Mandatory electronic invoicing between companies means reviewing billing software, internal processes and record-keeping periods. Here is what an SME needs to do to be ready in time.
Who it applies to
The obligation covers commercial relationships between companies and professionals, regardless of size. This is not a large-company matter: any business or self-employed professional invoicing another company will eventually fall within the system.
The timetable has been staggered according to annual turnover, so larger companies come in first. It is worth confirming which band your business falls into, because that determines how much preparation time you actually have.
What to review first
Start with the billing software. It must be able to issue and receive invoices in a valid structured format, not simply generate a PDF. Many management systems already support this, but the functionality is often switched off or requires a licence upgrade.
Next comes the internal workflow. You need to define who issues, who approves and who archives, and make sure invoice states (accepted, rejected, paid) are recorded properly, since they form part of the information that has to be reported.
Third is retention. Electronic invoices must remain complete and legible for the full limitation period, which in practice requires a backup policy that does not depend on one machine or a local folder.
The mistakes that cause most trouble
The most common is assuming the accountant handles everything. The obligation to issue in electronic format sits with the issuing company, not its adviser, and a delay in adapting the software is the business's own responsibility.
It is also common to neglect customer and supplier master data. A mistyped tax number or an outdated company name, which until now was corrected informally, can trigger automatic rejection of the invoice.
Our recommendation
We suggest running a live test before the obligation bites: issue and receive electronic invoices with a couple of regular customers and suppliers, and confirm the full cycle works end to end.
If you would like us to review your specific position, get in touch and we will go through the timetable that applies to you and the adjustments your billing system needs.
