An e-invoice (electronic invoice) is an invoice sent in a structured digital format — usually XML — that moves directly from the sender’s system to the receiver’s system.
Unlike a PDF invoice sent via email, a true e-invoice is machine-readable. This means the data (such as the total, due date, and reference number) is organized in a way that accounting or ERP software can process it automatically without manual data entry.
Business e-invoice vs. Consumer e-invoice: What’s the difference?
In many regions (e.g. Finland), a distinction is made between professional business invoicing and invoices sent to private individuals. It is common to confuse these two:
| Feature | B2B E-invoice (Network Invoice) | B2C E-invoice (Bank E-invoice) |
|---|---|---|
| Available in Holvi | ✅ Yes | ❌ No |
| Intended for | Businesses and public administrations. | Private individuals (consumers). |
| Destination | Accounting or ERP software. | The recipient's personal online bank. |
| Identification | Identified via an E-invoice address (e.g., OVT/EDI) and an Intermediary ID. | Usually identified by a bank account number or personal ID. |
| Main Benefit | Fully automates accounts payable for companies. | Makes paying bills easy for consumers with no typing errors. |
How does it work?
Because e-invoices follow strict technical standards (such as Peppol, Finvoice, or ZUGFeRD), they require a technical intermediary to travel between parties.
- Sending: The seller creates the invoice in their software and hits "send" as an e-invoice.
- Transmission: An e-invoice operator or a bank acts as a "digital courier," ensuring the file reaches the correct destination securely.
- Receiving: The buyer's system receives the file. While the file is code-based, most software automatically generates a "human-readable" visual version (looking like a standard invoice) for approval.
Why use e-invoicing?
E-invoicing is the modern standard for business for several reasons:
- Automation: No manual typing required, which eliminates human error.
- Speed: Invoices are delivered and received in seconds.
- Cost-efficiency: You save on postage, printing, and administrative labor.
- Sustainability: Digital processing significantly reduces your carbon footprint.
International adoption
Depending on where you operate, e-invoicing may be a choice or a legal requirement:
- In Finland and the Nordics: E-invoicing is the default. In Finland, B2B companies with an annual turnover exceeding €10 000 have a legal right to request invoices from other businesses in e-invoice format.
- In the EU and beyond: E-invoicing is becoming mandatory for Business-to-Government (B2G) transactions and is increasingly required for B2B transactions (e.g., in France, Italy, and Germany) to prevent tax fraud and improve efficiency.