Nastaliq / Guides
What is e-invoicing, and how does it work?
E-invoicing means sending each invoice to the tax authority electronically, usually as it is issued, instead of only reporting totals in a periodic return. More tax authorities require it every year. Here is how it works and what it means for your invoicing.
How it works
- Your system creates the invoice as usual.
- The invoice data is sent to the tax authority's system, usually in real time.
- The authority checks it, and either accepts it or rejects it with a reason.
- An accepted invoice comes back with a reference from the authority, often a unique number and a QR code, which go on the invoice you send.
Clearance and reporting
Some tax authorities clear each invoice before it is valid, so the customer only ever receives an invoice the authority has accepted. Others accept a report of each invoice shortly after it is issued. Either way, the invoice data has to leave your system in the authority's format.
Why connect it to your ERP
Typing invoices into a government portal by hand does not scale. When the connection is built into the ERP that already creates your invoices, reporting happens automatically, rejections show up where your team works, and your stock and accounts stay in step with what the authority sees.
What to ask before you connect
- Which of your invoice types and tax scenarios the connection covers.
- How rejected invoices are flagged and corrected.
- Whether the connection is tested in the authority's sandbox before it goes live.
- Who keeps it working when the authority changes its system.
FAQ
Common questions
What is the difference between an e-invoice and a PDF invoice?
A PDF is a picture of an invoice for people to read. An e-invoice is structured data in the tax authority's format, sent to its system so it can be checked automatically.
Is e-invoicing mandatory?
In a growing number of countries, yes, usually phased in by business size or sector. Check the current rules and deadlines with your tax authority or adviser.
What happens when an e-invoice is rejected?
The authority returns it with a reason. The invoice has to be corrected and sent again before it counts.
Can e-invoicing be added to an existing ERP?
Usually, if the ERP can send invoice data in the authority's format. Nastaliq builds the connection into the ERP it runs for each client.
Book a walkthrough
Show us how your business runs today.
Write to us with what you sell, how many branches you have, and what you use now. We reply within one working day.
hello@nastaliq.co