US and EU Join Forces to Improve e-Invoicing Compatibility

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.

During the sixth Trade and Technology Council (TTC) meeting, the United States and the European Union committed to improving electronic invoicing (e-invoicing) compatibility. The goal is to reduce global trade costs, enhance security, and streamline business processes like customs, payments, and fraud prevention.

Both sides agreed to a shared set of principles for e-invoicing:

• One connection, global access,
• No fees for switching service providers (Access Points),
• Open exchange networks where users can choose their own Access Point.

The US and EU will continue working together to ensure:

• Flexible data structures that support local legal needs but maintain core standards,
• Aligned invoice information so data is compatible across systems,
• Roaming capabilities that let users connect with each other regardless of service provider.

To support this effort, a new oversight body called the DBNAlliance has been launched from the US E-invoicing Pilot Project. It will:

• Define technical standards, policies, and security rules,
• Offer memberships to service providers (not businesses directly),
• Ensure all service providers can communicate within the network.

Businesses don’t need to join the alliance themselves, they just need a provider who is a member to send and receive e-invoices within the framework.

The Exchange Framework is a technical network designed for safe, standardized sharing of digital documents like invoices. It solves common problems such as how to connect systems, transfer information securely, and enable automation.

It uses a Four-Corner Model, where:

• All businesses act as both senders and receivers,
• Documents are exchanged through certified Access Points,
• Once connected, companies can send invoices to any other business on the network.

It supports:

• AS2/AS4 protocols,
• UBL 2.x structured formats (invoices, credit notes),
• Attachments and electronic signatures,
• Detailed data fields (e.g., supplier/customer info, shipping, taxes, payment info).

The US e-Invoicing Pilot

Led by the Business Payments Coalition and the Federal Reserve, the US tested a national e-invoicing model across three pilot waves in 2022. Over 80 organizations helped finalize specifications, and the system is now ready for widespread use.

E-invoicing helps businesses:

• Automate purchasing and payment workflows,
• Reduce errors, delays, and costs,
• Improve supply chain efficiency and visibility,

Enable cross-border communication and integration.

With both the US and EU aligned on a shared vision for e-invoicing, global trade can become more efficient, secure, and digitally connected than ever before.