Definition
Electronic invoicing is not a Word document, PDF sent by email, or a photo of a receipt transferred via WhatsApp.
It is the digital exchange of an invoice between two entities for the purchase of goods or services. It is structured, machine-readable (or very geeky human), compliant with a data model, transferable via regulated networks.
B2B e-invoicing based on the standard EN 16931 is becoming widespread in Europe: member states can impose it without exception and are deploying it in phases — current schedule until January 2035(e.g. France starting from September 1, 2026, Germany mandatory receipt by January 1, 2025 then issuance in 2027–2028).
Lessons learned
- Standardize data before tooling. Platform countries (e.g. Italy) have shown that the quality of data (VAT, addresses, units, order references) is the primary factor for failure or success. MEF
- Choose the right exchange path. The adoption of Peppol by many administrations and businesses facilitates cross-border interoperability (four-corners, identifiers, certificates). OpenPeppol+1
- Prepare the downstream as well as the upstream. The receipt of e-invoices is often mandatory before the issuance — adapting accounts payable, the 3-way match of order-receipt-invoice, and internal controls is crucial.
- Measure the real gain. European studies show substantial savings (reduction of costs per invoice, shorter payment cycles) when processes are fully digital.
The concrete benefits of anticipating (for an SME)
- Reduction of processing costs: elimination of printing, postage, and data entry;decrease in cost per invoice thanks to structured flows and automation.
- Fewer errors and disputes: prior control (schema rules, validations), better traceability for auditing.
- Better cash flow : shorter payment cycles and associated financial gains (European studies).
- Access to regulated markets in Europe: being “Peppol-ready” or compatible EN 16931 is a prerequisite implicit/explicit for working with European clients (and increasingly, for public procurement).
- Regulatory resilience: preparing now means avoiding catch-up costs when a large client or a country requires e-invoicing. Taxation and Customs Union
The end of fraud?
Electronic invoicing does not eliminate tax fraud or accounting tricks, but it makes them much more difficult and risky. Every line becomes verifiable: unique identifiers, automatic tax checks, and order/receipt references. Coupled with 3-way matching and anti-duplicate rules, it blocks fake invoices, supplier impersonation, and “creative” adjustments, while speeding up audits with a complete digital trail.
For an SME, the effect is twofold: fewer unintentional errors and fewer opportunities for intentional concealment, with early alerts as soon as an anomaly falls outside the norm.
Final word
What is happening in Canada? There is no mandatory federal B2B requirement today; however, the public sector uses electronic procurement platforms (e.g., CanadaBuys/SAP Ariba), and suppliers must be able to exchange electronic documents.
Why adopt the proactive shift in Canada?
- Compliance by design (less stress during audits).
- Improved cash flow (shorter validation/payment cycle). Increased productivity (less data entry, fewer exceptions).
- Market access ease (EU, tenders, major accounts).
- Accès marché facilité (UE, appels d’offres, grands comptes).