E-invoicing allows businesses to exchange invoice data electronically, improving tax compliance and efficiency, though it is not mandatory in the U.S. The government is gradually promoting its adoption, with initiatives like the Business Payments Coalition and the Federal Reserve testing a B2B exchange network.
Understanding Digital Reporting and e-Invoicing in the USA
Public
Other countries
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
220
Content accuracy validation date:
14.03.2025
Content accuracy validation time:
08:11h
Digital reporting (e-reporting) involves submitting tax-related data electronically to the IRS, while e-invoicing allows businesses, suppliers, and tax authorities to exchange invoice information automatically. Many modern ERP systems can extract and format invoice data for tax reporting, audits, and dispute resolution.
Many countries are adopting real-time tax compliance to reduce fraud and tax evasion. They require e-invoicing to track transactions and participants while also improving business efficiency by reducing errors and saving time on manual processing.
E-Invoicing in the USA
Unlike other countries, e-invoicing is not mandatory at the federal or state level in the U.S. However, businesses can use it voluntarily to improve tax compliance. The IRS provides identification numbers, but they are not required on electronic invoices. The U.S. government is gradually encouraging e-invoicing, including through the Business Payments Coalition (BPC) and the Federal Reserve, which tested an exchange network for B2B transactions in 2022.
What are the types of e-Invoicing in the USA?
- B2B e-Invoicing: Used by businesses to improve transaction speed and accuracy,
- B2G e-Invoicing: Some states and government agencies require suppliers to submit invoices electronically for faster processing,
- B2C e-Invoicing: Common in retail and services, allowing businesses to provide digital invoices instantly.
Who must use e-Invoicing?
No general requirement for businesses.
Some government contractors and suppliers must submit e-Invoices in states that mandate it.
The rules vary by state and industry.
How does E-Invoicing work in the USA?
- Generating and Sending Invoices
Since there are no official U.S. guidelines, businesses use different methods, such as automated systems or PDF invoices via email.
Free e-invoicing software is available to create invoices, which should include key details like business and client names, invoice numbers, dates, payment terms, and sales tax if applicable.
A clear numbering system helps organize and retrieve invoices efficiently.
- Receiving and Processing Invoices
Businesses may face system compatibility issues, making it difficult to open certain electronic invoices.
Many companies use e-invoicing service providers to ensure invoices are accessible, often using a four-corner model like PEPPOL, where both the buyer and seller have a provider.
While not required by law, the U.S. government is taking steps to promote digital invoicing, particularly in B2G transactions. In 2015, the Office of Management and Budget (OMB) encouraged federal agencies to adopt e-invoicing, but it remains optional.
E-invoicing can simplify tax compliance, improve efficiency, and reduce manual work, making it a valuable tool for businesses looking to streamline their processes.
Other news from Other countries
South Africa Updates VAT Rules for Foreign Digital Suppliers (April 2025)
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
South Africa’s new VAT rules (Regulations No. 5993, effective 1 April 2025) update the treatment of electronically supplied services by foreign digital providers. B2B-only suppliers no longer need to register for VAT, while B2C and mixed suppliers must register if their turnover exceeds the threshold. Intra-group digital services are VAT-exempt under specific conditions. The changes aim to moderni... Read more
Netherlands and EU's ViDA: New VAT Rules for Platforms in Accommodation & Transport
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Under the EU’s ViDA initiative, new VAT rules from March 2025 make platforms in the accommodation and transport sectors liable for VAT on short-term stays (≤30 nights) and road transport, unless the supplier provides a valid VAT/OSS ID or qualifies under an SME scheme. B2C services are taxed where used, B2B where the recipient is based. Platforms must keep transaction records for 10 years. The rul... Read more
Understanding U.S. Sales Tax for Online Retailers
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
In 2024, U.S. ecommerce reached $1.192 trillion, with most online purchases involving taxable goods. Sales tax rates vary across more than 13,000 jurisdictions, and the applicable rate depends on state-specific sourcing rules, typically based on the shipping address, but sometimes the seller’s or billing address. Retailers must stay compliant with each state’s rules, including how shipping fees ar... Read more
Vietnam's New E-Invoicing Rules: What You Need to Know (Starting June 1, 2025)
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Vietnam's Decree 70/2025/ND-CP amends Decree 123/2020/ND-CP, enhancing e-invoicing for digital and cross-border businesses. It expands e-invoicing scope, sets issuance timelines, mandates invoice content and format, and requires businesses with over VND 1 billion(38483.80USD) revenue to use cash register e-invoices linked to tax authorities. Vietnam is updating its e-invoicing system through Decre... Read more
Latvia Embraces Digital Invoicing
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Latvia is implementing mandatory e-invoicing starting in 2025 to simplify transactions, boost tax compliance, and reduce the shadow economy. The centralized model will be implemented for B2G transactions and B2B transactions in 2026. The initiative aims to reduce tax evasion, increase efficiency, and standardize EU-compliant formats. Challenges include technical upgrades, staff training, and initi... Read more
US and EU Join Forces to Improve e-Invoicing Compatibility
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
At the sixth Trade and Technology Council meeting, the US and EU agreed to strengthen electronic invoicing (e-invoicing) compatibility to lower trade costs, improve security, and simplify cross-border business operations. A new oversight body, the DBNAlliance, was launched to manage a shared exchange framework, allowing businesses to send and receive e-invoices through certified service providers.... Read more
Malaysia's E-Invoicing: MyInvois System Goes Live, Phased Implementation
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Malaysia is gradually implementing mandatory e-invoicing from August 2024 to January 2026 for businesses with sales over RM150,000. Invoices must be approved by the tax authority before being sent to customers, using the MyInvois system and Peppol network. The rollout supports Malaysia’s push to modernize tax reporting and improve compliance. Malaysia is rolling out its MyInvois e-invoicing system... Read more