A frequently asked question from organisations is whether they are required to send or receive e-invoices. The answer does not depend on a single rule but on a combination of factors: where your organisation is established, who you do business with and what role you play yourself. On this page you will find out which types of obligations exist and how to determine, step by step, what applies to your organisation.
This page is deliberately general. Current obligations per country appear at the bottom of this page, in the news items and blogs linked to this topic. New to e-invoicing? Start with What is e-invoicing.
What types of obligations exist?
Government receives e-invoices (B2G receipt)
Suppliers send e-invoices to government (B2G sending)
E-invoicing between businesses (B2B)
E-reporting and continuous transaction controls (CTC)
What this means for you as a business owner: how to determine what applies
These forms occur separately but also in combination. A country may, for example, require B2G sending and at the same time have an e-reporting obligation for all VAT-liable transactions. Always look at the full set of rules that applies to your situation. Answer the following questions: together they give a clear picture of the obligations relevant to your organisation.
In which country or countries is your organisation established?
The rules of your country of establishment are the starting point. If you have establishments in several countries, a different obligation may apply to each.
In which countries are your customers established?
Some obligations apply based on where the transaction is taxed or where the customer is located. Even if your own country has no obligation, a customer in another country may ask for an e-invoice in a specific format.
Do you supply public sector organisations?
Then B2G rules are likely to apply. Check whether the public sector organisation merely accepts or actually requires e-invoices, and through which channel.
Are you a public sector organisation yourself?
Then an obligation to receive generally applies. See below what this means for your own process.
What is your VAT registration status in the relevant countries?
Many obligations are linked to a VAT registration. If you are VAT-registered in another country, that country's rules may also apply to you, including any e-reporting obligations.
Do you trade B2B across borders?
In cross-border transactions, the rules of several countries can apply at the same time. A network such as Peppol helps to exchange e-invoices across borders in a standardised format.
Still unsure after answering these questions? Discuss your situation with your tax adviser or accountant. They can assess exactly which rules apply to your organisation.
Getting ready: these steps always apply, whatever the country
Know which obligations apply to you?
Find a solution in the comparison tool that meets them.
Compare e-invoicing solutionsWhat does this mean for public sector organisations?
For public sector organisations, the focus is first and foremost on their own receiving process. Make sure e-invoices arrive through the common channels, are validated automatically and reach the financial administration without manual steps. Also consider how you inform suppliers: make clear how you receive e-invoices, which details must appear on the invoice (such as a purchase order number or reference) and what happens to invoices that do not meet the requirements. Clear communication prevents rejected invoices and delayed payments.
What does this mean for software vendors?
For software vendors, obligations define the requirements for their product. Customers expect their software to create, send, receive and process e-invoices in the required formats, and to connect to the Peppol network, either directly or through a Peppol Serviceprovider. Where e-reporting or CTC applies, connections to tax authority platforms are added to that list. Because obligations differ per country and can change, a flexible architecture that can take on new formats and reporting rules is an important selling point.
From obligation to solution
The route can be summed up in three steps: determine which obligation applies to you, prepare your organisation and systems, and then choose a solution that fits your situation. In the comparison tool on peppol.nu you can compare Peppol Serviceproviders and e-invoicing solutions side by side, so you can make a well-founded choice for a solution that meets your obligations.
