The landscape of how European companies invoice each other is undergoing its biggest transformation and its happening now. E-invoicing is no longer an “administrative” topic, it is becoming a license to operate in Europe. Countries like Germany and France are already rolling out mandatory requirements that will soon affect every business-to-business (B2B) transaction.

Why should you care? The deadlines are real, but the impact goes beyond simply meeting requirements. Factors to consider include cash flow, market entry complications and operational friction. With each country rolling out its own model, this creates a patchwork that may be difficult to navigate. Missing these deadlines could mean penalties, payment delays or being locked out of critical supply chain partnerships.

The Shift Is Already Underway

The foundation for Europe’s current e-invoicing frameworks can be traced back to EU Directive 2014/55/EU, adopted in April 2014. The Directive required all EU public administrations to be able to receive and process electronic invoices that meet a common European standard (EN 16931). This created the legal and technical groundwork for interoperability in public procurement across the EU and paved the way for the broader B2B mandates now emerging across Europe.

For the EU-Big 4 markets:

  • Italy: Already ahead of the curve since 2019, requiring all domestic B2B invoices to be processed through its national clearance system.
  • Germany: From 2025, all businesses must be able to receive e-invoices that conform to the EN 16931 standard. Issuing e-invoices becomes mandatory from 2027 for large companies and for all B2B transactions by 2028, with paper and non-structured formats permitted during the transition period.
  • France: From September 2026, all VAT-registered companies must be able to receive structured e-invoices, and medium-large companies must also issue them via the public portal (PPF) or certified private platforms (PdPs). Full B2B coverage for all companies becomes mandatory on 1 Sep 2027.
  • Spain: From 2027, large companies must be able to receive and issue e-invoices aligned with the EN 16931 standard and provide status notifications to suppliers. From 2028, also smaller companies must be able to receive and issue e-invoices, with mandatory status notifications to suppliers from 2029.

What This Means for Your Supply Chain

The implications are particularly significant for pharmaceutical and biotech companies managing complex, multi-country supply chains:

  1. Supply chain continuity depends on adherence to e-invoicing requirements
    Can your current systems or the systems of your partners generate, send, receive, and process invoices in formats that meet the EN16931 requirements? If one partner is not aligned, you risk disruptions with customers and partners such as contract manufacturers, API suppliers, distributors, logistics partners, or wholesalers. The transition period creates a mismatch that needs careful management.
  2. European launch decisions
    Companies that are planning their European launch now are faced with a key decision. Will they implement the ‘end state’ solution (e.g., EN 16931 standard format) right from the launch or will their customers and suppliers not yet be ready to receive or issue such invoices?
  3. One size doesn’t fit all
    Each country is implementing a different regulatory-driven technical infrastructure. Italy, being the frontrunner, adopted a hard clearance governance model in 2019, while in the other EU-big 4 markets, different models are being established. With staggered deadlines across markets, you will need a transition strategy that accounts for where you operate and where your supply chain partners are located.

What Businesses Should Do Now

Companies that are active in the markets with current or upcoming e-invoicing mandates, acting early is essential. In case of an in-house order to cash solution, companies should review whether their systems can receive and process structured formats, and support interoptability with regulatory models. Alternatively, companies may rely on a specialist partner to take away the complexity of the e-invoicing landscape and ensure adherence to e-invoicing requirements across markets.

In case of an outsourced operation, it is key that your partner ensures you meet the new e-invoicing requirements. Proactivity in this space is advised to ensure the solution that your partner has developed or is developing will be delivered on time and robust.

At AIM, we navigate the complexities of European e-invoicing requirements for life science companies. Our team can help you assess your readiness, navigate country-specific requirements, and support your team and/or partners with meeting these timelines. Don’t wait until non-adherence to e-invoicing mandates disrupts your supply chain. Let’s talk about how to future-proof your invoicing operations across Europe.