February 27, 2023
Electronic invoicing is on the rise across the globe — although at a varying pace in different regions. Today, we look at the Central and Eastern European countries, including the Baltics (Estonia, Latvia, and Lithuania), Poland, Hungary, Romania, and Bulgaria. Even though most countries are far from widespread e-invoicing adoption and continuous transaction monitoring, the changes currently implemented are notable.
It is expected that 2025 will mark a breakthrough in the e-invoicing policies in most European countries. The EU’s Next Generation funds will partly drive the taxation digitalization in Europe, together with business, industry, and public administration transformations. As part of these processes, the EU strives for a change in organizational culture across the continent that would place a focus on new technology adoption.
In terms of e-invoicing, Southern European countries like Italy, France, Portugal, and Spain were the early adopters. In these countries, electronic invoicing and VAT declarations are either partly or fully implemented.
In the CEE, the situation is much more diverse. Most of the countries in the region have sophisticated reporting systems, some — integrated with SAF-T and similar protocols. Among these countries are Poland, Romania, Hungary, and Lithuania. Some countries — namely Poland, Romania, and Latvia — have already made a breakthrough in requiring e-invoicing for B2B transactions. The situation is different in Slovakia, which still hasn’t implemented the European requirements for e-invoicing adoption in the public sector.
It is expected that the funds and strategic focus on e-invoicing will support the digital transformation. The region has become increasingly stronger economically, and e-invoicing is hoped to further support the growth by making businesses more transparent and international trade-friendly.
Status quo in different countries:
Albania. E-invoicing has been fully implemented since 2021. The system is powered by the governmental central invoicing platform (CIS).
Bulgaria. E-invoicing requirements are in the plans, with public consultations taking place.
Croatia. Public sector e-invoicing requirements have been in place since 2019. XML invoices are managed via the Peppol network.
Slovakia. Public sector e-invoicing has been optional and managed via IS EFA. From April 2023, business-to-public sector invoices will be solely managed electronically.
Slovenia. Similarly to Slovakia, Slovenia uses Peppol to manage public sector invoices. E-invoicing in the public sector and business transactions is mandatory.
Estonia. Public sector e-invoicing has been in place since 2017.
Hungary. E-invoicing is mandatory only in the public sector. However, the NAV’s RTIR system has been in place for real-time tax administration since 2018.
Kazakhstan. Electronic invoicing was made mandatory in 2019. It is powered by the central EIIS platform.
Poland. The country has plans to implement e-invoicing widely in 2024, with the KSeF platform as the basis. Electronic VAT declarations through the SAF-T platform are already implemented in Poland.
Romania. Romania uses the RO e-Invoice platform to manage public sector and B2B invoicing. Businesses with high tax risk and B2B sector are required to submit e-invoices since July 2022. Tax information is submitted via SAF-T protocol to the ANAF.
Serbia. Since 2023, B2B e-invoicing has been in place. However, the transition started in 2022, and all businesses must be able to process and send e-invoices regardless of the requirements in place for their category.
Ukraine. E-invoices are mandatory and must be reported in XML format by the middle of next month.
If you own or manage a business and are preparing for digital transformation, e-invoicing is an important area for consideration. If you need any help with your tax compliance throughout the process, make sure to reach out to 1StopVAT’s team for professional support.