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Why E-Invoicing Offers an Opportunity to Modernise, Build Trust, and Improve Cash Flow
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As the UK finalises proposals to mandate B2B e-invoicing, payments technology expert Inez Berkhof-Hollander explains why this move should be viewed not as a regulatory burden, but as a strategic opportunity for digital transformation
As the UK finalises proposals to mandate B2B e-invoicing, payments technology expert Inez Berkhof-Hollander explains why this move should be viewed not as a regulatory burden, but as a strategic opportunity for digital transformation
As part of its Digital Transformation Roadmap to cut paperwork and improve tax compliance, the UK government recently closed a consultation on extending e-invoicing for all B2B transactions, making data visible to tax authorities. But the real question for business is: should we want this?
The move has broad support, though even its strongest proponents admit full UK adoption is unlikely before 2030. Still, the direction is clear. Across Europe, e-invoicing has been standard since 2020, even if implementation varies by country.
Brands already operating in Europe are likely familiar with the challenges of this shift—challenges many UK businesses have yet to face, aside from those already working within the NHS ecosystem and the PEPPOL link.
Is e-invoicing’s future digital and integrated?
Working with clients across the EU and UK, I’ve seen how both buyers and sellers are responding to the EU Directive and the UK’s evolving approach. One key takeaway: e-invoicing isn’t only about sending invoices, it starts much earlier with buyer onboarding and ensuring compliance.
It’s essential to align with regulations in both your home country and any countries where your customers are based. This is particularly critical for cross-border trade, where failure to properly identify counterparties (KYC/KYB) can lead to significant penalties.
For our customers, it’s become clear: compliance is at the heart of e-invoicing. The EU’s push toward 2030 is driven by a need to reduce fraud and increase transparency, addressing long-standing gaps caused by the lack of real-time links between sellers, buyers, and VAT authorities.
Mismatches between VAT claimed by buyers and VAT reported by sellers continue to expose a significant loophole. These discrepancies create opportunities for fraud, costing EU governments up to €90 billion annually.
To tackle this, the EU is introducing mandatory digital invoicing to ensure real-time data flows between companies and tax authorities. Implementation is left to individual member states, so businesses operating in multiple countries must align with a patchwork of national rules. Italy, for example, enforces direct integration with VAT systems, while Germany allows more leeway. Meanwhile, the Netherlands and Poland are adopting their own formats and technical standards.
In the end, for buyers and sellers across Europe, and likely soon the UK, these national differences will matter less, as e-invoicing is introduced in phases. The bottom line is that the days of manual, disjointed invoicing are coming to a close.
E-invoicing will boost business
This shift is simply the new reality—and largely a positive one. Transparent digital invoicing builds trust, strengthens B2B relationships, and supports smoother e-commerce by providing clear, consistent formats and delivery methods. That clarity simplifies purchasing decisions and levels the playing field for all.
Still, the move to e-invoicing isn’t easy. It’s not only sellers who must adapt, buyers now carry legal obligations too. In Germany, for example, buyers are required to accept digital invoices, via PDF, email, or Excel, as the minimum standard. Insisting on paper disrupts the digital chain and risks non-compliance for both sides.
Not every buyer is ready for this transition, especially those still reliant on traditional paper-based processes. Paul Rodgers, chair of payments industry membership association Vendorcom, argues that the HM Government and the business software industry must ensure the transition is practical, inclusive, and beneficial for all stakeholders. He said, “There’s a risk regulators focus only on corporate procurement systems like Oracle or SAP, ignoring that many companies value flexible payment options. Enterprise payments have evolved with EDI and ERP to standardise invoicing, but smaller businesses often use diverse, ad hoc payment methods like trade cards.
“Any move to standardise e-invoicing must consider these differences to avoid harming smaller firms. If e-invoicing distinguishes between merchant payments and corporate procurement flows, it could benefit merchants by identifying unusual buying patterns, though this isn’t widespread yet in the UK. Also, the government must pressure system providers to support interim solutions to ease transitions. Ultimately, the proposal has value but must recognise different stakeholder needs, maintain flexibility, and get industry support to succeed in the UK.”
In summary, how UK businesses approach e-invoicing will depend on their specific operations, but most will need external guidance, especially from tax and compliance experts. At a recent fintech payments salon hosted by my company in London, one speaker made a key point: don’t stop at basic compliance. Instead, organizations need to align their e-invoicing strategy with digital payments to unlock greater operational value and future-proof their processes.
Adopting e-invoicing won’t simply prepare businesses for upcoming regulatory changes, it can also deliver tangible business value, like stronger cash flow management and better visibility into transactions and counterparties. As the speaker our London salon noted: “The real benefits of e-invoicing come from gaining deeper insight into who you’re working with and how payments flow.”
The transition underway across the EU and UK is significant. Yes, it requires investment and adjustment, but once embedded, it streamlines operations and enhances B2B trade. By preparing early, businesses can go beyond compliance to unlock broader efficiencies. In fact, many of the companies we work with now see e-invoicing as a springboard for wider digital transformation.
The author is EMEA Vice President for TreviPay, the global B2B payments network
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