As early as 2025, new e-invoicing regulations are coming into force, which will change the way companies across the European Union issue and receive invoices. This is a step forward in automating and streamlining accounting processes, which requires businesses to adapt to the new requirements. What changes await us and what should you do to prepare? You can find out all about it in this article.
What are e-invoices under the new regulations?
Many entrepreneurs currently use PDF invoices and believe they are already using e-invoices. Starting in 2025, however, the definition of an e-invoice will be significantly expanded. According to the new regulations, an e-invoice is a document:
- Electronic, enabling automatic data processing.
- Complies with EN 1631, which specifies a document structure that makes it easy to read by accounting systems.
In practice, this means the need to use formats such as XML or a combination of PDF and XML, which enable automatic processing of data rather than just reading it.
Why are changes being made?
The changes are part of a European Union initiative aimed at:
- Improved VAT reporting – better tax control and greater financial transparency.
- Automation of accounting processes – simplifying activities related to issuing, receiving and processing invoices.
The new solutions are expected to bring companies greater efficiency and reduce errors resulting from manual document processing.
Who is affected by the new regulations?
The new obligation applies primarily to B2B (business-to-business) transactions. However, there are some exceptions:
- Transactions with individual customers (B2C) – here you can still use traditional invoice formats.
- Invoices for small amounts (up to EUR 250).
- Travel tickets.
Timetable for implementation of new regulations
The process of implementing the new regulations will take place in stages to allow companies to adapt to the changes:
- 2025-2026 – transition period: companies can still use traditional PDF or paper invoices.
- January 1, 2027 – mandatory e-invoicing for companies with a turnover of more than EUR 800,000.
- January 1, 2028 – all companies will have to use the new format.
What do you need to do to prepare?
1. update your accounting software
A key step is to make sure your accounting tools are compliant with the new requirements. Most modern systems, such as Lex Office, are already working to implement the appropriate features.
2. get ready to receive e-invoices
Receiving e-invoices in the new format doesn’t require complicated steps – just that your system allows you to receive documents in XML format.
3 Check if the regulations apply to your company
If you only serve individual customers or invoice small amounts, the new rules may not apply to you.
4. work with a tax advisor
If you have questions or concerns about the new regulations, it’s a good idea to consult with an expert who can help you through the adjustment process.
Why start preparing now?
Although the changes seem distant, the introduction of new rules requires adequate preparation. By taking action in advance, you can:
- Minimize the risk of technical problems.
- Ensure a smooth transition to the new standards.
- Take advantage of the benefits of automating accounting processes.
How can we help your company?
Our company offers support in the process of compliance with the new regulations. We help with:
- Selecting and implementing appropriate accounting software.
- Training for your team on how to use the new tools.
- Tax consultation to make sure your business is in compliance.
If you have questions or need support, please contact us. Together, we will walk you through the transformation to a modern and automated accounting system.
Don’t wait – get your company ready today!