EU e-invoicing a strategic enabler for a unified, interoperable digital economy
The European Commissions latest paper on improving the EU Single Market has highlighted the role of e-invoicing – including potentially mandating it as a native component for all accounting software and Enterprise Resource Planning (ERP’s) systems. The EC wants to tackle low-update of e-invoicing, lack of interoperability and underutilisation of data for VAT, customs and sustainability reporting.
This includes mandating e-invoicing via EU VAT in the Digital Age; mandating EN16931 EU e-invoice standard; and requiring e-invoicing components to be integrating into all accounting packages – similar to Denmark e-invoicing requirements. This would be left to member states to choose as the EU does not have powers to impose this. Lastly, wider integration with the EU Digital Identity Wallet.
EU’s planned measures & how accounting software fits in
Mandatory e-Invoicing Standard
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The Directive on e-Invoicing in public procurement will be upgraded to a Regulation by Q4 2026, making the EU eInvoicing standard mandatory.
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This removes flexibility in implementation and forces uniformity, improving cross-border invoice exchange and data reuse.
Integration into Accounting Software and ERP’s
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The EU plans to recommend that all accounting software include native e-invoicing modules.
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Simplify e-invoice creation and submission.
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Reduce the need for external e-invoicing tools or manual uploads.
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Automatically generate structured invoice data that meets EU standards (EN 16931).
This would:
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National certification schemes for software could ensure quality and compliance.
Reusing eInvoice Data for Broader Compliance
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VAT reporting: e-invoices can automatically populate VAT returns, aligned with ViDA,
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Sustainability reporting: Pilot projects will link invoice data to environmental metrics.
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Customs declarations: Integration with the EU Customs Data Hub will allow customs authorities to access invoice data directly for import/export checks.
How it connects to other digital tools
e-Invoicing will work in tandem with a wider EU digital infrastructure, including:
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European Business Wallet: A digital container for credentials and documents (launching Q4 2025).
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EU Digital Identity Wallet: Secure cross-border ID system (Q4 2026).
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Digital Product Passport (DPP): For storing product conformity and sustainability data.
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Once Only Technical System: To avoid repetitive submission of business data to authorities.
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IMI (Internal Market Information System): Streamlining regulatory communication across Member States.
Big Picture: a cohesive digital ecosystem
All these systems will interconnect, enabling:
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Real-time data sharing between businesses and authorities.
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Reduced administrative burdens, especially for cross-border transactions.
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Greater transparency, compliance, and economic integration.
The EU’s push to integrate e-Invoicing deeply into business software—particularly accounting systems—aims to:
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Simplify regulatory compliance,
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Enhance interoperability across borders,
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And reduce administrative costs.
If successful, this could make real-time tax and customs reporting, sustainability tracking, and business registration as seamless as sending an email.
