All bout XML Invoices: What they are, types, and advantages

In the digital era, electronic invoicing has become an essential tool for companies looking to optimize their administrative processes and comply with tax regulations. Implementation is being carried out through XML invoices (Extensible Markup Language), allowing for more efficient and secure invoice management.

What is an electronic invoice in XML format?

An electronic invoice in XML format is a structured digital document that uses tags to define and organize the information contained in the invoice. Here we explain in detail what an electronic invoice is. Unlike PDF files or paper invoices, XML allows IT systems to automatically interpret and process data, facilitating integration into different platforms, applications, and systems.

Advantages of Using eInvoices XML

The adoption of electronic invoices in XML format offers multiple benefits for businesses:

Automation and Efficiency: As a machine-readable format, XML enables process automation, such as invoice issuance, reception, and archiving, reducing human errors and accelerating financial operations.
Interoperability: The creation of XML-based standards, widely accepted in countries worldwide, facilitates information exchange between companies in different countries and their systems and applications.
Regulatory Compliance: Many tax regulations worldwide require or promote the use of electronic invoices in XML-based standards, ensuring compliance with current regulations and facilitating audits.
Security and Fraud Reduction: Using XML in electronic invoicing ensures security over receipts and, therefore, transactions, reducing the risk of document loss and preventing tax fraud or identity theft.

Can any XML Invoice be used?

The concept of an XML invoice is broad and diverse. Each entity can generate an XML invoice with different structures, rules, and syntax. This diversity, rather than being beneficial, can become an obstacle, as each system would need to adapt to numerous formats, creating interoperability issues. To address this challenge, electronic invoicing standards have been developed to allow companies worldwide to use unified formats. These standards guarantee compatibility, efficiency, and regulatory compliance, enabling each country or region to adapt formats to their business needs and regulations.

Global XML electronic invoicing standards

As electronic invoicing laws expand globally, various XML-based standards have emerged to ensure uniformity and regulatory compliance. Below are some of the most widely used:

XML UBL (Universal Business Language)

A key standard in electronic invoicing. It is a generic standard that defines a library of XML documents for businesses, including invoices, purchase orders, and others. Many countries have adopted UBL as the basis for their own electronic invoice formats. Find out more about the UBL format.

Peppol XML

This concept is not entirely correct. Peppol is a network through which electronic documents based on UBL can be exchanged. If you want to learn more, here we explain what Peppol is.

One of the adaptations of UBL is BIS (Business Interoperability Specifications), which facilitates the exchange of electronic documents, including invoices, between entities in Europe and other regions. Formats like Peppol BIS 3 and Peppol PINT (the same format but adapted internationally) are examples of specifications used to ensure interoperability in electronic invoicing.

Other Electronic Invoice Formats

Although the formats mentioned above are the most generic and well-known in the world of electronic invoicing, many other formats exist, based on or independent of UBL, developed to comply with specific country regulations and needs. Some examples include: Factur-X (France), XRechnung (Germany), Svefaktura (Sweden), Facturae (Spain), FacturaPA (Italy), etc.

XML Invoice Example

Implementing electronic invoicing in XML format requires adapting company systems to generate, send, and receive documents in this format. Below is a simplified example of an XML invoice, specifically a UBL XML invoice example:

<cbc:CustomizationID>urn:cen.eu:en16931:2017#compliant#urn:fdc:peppol.eu:2017:poacc:billing:3.0</cbc:CustomizationID> <cbc:ProfileID>urn:fdc:peppol.eu:2017:poacc:billing:01:1.0</cbc:ProfileID> <cbc:ID>3</cbc:ID> <cbc:IssueDate>2023-02-15</cbc:IssueDate> <cbc:DueDate>2023-04-16</cbc:DueDate> <cbc:InvoiceTypeCode>380</cbc:InvoiceTypeCode> <cbc:Note>note</cbc:Note> <cbc:DocumentCurrencyCode>EUR</cbc:DocumentCurrencyCode> <cac:AccountingSupplierParty> <cac:Party> <cbc:EndpointID schemeID="9921">BE4519360874</cbc:EndpointID> <cac:PartyName> <cbc:Name>3 - Enterprise Company</cbc:Name> </cac:PartyName> <cac:PostalAddress> <cbc:StreetName>Str</cbc:StreetName> <cbc:CityName>Diest</cbc:CityName> <cbc:PostalZone>08241</cbc:PostalZone> <cbc:CountrySubentity>Diest</cbc:CountrySubentity> <cac:Country> <cbc:IdentificationCode>BE</cbc:IdentificationCode> </cac:Country>

This example illustrates how data is structured in a UBL XML invoice, allowing IT systems to process the information efficiently.

Do You Want to Implement Structured Electronic Invoicing in Your Company?

Electronic invoicing in XML format represents a significant advancement in business management, offering advantages in terms of efficiency, security, and regulatory compliance. Adopting this format not only facilitates internal operations but also ensures that companies align with global trends and regulations in electronic invoicing, which are increasingly affecting more businesses.

With B2Brouter, an electronic invoicing and tax reporting software, you can create, send, receive, and manage eInvoice XML in standardized formats with minimal effort.