Global Embrace of eInvoicing Targets Fraud

Businesses want to be paid in a timely manner.

Governments want tax revenue.

The advantages of cutting down on paper — and, specifically, paper invoices — can improve supply chain dynamics across any number of B2B verticals.

Automating invoicing, with the rise of digital options in doing so, has taken root in Europe through a series of mandates, while in the United States the shift has been largely market driven. The approaches may differ, but overall, cutting down on manual data entry and cutting down on the time it takes to process invoices holds universal appeal … with the positive ripple effect of better cash flow. In addition, there’s the ability to reduce fraud.

In Europe, where Italy, Greece, France, Germany and Spain have mandated eInvoicing, and as noted in a report from the European Union, emerging technologies such as artificial intelligence (AI) and machine learning have helped streamline the collection of invoice-related information. Those technologies are proving adept at detecting anomalies. Elsewhere, the EU added that the electronic creation and use of those invoices can “automatically compile and submit VAT returns and customs declarations.”

Better Tax Collection

“Authorities can use e-Invoicing as the base layer for predicative tax calculations. Efficiency can be gained if predicative models are powered by Artificial Intelligence, whilst ensuring that the calculation is verified through human intervention,” noted the EU. In other studies, European regulators noted that the shift to digital exchanges of information, including eInvoicing, have helped close the VAT collection “gap” by tens of billions of euros.

In the PYMNTS Intelligence report “AP Automation Significantly Reduces Friction in the Source-to-Pay Cycle,” we found that 25% of companies said that invoice errors and discrepancies as the top areas of disruption they recently faced in paying and getting paid. And 83% of CFOs said that digital technologies supporting AP workflow automations have reduced frictions by better integration of buyer and supplier payments.

Cumulatively there are around 80 countries in some stage of mandating eInvoicing, and non-EU countries such as Australia and Japan have made strides toward eInvoicing as well. The process has been a staggered one, and in some cases the adoption is taking time. France stands out here, as the shift was slated to start this past summer, but larger firms have until September of 2026 to fully embrace eInvoicing.

The Initiatives in the States and Elsewhere

In the United States, we may see a bit more “top down” approach to eInvoicing, as the Federal Reserve has been piloting, with the Business Payments Coalition along, a standardized eInvoicing model and exchange network.

Individual company initiatives and platforms have been launching new solutions to further the embrace of eInvoicing. As reported here, Deloitte and Basware have partnered to facilitate accounts payable (AP) automation, touchless invoicing and compliance with eInvoicing regulations for global customers.

And in another example, Sovos, a global tax software provider, has joined forces with PwC in Belgium to streamline the adoption of e-Invoicing among businesses. The partnership between Sovos and PwC in Belgium is set against the backdrop of increasing global regulatory mandates that require businesses to adopt eInvoicing for tax compliance purposes, the companies said earlier this year.