E-invoicing: a prerequisite for friction-free global trade

The accelerating adoption of e-invoicing is reshaping the global tax environment and, increasingly, the dynamics of cross-border trade.

For multinational groups in particular, e-invoicing is emerging as a prerequisite for market access. In a recent cross-market survey by Vertex, nearly half of multinational sellers estimated that non-compliance with local e-invoicing rules could interrupt over 50% of their international sales.

The message is clear: e-invoicing is critical infrastructure for participation in global commerce, and businesses need to act.

Over the past decade, e-invoicing mandates have expanded rapidly across tax jurisdictions. Latin American countries set the standard with comprehensive clearance models; now, countries in Europe, the Middle East, and Asia-Pacific are following suit.

In Europe, the transition from post-audit to continuous transaction control regimes – exemplified by Italy’s SDI, Belgium’s and France’s upcoming rollouts, and Poland’s KSeF – reflects a coordinated regulatory shift towards real-time reporting. The EU’s VAT in the Digital Age initiative aims to standardise this approach, proposing structured data exchange across all 27 member states.

Each regime introduces its own rules, resulting in a fragmented compliance landscape requiring continuous adaptation of invoicing, ERPs, and reporting systems.

While compliance remains the immediate driver, the strategic implications of e-invoicing are broader. Businesses that establish scalable, automated e-invoicing capabilities are discovering a competitive advantage in operational resilience and working capital optimisation.

E-invoicing reduces manual processing errors, accelerates payment cycles, and provides near real-time visibility into cash flow. Automated validation and data integration ensure that invoices are compliant before submission, minimising disputes and improving relationships with trading partners.

In an environment where cross-border transactions increasingly depend on digital verification, the inability to transmit validated invoices can effectively lock a company out of a market.

One of the key takeaways from Gartner’s Develop a Global E-invoicing Compliance Strategy report, available through Vertex, is that finance transformation leaders should follow a three-part roadmap to manage this complexity:

1. Businesses should designate a permanent e-invoicing compliance owner or team within finance to monitor global mandates and ensure 'always-on’ awareness of regulatory changes;

2. They should conduct a full inventory of invoicing, accounts payable, and tax systems to identify which countries and business workflows are covered, where data or integration gaps exist, and which systems can scale to meet future mandates; and

3. They should define goals and future-state capabilities with a clear roadmap.

Embedding these steps transforms compliance, enabling organisations to future-proof their tax and finance operations.

The volatility of recent years has highlighted the fragility of global supply chains and the growing importance of digital readiness. E-invoicing supports business continuity by embedding compliance and data verification directly into financial operations.

During periods of disruption such as now, companies with mature e-invoicing frameworks maintain better control over receivables, payables, and tax reporting. They can identify discrepancies in real time and adjust operations before those issues impact sales or shipments.

For multinational enterprises managing multi-jurisdictional supply chains, this capability is invaluable – and the UK agrees, with 87% of UK survey respondents agreeing that e-invoicing mandates are useful, according to Vertex’s research, and the UK announced its B2B e-invoicing plans on November 26 2025. E-invoicing enables transaction-level transparency across borders and provides tax authorities with standardised data that reduces the administrative burden on both sides.

Governments view e-invoicing as a powerful mechanism to improve tax efficiency, close VAT gaps, and enhance fiscal transparency. But for taxpayers, the trend presents both opportunity and complexity.

The challenge lies not only in complying with diverse local requirements but also in integrating those requirements into coherent enterprise-wide processes. Fragmented compliance strategies implemented country by country often lead to duplicated effort, forgone efficiencies of scale, and increased risk of non-alignment between finance and IT systems.

A strategic response involves centralising e-invoicing oversight within global tax or shared service functions, supported by consistent governance and technology infrastructure, as well as resources that may be required. Businesses that engage early with policymakers and industry groups can help shape the frameworks that will govern future trade.

E-invoicing is only the beginning. Many jurisdictions are extending the concept towards real-time digital reporting of all transactional data. The trend is converging with e-reporting and e-accounting initiatives, which together represent a shift towards full digital oversight of tax processes.

For large multinationals, this evolution underscores the need for end-to-end digital tax strategies – covering data capture, validation, reporting, and analytics. In this context, e-invoicing serves as the foundation for a broader transformation: a single source of verified transactional truth across the enterprise.

The long-term benefits are clear. Companies that treat e-invoicing as an integral part of digital compliance transformation will gain efficiency, reduce their exposure to tax risk, and enhance their agility in entering new markets.

In a global economy built on trust, transparency, and data integrity, e-invoicing is the new language of international commerce.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.