Ensuring operational efficiency and legal compliance are the two maxims of CFOs. In this context, electronic invoicing plays a key role, as in addition to replacing paper documents, it is profoundly transforming the financial management of companies. That is why we want to give you a detailed overview of how electronic invoices work, as well as their legal framework in Spain and how solutions such as easyap facilitate their implementation.
First of all, what is an electronic invoice?
An electronic invoice is a digital document that meets the same legal requirements as a paper invoice, but is issued and received in electronic format. Its validity is backed by laws that ensure its authenticity and integrity.
Likewise, these types of documents have their own characteristics, such as:
- Electronic format. They are generated and transmitted digitally.
- Authenticity. They guarantee the identity of the sender with the electronic signature.
- Integrity. They ensure that the content has not been altered since the invoice was issued.
- Readability. The document must be understandable to both humans and computer systems.
In fact, these four characteristics are the pillars on which the specific laws we referred to are based.
How does electronic invoicing work, step by step?
However, we will now move on to the most relevant part of this article: how electronic invoices work. Specifically, the process consists of five steps, which we will explain with an example.
1. Invoice generation
First, the issuer creates the invoice using invoicing software that complies with legal standards. This document includes all the mandatory billing information: identification of the issuer and recipient, description of goods or services, amount, applicable taxes, etc.
- Example: TechSolutions Inc. sells software to Innovatech Ltd. for €5,000. It uses its invoicing program to generate the electronic invoice in XML format with the tax ID number, description, amount, VAT, etc.
2. Electronic signature
Once the document is complete, and to guarantee its authenticity and integrity, the invoice is digitally signed. How? With a recognized certificate. This ensures that the invoice has not been modified and that it comes from the legitimate issuer.
- Example: TechSoluciones S.A. signs electronically with its recognized digital certificate to ensure the authenticity and integrity of the document.
3. Transmission to the receiver
The invoice is then is sent to the recipient via secure electronic means. Currently, email is still valid, but there are electronic data interchange platforms (EDI) or portals that provide a much more convenient and unified service.
- Example: The signed invoice is sent to Innovatech S.L. via EDI in a secure and efficient manner.
4. Receipt and validation
From there, the recipient verifies the electronic signature and validates that the invoice complies with legal and contractual requirements. Once validated, it is stored in the accounting and management systems.
- Example: Innovatech S.L. receives the invoice and its system automatically validates it, verifying the electronic signature and checking that it meets the requirements.
- Storage and preservation
Finally, there is one last step or aspect to consider. Both parties must keep electronic invoices for the legal period. both parties must keep electronic invoices for the legal period established by each country or territory. Not only that, but they must also ensure their accessibility and legibility for possible inspections, queries, or audits.
- Example: both companies store the invoice in their respective document management systems document management systems, retaining them for the legal period (between 4 and 6 years in Spain, from the tax return for each fiscal year).
In turn, this process or operation is applicable to any type of invoice. In this regard, we should point out that there are two types of electronic invoices:
| Invoice type | Description |
| Structured format | It contains data in formats such as XML, which allows for automatic processing by systems. |
| Unstructured format | Usually in PDF or image format, but they require manual intervention for processing. |
Legal regulations in Spain on how these invoices work
On the other hand, electronic invoicing in Spain is regulated by several regulations. Specific laws that establish its use and requirements:
- Royal Decree 1619/2012. Regulates invoicing obligations, including those relating to electronic invoices.
- Law 18/2022 (Create and Grow Act). Establishes the mandatory use of online invoicing in all B2B commercial relationships. That is, between companies.
- Law 11/2021 (Anti-Fraud Law). Promotes the use of invoicing systems compatible with the Verifactu platform. Verifactuplatform. It also prohibits so-called dual-use software.
Implementation deadlines
At the same time, these laws that have been passed in recent years have established (or will establish) mandatory electronic invoicing in our country. But when will this come into effect?
- Companies with a turnover exceeding €8 million. Presumably, they will begin to invoice electronically in 2026. The law sets a period of one year from the publication of the electronic invoicing regulation. Therefore, the exact date will depend on when these regulations are approved. If, for example, they are published in 2025, they will take effect in 2026.
- Other companies and self-employed workers. For the same reason, everything points to the obligation coming into effect in 2026, although, again, everything will depend on the development of the regulation.
Why is electronic invoicing mandatory in Spain?
The fact is that the mandatory implementation of electronic invoicing has three clear objectives:
- Reducing late payments. Online billing facilitates the monitoring and control of payments, both for companies themselves and for the public administration.
- Combating tax fraud. Precisely by increasing the transparency of transactions through this visibility and monitoring, tax fraud is combated.
- Promoting digitization. The use of electronic invoices is driving the modernization of the entire business fabric.
And internationally, how has electronic invoicing been adopted?
In any case, Spain is not the first country to introduce these measures. In fact, several countries have already implemented mandatory electronic invoicing. Here are some examples:
- Italy, which with FatturaPA has reduced tax fraud by 17% since its implementation.
- France, which has already made it mandatory in all B2B transactions.
- Germany, which is already fully implementing it this year.
Even in Latin America , countries such as Mexico, Chile, and Colombia are adopting similar systems for electronic invoicing.
How easyap facilitates electronic invoicing
This is where we come in: easyap. Our tailor-made solutions help you control your electronic invoicing from start to finish. What's more, we adapt to the needs of each company to offer:
- Comprehensive legal compliance. Constant updates to align ourselves with each client's local and international regulations.
- Scalability and customization. Our solutions adapt to the size and sector of each company.
- Technical support. We provide ongoing support to answer questions and optimize the use of the software.
- Integration with existing systems. We integrate with leading ERP, CRM, and other business tools.
- Automatic accounting. We automate the accounting entry of all your invoices, reducing and eliminating errors and thereby improving operational efficiency.
- Multi-device and flexible deployment. You can access the software from different devices, as we work in the cloud.
For all these reasons, the transition to electronic invoicing is a necessary step for companies that want efficiency, compliance, and sustainability. So understanding how electronic invoices work and having solutions such as those offered by easyap will make a difference in the financial and operational management of any organization. If you want to know more, just contact us.
