FAQ - Electronic invoicing

The purpose of e-invoicing is to make invoicing faster, more accurate, more transparent, and easier to control. For businesses, it reduces manual handling and helps improve invoice processing. For tax authorities, it provides better visibility into transaction data and supports VAT compliance. For trading partners, it creates a more reliable way to exchange invoice information. 

E-invoicing has many benefits, including less manual work, lower risk of errors, faster invoice approval, more payment visibility, and support for compliance with country-specific mandates. For international companies, e-invoicing simplifies the management of different customer, supplier, and regulatory requirements across markets.  

Electronic reporting, or e-reporting, is the digital submission of transaction, tax, or payment data to a tax authority. It works hand-in-hand with e-invoicing, but it serves a different purpose: e-invoicing manages the exchange of invoice data between trading partners, while e-reporting focuses on sending required fiscal data to the relevant authorities.

You can learn more about e-reporting in this guide

ViDA stands for VAT in the Digital Age. It is the European Union’s VAT modernization package, adopted on March 11, 2025, and being introduced in phases through January 2035. One of its major changes is the move toward digital reporting requirements for international B2B transactions, based on structured e-invoicing. In practice, ViDA is helping set the direction to a more standardized, digital VAT compliance across the European Union (EU). 

The 4-corner model is the framework used for exchanging e-invoices through service providers. The four corners represent: 

Each party connects through its provider, which helps route the invoice securely and in the correct format. E-invoice exchange via Peppol is a well-known example of a 4-corner model. 

The 5-corner model adds a new participant to the 4-corner model, usually a tax authority or government-controlled platform. This model allows invoice or reporting data to be shared with the authority as part of the transaction flow. It is becoming more relevant as governments combine e-invoicing with near-real-time reporting. Below is the example of the 5-corner model for e-invoicing in France. 

Yes, in many countries e-invoicing is becoming mandatory. Requirements vary by jurisdiction: some countries require structured e-invoices through Peppol or another approved network, while others use clearance platforms, national formats, or e-reporting obligations. The direction is clear: businesses should expect more digital, structured, and regulated invoice exchange over time.

Deadlines vary by country, transaction type, company size, and local rules. For country-specific details and upcoming deadlines, use this interactive map. At EU level, ViDA introduces digital reporting requirements for international B2B transactions from July 1, 2030, with further alignment expected by January 1, 2035. 

Your company may need to change how invoices are created, validated, sent, received, archived, and reported. Finance, tax, IT, procurement, and customer service teams may all be affected because e-invoicing often touches ERP data, supplier onboarding, customer billing flows, VAT reporting, and exception management. The impact will be bigger if you operate in several countries or trade with customers and suppliers subject to different mandates. 

You can work with a provider that understands both the technical integration and the changing compliance landscape. Descartes supports e-invoicing and e-reporting projects with connectivity, Peppol access, format handling, ERP integration, and multi-country compliance support.