Revision of the European E-Invoicing Standard
The European Committee for Standardization’s (CEN) Technical Committee 434 (CEN/TC 434) is revising the EN 16931-1 e-invoicing standard to align with upcoming legislative changes, including the ViDA proposal and Germany’s forthcoming B2B e-invoicing mandate, which takes effect on January 1, 2025.
Why is the standard being revised?
Initially developed for Business-to-Government (B2G) transactions, the EN 16931-1 standard did not cover Continuous Transaction Controls (CTC), tax reporting, or business sector e-invoicing. With ViDA and Germany’s new rules relying on EN 16931-1, the committee is updating the standard to incorporate features necessary for these applications.
What updates to EN 16931-1 can we expect?
The revisions include several enhancements, such as:
- ViDA-Driven Updates: Mandating IBANs, incorporating margin schemes, adding goods/services indicators, and enabling reporting of base amounts in both accounting and reporting currencies.
- E-Invoicing for Businesses: Supporting multiple orders and deliveries, enabling XML document attachments, and introducing classifications for invoice type codes.
- B2B VAT Improvements: Including new VAT category codes for national schemes, reasons for VAT exemptions, and additional classifications for VAT handling.
- Advanced Invoice Management: Allowing invoices to specify issuance times, detailing payment information (e.g., VAT amounts, payment dates, references), supporting early payment discounts and penalties for late payments, and enabling multiple buyer identification codes.
These updates aim to streamline invoicing processes, ensuring compliance with evolving regulatory requirements across the EU while supporting the broader adoption of digital invoicing practices.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
