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In recent years, governments worldwide have introduced initiatives to encourage e-billing adoption. While some focus on incentives and awareness, others enforce compliance through regulations. The European Union’s “VAT in the Digital Age” (ViDA) initiative, adopted in November 2024, exemplifies this trend by aiming to modernize VAT processes and address cross-border issues like local VAT registration. Additionally, many EU member states have already implemented or are drafting their own e-invoicing rules.

Businesses that have yet to prepare for mandatory e-invoicing should start now with a structured approach.

This article outlines key steps to help organizations prepare for the transition while highlighting how e-invoicing can be a transformative opportunity rather than a mere compliance burden.

Step 1: Assemble a Team and Plan

Start by forming a dedicated project team comprising representatives from all affected departments, such as finance, IT, and legal. Evaluate the legal requirements, your existing invoicing workflows, costs, and whether automation solutions are already in place. Assess the technology currently used and its compatibility with third-party software. Analyze accounts payable and receivable processes to determine if your suppliers and customers can already handle e-invoices.

Step 2: Analyze Your Current Processes

Conduct a detailed assessment of your existing invoicing processes to identify inefficiencies and potential cost savings. Explore whether moving applications to the cloud can further streamline operations. Evaluate supplier and customer readiness for e-invoicing and determine if strategies are needed to encourage adoption. A well-executed e-invoicing solution can deliver returns on investment in under six months, according to consultancy BearingPoint.

Step 3: Select the Right Software

Prepare a comprehensive list of requirements, including analysis results and project details, to guide software selection. Consider factors such as supported countries, formats, and portals, as well as integration with ERP systems and compliance with specific business needs. Choose a provider with a robust portfolio and ensure the solution can handle both legal and technical requirements.

Step 4: Plan for Success

Internal communication is crucial for a smooth implementation. Launch the project with a kick-off event to define goals, responsibilities, and communication plans. Involve all stakeholders early to address additional requirements and ensure cross-departmental collaboration.

Step 5: Implement the Solution

Roll out the e-invoicing solution in collaboration with internal teams. For example, our cloud-based solution, xSuite eDNA, eliminates lengthy implementation processes by integrating seamlessly with ERP systems like SAP. It processes invoices through networks such as Peppol, converting them into a standardized format that downstream workflows can handle effortlessly. The platform also validates invoices, creates legally compliant outbound invoices, and archives them for future reference.

Step 6: Monitor and Optimize

Once live, continuously monitor the system to identify potential issues and assess the need for additional features. Stay updated on new e-invoicing formats and enhancements to ensure smooth operations. Report any problems to the service provider promptly for resolution.

Conclusion

The transition to mandatory e-invoicing is inevitable, and businesses must adapt to stay competitive. IT and legal teams play a crucial role in ensuring compliance and efficiency. However, it’s important to view this shift as more than just a regulatory hurdle.

E-invoicing offers significant benefits, including streamlined workflows, reduced costs, improved process quality, and enhanced business continuity. By adopting a proactive and well-structured approach, companies can turn this requirement into a strategic advantage.

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