What is XML e-invoicing?
A PDF invoice is just a picture of an invoice; a person or OCR tool still has to read it. An XML e-invoice contains the same information as structured data (seller, buyer, line items, tax and totals) in a defined format, so software can read and post it without re-keying.
Common XML invoice standards
- UBL (Universal Business Language): an OASIS standard widely used in Europe and beyond.
- Peppol BIS Billing: a UBL-based format exchanged over the Peppol network, used across Europe, Australia, Singapore and other countries.
- EN 16931: the European e-invoicing standard.
- Country formats: for example FatturaPA in Italy and CFDI in Mexico.
E-invoicing mandates
Many governments now require e-invoices, often sent through a tax authority platform that validates each [invoice](/glossary/invoice) before or as it reaches the buyer. These clearance models help tax authorities reduce [VAT](/glossary/value-added-tax-vat) fraud and speed up audits. Mandates are spreading across Europe, Latin America, Africa, the Middle East and Asia.
Benefits
- Faster processing and payment
- Fewer errors and disputes
- Automatic matching with [purchase orders](/glossary/purchase-order)
- Easier tax compliance and audit trails
Getting ready
Check whether your country has or plans an e-invoicing mandate, and use accounting software that can issue and receive compliant structured invoices.