Inez Berkhof-Hollander, EMEA MD at global B2B payments leader TreviPay
As the UK finalises proposals to mandate B2B e-invoicing, payments expert Inez Berkhof-Hollander explores how buyers and sellers are adapting to the EU Directive and the UK’s plans. Additional insight comes from payments industry representative Paul Rodgers
As part of its Digital Transformation Roadmap to reduce paperwork, modernise financial processes and improve tax compliance, the UK government in May concluded a consultation on whether e-invoicing—currently only required within the NHS—should become standard across all B2B transactions in both the private and public sectors.
This would enable buyers and sellers to exchange data in a convenient digital format that would also be visible to the tax authorities. While most agree mass adoption before 2030 is unlikely, the push for more structured, transparent B2B processes has been widely welcomed and is and is increasingly seen as the emerging standard.
Across the Channel, e-invoicing has been standard since 2020, though implementation varies by country. Brands operating in Europe are already familiar with the challenges and opportunities of moving away from paper invoicing—a learning curve that many UK firms may soon face for the first time.
Implications of the EU Directive and the UK’s plans
The EU’s ultimate goal is fraud prevention and trade transparency, as paper invoices remain untraceable and difficult to audit. Discrepancies between VAT reported by sellers and reclaimed by buyers cost governments an estimated €90bn annually.
To address this, the EU is mandating digital invoicing, requiring real-time, digital communication between companies and tax authorities across all member states. Implementation, however, varies: Italy mandates direct integration with VAT systems, while Germany takes a lighter approach, allowing businesses greater leeway in formats and submission methods. The Netherlands and Poland are adopting different methods, with varying rules on formats such as PDFs and other technical requirements. Buyers also carry legal responsibilities—for example, in Germany, they must accept digital invoices as a minimum standard.
The good news is, through our work with clients across the EU and UK, I’ve seen organisations on the buyer and seller sides actively adapting to, or preparing for, the EU Directive and the UK’s proposals.
In B2B payments, the key realisation is e-invoicing is more than the invoice. It starts with onboarding buyers and ensuring compliance with local and cross-border regulations. Failing to properly identify counterparties (KYC/KYB) to prevent money laundering, terrorist financing, fraud, and other financial crimes can carry serious penalties. For buyers and sellers alike, the message is clear: the era of manual, fragmented invoicing is coming to an end.
E-invoicing will boost business
While regulations bring complexity, they also offer significant benefits. Transparent digital invoicing builds trust between buyers and sellers, streamlines processes, and levels the playing field.
However, these benefits only materialise if companies prepare, and the time to start is now. For companies heavily invested in older EDI or ERP systems, upgrades will be necessary, but many will be reluctant to start. The sunk cost fallacy can be a real barrier, as existing systems may require substantial updates—or in some cases be too outdated to meet the new requirements at all.
The long-term payoff of improved efficiency, easier reporting, streamlined tax and VAT compliance, and reduced fraud should justify the costs of upgrading. Yet a UK Plc-wide pivot to e-invoicing requires investment, resources, and often expert guidance. At a recent payments salon in London, one expert made a compelling point: companies should go beyond minimal compliance and consider aligning e-invoicing with digital payments. “When coupled with payments, electronic invoicing unlocks far greater value, helping you manage incoming and outgoing payments more efficiently.”
In other words, e-invoicing may begin as a compliance requirement, but it can also be a springboard for broader digital transformation. The opportunity lies in aligning e-invoicing with digital payments to unlock greater benefits—better cashflow control, deeper insight into partners, and more efficient operations—within the wider shift toward fully digitised business processes.
BOXOUT: Payments industry views on UK shift to e-invoicing
Vendorcom, a membership group in the European Payments Community, shares insights through chairman Paul Rodgers on the UK’s plan to mandate e-invoicing by 2030.
“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, business customers may be hidden within the consumer buyer channels and, when it comes to e-invoicing, merchants must develop a strategy to discover and engage with these customers as businesses—not simply for compliance reasons—but to offer the advantages of a more appropriate business customer experience.
“Regarding whether e-invoicing should be voluntary or mandatory, flexibility is key. Forcing change disrupts buying patterns and adds costs short term. If made mandatory, a realistic timeline is essential—five years is sensible, but changes to payment systems can take 10 years due to investment and complexity.
“Also, 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.”
