and are committed to helping businesses overcome challenges, adapt to change, and achieve lasting success, no matter what challenges the world throws at us. 

What sets SPS Commerce apart 

Earlier in 2025, SPS Commerce has been recognized as the #1 IT Infrastructure Software in G2’s 2025 Best Software Awards which was an inredible milestone for us. We consider our customers’ success to be our own and look forward to continuing to provide solutions that allow companies to focus on growing their businesses instead of managing their tools.

Simplicity is key. We pride ourselves on fast onboarding and accelerated speed-to-value for our customers. With intuitive platforms and expert guidance, businesses can integrate and start exchanging data seamlessly. No lengthy timelines – just efficient workflows designed to empower success from day one.  

Retail connections just a click away. Retail isn’t one-size-fits-all, and neither is SPS Commerce. Our onboarding process is laser-focused on retail-specific needs, ensuring alignment with your trading partners’ requirements. Whether you’re tackling complex compliance standards or navigating unique retailer expectations, we’ve got the tools and expertise to make it happen. 

Elevate compliance. While most providers only address regulatory requirements, SPS ensures both legal and business compliance, tailoring your data to meet the unique needs of each trading partner. This two-level compliance approach streamlines operations, strengthens relationships, and drives efficiency for our clients.

How SPS Commerce helps supply chains thrive 

Our values inspire continuous improvement every day. At the heart of everything we do are our customers. We’re driven by a passion to understand their needs, address their challenges, and deliver meaningful value to their businesses. As trusted advisors, we focus on forging lasting partnerships designed to empower our customers’ success and growth for the long term.

Your personal EDI-department 

In today’s dynamic market, expanding your business means managing an increasing number of sales channels, partners and customers. This often leads to a chaotic mix of emails, spreadsheets, portals and the complexities of EDI compliance. Stop managing everything by hand and let Fulfillment by SPS Commerce simplify your day-to-day operations for maximized growth. 

Transform your retail data into revenue growth 

When you sell everywhere, you need data that works as hard as you do. Analytics by SPS Commerce eliminates this frustration by unifying all your omnichannel metrics into one powerful platform. Get the clarity to optimize inventory, accurately forecast sales, and make data-driven decisions that fuel growth, all while overcoming the chaos of fragmented retail data.

A comprehensive e-invoicing solution

More countries are mandating B2B electronic invoicing. In Europe, e-invoicing compliance is becoming the new norm as the EU commission is working on the VAT in the Digital Age proposal. When it comes to e-invoicing at SPS Commerce, we’ve taken compliance to the next level. We not only ensure compliance with tax and legal requirements across the globe but also position you for success in meeting both your own and your trading partners’ commercial invoice needs. Compliance is multifaceted – and with E-invoicing by SPS Commerce we have the expertise to stand out in the e-invoicing industry. 

Let’s get to know each other? 

SPS Commerce is committed to helping businesses navigate complexity, adapt to change, and thrive in competitive markets. Our products are designed to address your unique challenges while delivering on our promise of seamless connections, compliance, and efficiency. 

Got interested? Explore SPS Commerce’s solutions and discover how we can help you achieve your business goals. 

With such multi-level digitisation, PDF invoices still remain popular. Entrepreneurs are so used to this that they are happy to look for ways to keep PDF invoices in use. At this moment, software service providers are stepping in to offer digital conversion from PDF to XRechnung. This approach allows companies to keep their internal organization and processes but is detrimental in the long run.

How reliable are the conversion tools?

When converting PDF invoices to XRechnung format, the reliability of the conversion tool is of the utmost importance. These tools are designed to extract data from a PDF file and reformat it into a structured electronic invoice that complies with German regulations. However, this process is not foolproof.

Errors can occur during the data extraction phase, resulting in inaccurate invoice details such as incorrect amounts, item descriptions or tax calculations. In addition, formatting errors can affect your XRechnung file and lead to problems with the recipient or regulatory authorities. This can cause delays in payment processing, strained relationships with business partners and even legal consequences.

Are you able to verify the accuracy of every converted invoice? If your organization does not have the resources to manually check each file, the risk of error remains high. This lack of reliability undermines the very purpose of e-invoicing, which is to comply with regulations and streamline processes.

Hidden costs of e-mail exchange

Sending electronic invoices by email is another common practice, but it comes with significant security risks. Email systems are vulnerable to cyberattacks, including hacking, phishing, and interception. If an invoice is compromised during transmission, sensitive financial information about your organisation and business partners can fall into the hands of malicious actors.

Such security breaches can have far-reaching consequences. For example, leaked invoice data can lead to fraud, identity theft, or unauthorised changes to payment data. The reputational damage caused by such incidents can undermine trust between your organisation and business partners, ultimately impacting on your bottom line.

Aside from security, invoicing by email is inefficient and time-consuming. Each invoice requires manual intervention, from attaching the file to composing the email and ensuring it reaches the right recipient. This process is prone to human error and delays, especially when it comes to large volumes of invoices.

Solution to these challenges? Automated e-invoicing platforms resolve these challenges by using Peppol as a secure and standardized communication method. By adhering to strict compliance standards and using encryption protocols, Peppol protects sensitive data and prevents unauthorized access during invoice exchange.

The choice between temporary solutions and long-term strategy

The e-invoicing landscape in Germany is evolving rapidly and companies need to adapt to stay ahead. The XRechnung format, which was originally introduced for transactions in the public sector, is gradually becoming the standard in various industries. As electronic invoicing continues to gain traction, relying on manual conversion tools is no longer a sustainable option.

What PDF to XRechnung conversion tools lack is scalability, so they are not suitable for organisations that process large volumes of invoices. Furthermore, such tools do not integrate seamlessly with enterprise resource planning (ERP) systems, leading to inefficiencies and bottlenecks in the invoicing workflow.

By investing in a robust e-invoicing platform, you can future-proof your business. These platforms offer scalability, automation and compliance, ensuring your invoicing processes can keep pace with regulatory changes and business growth. They also offer real-time tracking and reporting capabilities that provide greater visibility and control over invoice management. This way, your company can move away from reactive compliance measures and adopt a proactive strategy that increases efficiency, security and reliability. The question is no longer whether you can achieve compliance through a manual transition, but whether your organization can thrive in the age of e-invoicing with the right tools and strategy.

A Landmark Achievement
Being featured in these prestigious reports underscores our commitment to leading the e-invoicing revolution. The Billentis reports are renowned for their comprehensive market analysis and insights into the future of electronic invoicing and tax compliance. This inclusion is a testament to our innovative solutions and our dedication to transforming traditional supply chain and invoicing processes.

The E-Invoicing Journey in France
The French report of the Billentis report, published in collaboration with the “Forum National de la Facture Électronique et des Marchés Publics Électroniques (FNFE-MPE)”  details the country’s advancements towards mandatory e-invoicing. France has been a pioneer in adopting digital invoicing solutions, and the report highlights the critical milestones and regulatory frameworks that are shaping the market. Our solutions have been instrumental in helping businesses in France comply with these new requirements, ensuring seamless and efficient invoicing processes.

Germany’s E-Invoicing Evolution
In Germany, the journey towards e-invoicing is equally transformative. The report, published in collaboration with the “Verband elektronische Rechnung (VeR),” outlines the country’s regulatory landscape and the technological innovations driving the market. Our cutting-edge solutions have positioned us as a key player in Germany’s e-invoicing ecosystem, enabling businesses to navigate the complexities of tax compliance and digital transformation.

Key Insights from the Reports
• Market Growth: The reports project significant growth in the e-invoicing market, with increased adoption rates driven by regulatory mandates and the need for efficient, paperless processes.
• Technological Innovations: Emerging technologies such as blockchain, AI, and machine learning are set to revolutionize e-invoicing, offering enhanced security, automation, and data analytics capabilities.
• Regulatory Compliance: Understanding and complying with country-specific regulations is crucial. The reports provide detailed timelines and guidelines for businesses to stay ahead of compliance requirements.

Our Role in the E-Invoicing Revolution
Our continued inclusion in the Billentis reports is a moment or recognition for us. It reflects our unwavering commitment to innovation, quality, and customer success. We continue to invest in developing robust solutions that not only meet regulatory standards but also drive business efficiency and growth.

Looking Ahead
As we move forward, we remain dedicated to pushing the boundaries of what is possible in the e-invoicing space. We are excited about the future and the opportunities it holds for us and our clients. Together, we will continue to lead the charge towards a fully digital, compliant, and efficient invoicing ecosystem.

To access the full studies, please visit the following links:
• Billentis report France 2025 (in French)
• Billentis report German 2025 (in German)

Thank you for being part of this incredible journey with us. Together, we are shaping the future of e-invoicing.

Which European countries will mandate e-invoicing for B2B transactions in 2025 and 2026?

E-invoicing regulations are rapidly evolving across Europe, with several countries introducing mandatory electronic invoicing for B2B transactions in the upcoming years. In 2025, countries such as Germany, Latvia, and Greece are set to mandate e-invoicing for B2B transactions. In 2026, other European nations are expected to follow suit, including France, Poland, Croatia and Belgium. Staying updated on these regulations is crucial for businesses operating within these regions to ensure compliance and avoid potential penalties.

Compliance for organizations in both in-land and cross-border business transactions

Global supply chain has a lot of regulatory complexities. Different countries have varying regulations and standards that businesses must comply with, including trade laws, tariffs, and import/export restrictions. Navigating these regulations requires a deep understanding of each jurisdiction’s legal requirements. While e-invoicing systems cannot resolve every challenge, it can be programmed to ensure that invoices meet the specific regulatory requirements of different countries, including tax laws and invoicing standards.

There are three main components of e-invoicing that governments regulate: the creation of a compliant e-invoice, the exchange of e-invoices through compliant channels, and the compliant archiving of e-invoices. Each country has its own specifications and rules, which sometimes (but not always) overlap. Which e-invoice format is right for you when exchanging invoices with your foreign business partners? How do you organize the exchange of e-invoices between offices of the same company that are located in different countries? Keep in mind that this is a very dynamic industry and regulations are changing rapidly around the world. Do you have trusted resources to keep up with the latest changes? And perhaps one of the most important questions – how can you adapt your processes to e-invoicing with maximum regulatory coverage at optimal cost?

E-invoicing significantly simplifies compliance with both in-land and cross-border transactions. By automating the invoicing process, companies can ensure that their invoices are accurate and adhere to the regulatory requirements of each jurisdiction they operate in. This not only reduces the risk of errors but also ensures that businesses remain compliant with the varying tax laws and invoicing regulations across different countries. E-invoicing facilitates seamless and transparent transactions, which are essential for maintaining good business relationships and avoiding legal complications.

Enhance Even the Most Complex Supply Chain

It is important to remember that e-invoicing is not a legal or accounting domain, but a holistic, streamlined process that helps address issues such as logistical challenges, lack of supply chain visibility, and inefficient cost management. Many supply chain teams are looking to improve the efficiency of the entire chain, and e-invoicing can be the key technology to address a number of business objectives. It plays a critical role in improving the efficiency of these supply chains. By digitizing the invoicing process, companies can achieve faster processing times, reduce manual errors and improve cash flow management. In addition, e-invoicing provides real-time visibility into the status of transactions, enabling companies to manage their supply chains more effectively and respond quickly to disruptions. This digital transformation ensures that supply chains are more resilient, agile, and able to meet the demands of modern commerce.

SPS Commerce as your e-invoicing provider, all around the globe

When it comes to e-invoicing, having a reliable and experienced provider is crucial for ensuring compliance and operational efficiency. SPS Commerce offers comprehensive e-invoicing solutions that cater to businesses of all sizes and industries. With a global presence and expertise in navigating complex regulatory environments, SPS Commerce ensures that your invoicing processes are streamlined and compliant with local and international regulations. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 45,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics have chosen SPS as their retail network.

The European Commission is determined to fight tax fraud and unify the tax reporting process across European countries, so it has come up with the ViDA (VAT in the Digital Age) proposal to support this will. This blog article is here to keep you updated on the latest developments and votes and is going to be updated on a regular basis.

ECOFIN

It is useful to know that discussions around ViDA occurs during the ECOFIN Council, usually once a month, the latest has been held on January 21^st 2025, now under the Polish Presidency.

The main objective will be to “meet the challenge of the EU’s declining competitiveness”. The Polish Presidency wants to achieve a stronger economy by streamlining the single market.

As far as our ViDA subject is concerned, ECOFIN validated the three pillars of the proposal on November 5, 2024, under the Hungarian presidency. A compromise satisfactory to all 27 member states was reached after months of negotiation.

On March 12, 2025, The European Commission has approved new measures to modernise the EU’s VAT system.This means that EU member states can introduce mandatory e-invoicing under certain conditions.

On February 12, 2025, the European Parliament approved the draft Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age. The draft requires final political approval from Council of the European Union. The report on the draft Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age ia availble here.

The 3 Pillars of ViDA

As we’ve developed an article on the most common questions about ViDA, this section is going to focus on a more technical point of view with the specific rules that are discussed during the council.

To summarize, ViDA is developed around 3 main pillars:

Electronic Invoicing and Reporting (DRR)
As ViDA aims to fight tax fraud and reduce the VAT Gap, the proposal implements the so-called DRR – Digital Reporting Requirements – to get a real-time view on invoices that are exchanged cross-border in the EU.This first pillar implies a common standard (EN16931) for the e-invoices that are going to be issued, with specific information that should appear within the invoice.

Online Platforms
This part is targeting short-term accommodation rental and passenger transport through platforms (e.g. Uber or AirBnB).With the new rules, “Member States should put at the disposal of the taxable persons the necessary means for such transmission”. It will simplify the process for SMEs and individual service providers. Finally, it is promoted as “fairer” in regard to small companies that may have a heavy administrative burden related to their tax collection.

Single VAT Registration
The One Stop Shop (OSS) will represent the decentralized model that is considered for ViDA. It will allow a Single VAT Registration number, simplifying administrative work for companies who will register only once to fulfill their VAT obligations all over Europe.

What is changing

• E-invoicing is becoming the default system
  • But States can have other invoicing means for domestic transactions
• Standard EN16931 is mandatory to issue e-invoices
  • Hybrid formats should be accepted as well
• E-invoices must be issued 10 days max after the sale

• VAT reporting will occur through the DRR for cross-border supplies of goods and services
  • It needs to happen in real time
• Domestic transactions are not (yet) ruled by the EU VAT Directive

What are the deadlines

The European Commission has approved new measures to modernize the EU’s VAT system. This means that EU member states can introduce mandatory e-invoicing under certain conditions.

From January 1, 2027, there are expected small clarifications impacting those using the One-Stop-Shop schemes (OSS and IOSS).

From July 1, 2028, the Single VAT Registration elements come into effect:

• Extension of the OSS schemes
• Mandatory reverse charge for non-identified suppliers

From July 1, 2030, the Digital Reporting Requirements measures coming into effect – main impact on businesses making cross-border B2B supplies.

By July 1, 2035, the deadline for aligning domestic digital real-time transaction-based reporting obligations with the EU-system.

Why is it so important

As we developed the topic on previous blogs, we are putting forward the main goals communicated by the EU:

• Harmonize the EU’s VAT rules
• Reduce administrative work for companies
• Reduce the VAT Gap
• Increase the VAT accuracy

SPS Commerce, as an international service provider, can only encourage you to switch to e-invoicing now. Trusting one of the leaders on the market will help you be compliant with all VAT regulations, may they be local, international or in construction such as the ViDA proposal.

Why Romania Decided to Implement B2B eInvoicing

Romania decided to implement eInvoicing to reduce tax evasion and close the VAT gap, which was the largest in the EU in 2019. The digitization of invoices is in line with the EU eInvoicing Directive 55/2014/EU and the VAT in the Digital Age (ViDA) proposal. The introduction of eInvoicing is also part of Romania’s broader strategy to embrace the digital age.

Romanian e-Factura has important advantages for both the public administration and the private sector:

• It provides a real-time overview of budget execution and, in the next step, of business-to-business (B2B) transactions;
• It contributes significantly to the reduction of VAT fraud at national level and within the European Union. It’s also going to reduce losses related to tax evasion;
• Its system is going to be interconnected with the other systems of the EU Member States;
• It ensures the possibility for any entity from any Member State of the European Union to participate in the public procurement process;
• The system will provide real-time data, which will lead to the efficiency of the collection process and, implicitly, to ensure the investment needs of the Romanian State;
• Efficiency, predictability and transparency in the expenditure of funds by public institutions;
• Will contribute to the development of the documentary verification mechanism (desk – audit – ANAF control – remote antifraud) for compliance and prevention actions;
• The data collected through this system will support more detailed predictive analyses of economic evolution, identifying asymmetries in the economy and implementing relevant fiscal policies that ensure a natural framework for the development of the business environment;
• Eliminate the weaknesses of the old paper accounting system.

The implementation of the pre-filled RO e-VAT declaration was approved in August 2024 for taxable persons registered for VAT purposes in Romania. The pre-filled RO e-VAT declaration must be sent to taxpayers, for each reporting period, electronically, by the 5th of the month following the legal deadline for submitting the VAT return (D300).

The legal provisions regarding the pre-filled RO e-VAT return come into force on January 1, 2025, and for taxable persons applying the VAT on collection system, the provisions will apply from August 1, 2025 (Source PwC Romania).

Important Aspects of eInvoicing in Romania

The e-Facture implementation process will be carried out in two phases, as follows:

In the first stage, between January 1, 2024 and June 30, 2024, economic operators – taxable persons established in Romania, whether or not they are registered for VAT purposes, have the obligation to report in the national electronic invoicing system RO e-Factura all invoices issued in the B2B relationship and in the relationship with public institutions, with the exception of those issued in the B2G relationship, for which there is an obligation to use RO e-Factura from July 1, 2022.

The Ministry of Finance has issued an Emergency Ordinance extending the soft landing period for electronic reporting until May 31, 2024. As of July 1, the mandate evolves into a full B2B e-invoicing exchange mandate (a centralized clearing and exchange model). The period of no sanctions/penalties is now extended to support companies in “…further adapting their procedures/systems for the transmission of invoices in the national electronic invoicing system RO e-Factura”.

In the second stage, starting from July 1, 2024, the issuers of electronic invoices have the obligation to transmit them to the recipients, using the national electronic invoice system RO e-Factura.

Also, as of January 1, 2024, the non-established taxable persons registered for VAT purposes in Romania will be obliged to register in the national electronic invoicing system RO e-Factura all the invoices issued in the B2B relationship for the supply of goods and services with the place of delivery or supply in Romania.

The following transactions are exempted from the obligation to use the national electronic invoicing system RO e-Factura:

• Supplies of goods dispatched or transported outside the European Union by the supplier or another person on his behalf;
• supplies of goods dispatched or transported outside the European Union by the purchaser who is not established in Romania, or by another person on his behalf, with the exception of goods carried by the purchaser himself and used to equip or supply boats and recreational craft or other means of transport for private use;
• intra-Community supplies of goods.

Archiving Period: Electronic invoices and messages communicated between the issuer and the recipient will remain available in the RO e-Factura system for 60 days and will then subsequently be archived electronically and obtained only on request. Senders and receivers must keep all invoices (issued and received) for at least 10 years.

Electronic Signatures: Romania already has existing rules in place around digital signatures. No electronic signature is required for eInvoices.

Romanian National eInvoicing Platform: The RO eInvoicing platform has been available since November 2021 for both the exchange of invoices with public administrations (B2G) and between private companies (B2B).

Digital reporting requirement: From 2022, all Romanian companies and all foreign companies registered in Romania for VAT purposes have to report their tax and accounting information in SAF-T format. More about SAF-T we explained in our previous blog post.

Relevant Romanian Governmental Websites:

• Ministry of Public Finance
• National Agency of Fiscal Administration (ANAF)
• RO e-Invoicing platform

B2G e-invoicing in Romania

As of July 1, 2022, eInvoicing became mandatory for Business-to-Government (B2G) transactions according to Law 139/20224. All transactions with Romanian public bodies must issue electronic invoices through the national invoicing system RO e-Factura.

Looking Ahead

The eInvoicing landscape in Romania is evolving rapidly. By staying informed about regulations and exploring available solutions, businesses can prepare for the transition and reap the benefits of electronic invoicing.

eInvoicing is becoming increasingly important in both B2B and B2G transactions across Europe. A few years ago, it was mostly voluntary and only those who were aware of the security, convenience and data automation benefits of eInvoicing took advantage of it. Today, if you are a company registered in Romania or have Romanian business partners, you need to comply with B2B e-invoicing regulations both in Romania and in your country of registration.

If you need to comply with eInvoicing requirements not only in Romania, but also in other countries, you need to choose an international eInvoicing provider. At SPS Commerce, we elevate more than 50,000 subscribing customers around the globe with secure and compliant solutions.

Manual processes have long been a staple in supply chain management. However, they come with inherent challenges that limit efficiency and hinder growth. Manual data entry is time-consuming and error-prone, leading to delays, inaccuracies, and communication breakdowns. In a world where speed and accuracy are paramount, such inefficiencies can result in missed opportunities and strained business relationships.

Another problem with manual data processing is the lack of visibility it causes. It’s critical to keep supplier data up-to-date across supply chain management software, enterprise resource planning (ERP), financial, or accounts payable systems.

However, all the valuable data is often hidden in spreadsheets, databases, and remote file repositories. This critical information is siloed in each business unit, procurement team, and regional office. As a result, it is often impossible to access and act on a consolidated, complete, and trusted view of all your suppliers and subcontractors.

• 77% of global supply chain leaders were planning to implement digital technologies in supply chain visibility (McKinsey)
• Only 6% of businesses claim to have complete supply chain visibility. (g2.com)

Automated data quality processes are the ace up supply chain’s sleeve. If embedded effectively, they improve the quality of supplier data while reducing manual effort and costs.

Embracing the Power of EDI

Electronic Data Interchange (EDI) is a technology that enables businesses to exchange data in a standardized electronic format. Instead of relying on paper-based documents, fax, or email, EDI automates the exchange of critical business documents such as purchase orders, invoices, and shipping notices. This automation eliminates the need for manual data entry, significantly reducing errors and processing times.

EDI eliminates paper and enables automated data exchange between trading partners. EDI documents contain the same information as their paper counterparts-for example, an electronic invoice would have all the same elements (date, line item, item number, cost, etc.) as a paper invoice. However, there’s no need for anyone to spend time sifting through dozens of invoices a day to find what they need-EDI documents automate that process for you by creating standardized electronic messages (business documents) between trading partners and making those documents available in a single location, most likely an ERP system.

The Benefits of EDI Solutions

1. Enhanced Accuracy: With manual data entry removed from the equation, the risk of human error is drastically reduced. This leads to accurate and reliable data exchange, ensuring that the right products are delivered to the right place at the right time.

2. Faster Processing: Manual processes can be time-consuming, especially when dealing with large volumes of documents. EDI accelerates document exchange, allowing for real-time communication between trading partners and expediting overall supply chain operations.

3. Cost Savings: By reducing manual intervention, organizations save on labor costs associated with data entry and document processing. Additionally, fewer errors mean fewer resources spent on rectifying mistakes.

4. Improved Visibility: EDI provides a transparent view of the supply chain by offering real-time tracking and status updates. This visibility enhances collaboration, enabling informed decision-making across departments.

5. Enhanced Partner Relationships: EDI fosters better communication between trading partners. The seamless exchange of documents strengthens relationships, leading to improved collaboration and customer satisfaction.

SPS Commerce: More than just EDI

As the only full-service provider, SPS Commerce is at the forefront of supply chain digitalization. Our expertise lies in enabling businesses to seamlessly transition from manual processes to automated EDI solutions. With ISO 27001, 27017, 27018, SOC2, and SOC3 certifications, we provide a secure and reliable platform for your EDI needs.

Making the Transition

Choosing the right EDI provider is easier said than done. There’s a lot to consider in terms of your company’s current situation—technical infrastructure, in-house expertise, and so on. In one of our previous blog articles we created a list of all the things you should consider when attempting to make a decision, regardless of if you’re a first-timer or a seasoned veteran.

Transitioning to EDI may seem daunting, but SPS Commerce simplifies the process. Our solution is designed to integrate seamlessly with your existing ERP and accounting software, ensuring a smooth and efficient migration. We understand the importance of maintaining business continuity while embracing new technology, and our team is dedicated to supporting you every step of the way.

The Future of Supply Chains

The future of supply chain management is digital, and EDI solutions are the driving force behind this transformation. By automating document exchange, eliminating errors, and enhancing communication, businesses can achieve unprecedented levels of efficiency and competitiveness. As an industry leader, SPS Commerce is committed to empowering organizations to take this crucial step toward a more streamlined and resilient supply chain.

In conclusion, the shift from manual processes to EDI solutions represents a monumental leap forward in supply chain management. With the expertise and innovative technology of SPS Commerce, businesses can unlock a new era of efficiency, accuracy, and collaboration. Embrace the future of supply chains – embrace the power of EDI.