<s>
Electronic	B-Application
invoicing	I-Application
(	O
also	O
called	O
e-invoicing	B-Application
or	O
einvoicing	O
)	O
is	O
a	O
form	O
of	O
electronic	B-Application
billing	I-Application
.	O
</s>
<s>
E-invoicing	B-Application
methods	O
are	O
used	O
by	O
trading	O
partners	O
,	O
such	O
as	O
customers	O
and	O
their	O
suppliers	O
,	O
to	O
present	O
and	O
monitor	O
transactional	O
documents	O
between	O
one	O
another	O
and	O
ensure	O
the	O
terms	O
of	O
their	O
trading	O
agreements	O
are	O
being	O
met	O
.	O
</s>
<s>
E-invoicing	B-Application
includes	O
a	O
number	O
of	O
different	O
technologies	O
and	O
entry	O
options	O
and	O
is	O
used	O
as	O
an	O
umbrella	O
term	O
to	O
describe	O
any	O
method	O
by	O
which	O
an	O
invoice	O
is	O
electronically	O
presented	O
to	O
a	O
customer	O
for	O
payment	O
.	O
</s>
<s>
An	O
e-invoice	O
can	O
be	O
defined	O
as	O
structured	O
invoice	O
data	O
issued	O
in	O
Electronic	O
data	O
interchange	O
(	O
EDI	O
)	O
or	O
XML	B-Protocol
formats	O
,	O
possibly	O
using	O
Internet-based	O
web	O
forms	O
.	O
</s>
<s>
These	O
documents	O
can	O
be	O
exchanged	O
in	O
a	O
number	O
of	O
ways	O
including	O
EDI	O
,	O
XML	B-Protocol
,	O
or	O
CSV	O
files	O
.	O
</s>
<s>
Some	O
companies	O
have	O
their	O
own	O
in-house	O
e-invoicing	B-Application
process	O
;	O
however	O
,	O
many	O
companies	O
hire	O
a	O
third-party	O
company	O
to	O
implement	O
and	O
support	O
e-invoicing	B-Application
processes	O
and	O
to	O
archive	O
the	O
data	O
on	O
their	O
own	O
servers	O
.	O
</s>
<s>
The	O
.INV	O
file	O
can	O
be	O
in	O
standards-compliant	O
XML	B-Protocol
format	O
.	O
</s>
<s>
They	O
allowed	O
for	O
online	O
submission	O
of	O
individual	O
invoices	O
as	O
well	O
as	O
EDI	O
file	O
uploads	O
,	O
including	O
the	O
CSV	O
,	O
PDF	O
,	O
and	O
XML	B-Protocol
formats	O
.	O
</s>
<s>
As	O
companies	O
advance	O
into	O
the	O
digital	O
era	O
,	O
more	O
and	O
more	O
are	O
switching	O
to	O
electronic	B-Application
invoicing	I-Application
services	O
to	O
automate	O
their	O
accounts	O
payable	O
departments	O
.	O
</s>
<s>
The	O
2012	O
Global	O
E-Invoicing	B-Application
Study	O
illustrated	O
the	O
rate	O
at	O
which	O
electronic	B-Application
invoicing	I-Application
is	O
growing	O
.	O
</s>
<s>
According	O
to	O
the	O
study	O
,	O
73%	O
of	O
respondents	O
used	O
electronic	B-Application
invoicing	I-Application
to	O
some	O
degree	O
in	O
2012	O
,	O
a	O
14%	O
increase	O
from	O
2011	O
.	O
</s>
<s>
Supplier	O
resistance	O
to	O
e-invoicing	B-Application
has	O
decreased	O
from	O
46%	O
in	O
2011	O
to	O
26%	O
in	O
2012	O
.	O
</s>
<s>
According	O
to	O
a	O
report	O
done	O
by	O
the	O
GXS	O
in	O
2013	O
,	O
Europe	O
is	O
adopting	O
government	O
legislation	O
encouraging	O
businesses	O
to	O
adopt	O
electronic	B-Application
invoicing	I-Application
practices	O
.	O
</s>
<s>
The	O
United	O
States	O
treasury	O
estimated	O
that	O
implementing	O
e-invoicing	B-Application
across	O
the	O
entire	O
federal	O
government	O
would	O
reduce	O
costs	O
by	O
50%	O
and	O
save	O
$450	O
million	O
annually	O
.	O
</s>
<s>
The	O
EU	O
's	O
Directive	O
2014/55/EU	O
on	O
electronic	B-Application
invoicing	I-Application
in	O
public	O
procurement	O
noted	O
that	O
"	O
several	O
global	O
,	O
national	O
,	O
regional	O
and	O
proprietary	O
standards	O
exist	O
;	O
...	O
none	O
of	O
them	O
prevail	O
and	O
most	O
of	O
them	O
are	O
not	O
interoperable	O
with	O
one	O
another	O
"	O
.	O
</s>
<s>
Under	O
EU	O
Directive	O
2014/55/EU	O
on	O
electronic	B-Application
invoicing	I-Application
in	O
public	O
procurement	O
,	O
the	O
EU	O
commissioned	O
the	O
development	O
of	O
a	O
"	O
European	O
standard	O
on	O
electronic	B-Application
invoicing	I-Application
"	O
.	O
</s>
<s>
To	O
enable	O
e-invoicing	B-Application
,	O
there	O
must	O
be	O
an	O
existing	O
method	O
of	O
viewing	O
the	O
transactions	O
,	O
typically	O
an	O
ERP	O
(	O
Enterprise	O
Resource	O
Planning	O
)	O
or	O
accounting	O
system	O
.	O
</s>
<s>
Once	O
the	O
e-invoicing	B-Application
specification	O
is	O
finalized	O
and	O
testing	O
is	O
complete	O
,	O
the	O
business	O
's	O
suppliers	O
are	O
connected	O
electronically	O
,	O
and	O
the	O
e-invoicing	B-Application
system	O
is	O
ready	O
.	O
</s>
<s>
Several	O
governments	O
and	O
tax	O
administrations	O
imposed	O
e-invoicing	B-Application
formats	O
in	O
their	O
respective	O
jurisdiction	O
for	O
all	O
Business-to-Business	O
(	O
B2B	O
)	O
transactions	O
,	O
and	O
required	O
that	O
the	O
emitted	O
documents	O
be	O
stored	O
in	O
centralized	O
repositories	O
,	O
often	O
controlled	O
by	O
the	O
tax	O
administration	O
.	O
</s>
<s>
In	O
the	O
European	O
Union	O
,	O
France	O
introduced	O
mandatory	O
government-controlled	O
B2B	O
e-invoicing	B-Application
starting	O
July	O
2024	O
.	O
</s>
<s>
The	O
primary	O
goal	O
of	O
government-controlled	O
e-invoicing	B-Application
is	O
to	O
reduce	O
corporate	O
tax	O
fraud	O
.	O
</s>
<s>
Per	O
a	O
published	O
by	O
the	O
Harvard	O
Kennedy	O
School	O
of	O
Government	O
,	O
Mexico	O
’s	O
tax-to-GDP	O
ratio	O
rose	O
from	O
12.6	O
%	O
to	O
16.2	O
%	O
between	O
2012	O
and	O
2017	O
,	O
driven	O
largely	O
by	O
a	O
48%	O
increase	O
in	O
revenue	O
from	O
tax	O
on	O
goods	O
and	O
services	O
after	O
e-invoicing	B-Application
was	O
made	O
mandatory	O
.	O
</s>
<s>
The	O
Malaysian	O
Government	O
declared	O
in	O
the	O
2023	O
Tax	O
Budget	O
that	O
mandatory	O
e-invoicing	B-Application
will	O
be	O
introduced	O
for	O
businesses	O
with	O
an	O
annual	O
turnover	O
exceeding	O
RM100	O
million	O
starting	O
June	O
2024	O
.	O
</s>
<s>
By	O
2027	O
,	O
all	O
businesses	O
will	O
be	O
required	O
to	O
adopt	O
this	O
electronic	B-Application
invoicing	I-Application
method	O
.	O
</s>
