Definition
E-invoicing is the exchange of invoices in a structured electronic format that the recipient's system can process automatically, as opposed to a PDF or paper invoice that must be read and keyed in. Many governments now mandate e-invoicing for business-to-government or business-to-business transactions using standards such as Peppol or national formats.
Also called: Electronic invoicing, Digital invoicing
E-invoicing in practice
For most small businesses, sending a PDF by email is still the norm and is legally valid. E-invoicing mandates are expanding, particularly in the EU, Latin America, and parts of Asia, so check requirements in the countries where your clients are based.
Frequently Asked Questions
Is a PDF invoice an e-invoice?
Not in the strict sense. A PDF is a digital image of an invoice. A true e-invoice is structured data, such as XML, that accounting systems can import without manual entry.