E-invoicing is increasingly being introduced across EMEA as governments seek to close VAT gaps, reduce fraud, and improve tax collection efficiency. Countries such as Italy, Romania, Hungary, and Saudi Arabia have already implemented comprehensive e-invoicing frameworks, with many others following suit, including France with a disruptive e-invoicing and e-reporting mandate coming into effect in 2026. This move aligns with the broader global trend of Continuous Transaction Controls (CTC), where tax authorities require real-time or near-real-time access to transactional data. For multinational companies, this means that manual processes and disparate systems no longer suffice. A centralized, automated approach is essential to meet these new demands.
Navigating regulation complexity across different jurisdictions can be daunting. Each country has its unique set of rules, formats, and timelines for e-invoicing, which can create compliance risks if not managed effectively. For example, Italy was the first country in the region to introduce a clearance e-invoicing model where e-invoices are required in a specific tax authority XML schema format, while Romania has a hybrid system with e-invoice clearance coupled with e-reporting requirements for transactions carried out by VAT-registered entities.
To tackle these challenges, multinational companies need to invest in scalable technology that ensures compliance with local regulations while integrating seamlessly with existing business processes. This is where partnering with tax compliance experts and leveraging comprehensive solutions can make a difference.