Digitization has brought many benefits to businesses, but also new regulations and limitations. One of these is EN 16931, a European standard for electronic invoicing that seeks to improve interoperability, efficiency, and transparency in transactions between public and private entities. Therefore, it affects the issuance of electronic invoices and plays a vital role if you operate in B2G environments and, increasingly, in B2B. We explain what EN 16931 is and what advantages it offers.
What is the EN 16931 standard?
To begin with, EN 16931 is a technical specification developed by the European Committee for Standardization (CEN). Specifically, it defines the semantic data model for electronic invoices.
As for its origin, it was officially adopted by the European Union in 2017 and aims to establish a common format for invoices issued and received between companies and public administrations within the European Economic Area (EEA).
Likewise, among the main characteristics of EN 16931, we would highlight that:
- It is a harmonized standard at the European level.
- Define a semantic data model, not a specific format. Therefore, it can be implemented in different markup languages such as UBL (Universal Business Language) or CII (Cross Industry Invoice).
- It is designed to ensure interoperability between billing systems.
- It is compatible with exchange networks such as Peppol, which greatly facilitates the international exchange of invoices.
Legal framework: European regulations on electronic invoicing
In turn, EN 16931 is supported by Directive 2014/55/EU of the European Parliament. This directive requires public administrations in all Member States to accept electronic invoices that comply with this standard.
In Spain, where it also has its legal framework, the directive is transposed by Law 9/2017 on Public Sector Contracts.
For its part, standard EN 16931 establishes a series of derived legal obligations, among which the following are noteworthy:
- Public administrations public administrations are required to accept invoices in electronic format.
- The suppliers to the public sector must issue invoices that comply with this regulation.
The truth, or the most tangible result, is that this situation has accelerated the need for technological adaptation and digital transformation in the business world. This is especially true for companies that work or wish to work with the public sector and operate in international environments.
Levels of compliance with standard EN 16931
Compliance with EN 16931 can be understood at different levels. To do so, the technological maturity and environmental requirements of each business must be taken into account:
1. Basic compliance
- Use of a structured format such as UBL or CII.
- Inclusion of mandatory semantic elements defined by the standard.
- Generation of invoices compatible with the common European data model.
2. Interim compliance
- Incorporation of optional elements to improve the information contained in each invoice.
- Capacity for automatic validation using syntax verification tools.
- Partial integration with networks such as the aforementioned Peppol.
3. Advanced compliance
- Full automation of the billing cycle:
- Full integration with ERP systems and other platforms.
- Ability to manage large volumes of invoices with traceability.
| Compliance | Structured format | Automatic validation | Peppol integration | ERP automation |
| Basic | Yes | No | No | No |
| Intermediate | Yes | Yes | Partial | Partial |
| Advanced | Yes | Yes | Complete | Complete |
How EN 16931 is applied: processes and conditions
In any case, when complying with EN 16931 and implementing software that conforms to it, a process must be followed and a series of steps taken to ensure effective compliance with the standard. So, the step-by-step process would be:
1. Initial diagnosis
- Evaluate your current billing system.
- Identifies compatibility with official formats.
- Analyze the interoperability capabilities of your software.
2. Selection of the software provider
- Choose a solution that ensures full compliance with European invoicing regulations in general and EN 16931 in particular.
- Evaluate features such as automation, integration with ERPs, legal updates, and, of course, support.
3. Adaptation of internal processes
- Train administrative and financial staff in the use of the solution you choose and ensure they are familiar with and understand the regulations themselves.
- Redefine accounting workflows based on what your system offers you.
4. Testing and validation
- First, generate your electronic invoices in a test environment.
- Then validate them on different certification platforms (such as the EU eInvoicing tool) to check that they are correct and comply with the standard.
5. Final deployment
- With the previous step complete, it is time to activate the system in the real environment.
- Keep track and monitor continuously to ensure regulatory compliance.
Advantages of adopting the EN 16931 standard
As we have been saying from the outset, adopting this regulation is not just a legal issue. It also represents a strategic opportunity to improve efficiency across the entire business.
Precisely, the greatest benefits (operational, technological, legal, and fiscal) of implementing software in accordance with EN 16931 are:
- Fewer errors when issuing and receiving invoices.
- Cost savings on paper, shipping, and document management.
- More agility in payments and a shorter average collection period.
- European and national legal compliance.
- Facilitates audit and fiscal control thanks to semantic standardization.
- Interoperability with European systems.
- Integration with ERP systems and accounting platforms.
- Improves traceability and security of financial information.
Case studies
To better understand what EN 16931 entails and what real impact it has, let's look at two specific examples:
- A company that exports goods to Germany can issue invoices directly in UBL format without having to make local adaptations.
- A supplier working with the Spanish public administration can automate invoice generation in compliance with FACe through Peppol.
Is easyap compatible with the EN 16931 standard?
It is at this point that we must mention easyap. In such a demanding and changing legal environment, having a technology provider that guarantees compliance with European standards is essential.
We offer you an electronic invoicing solution that is 100% compatible with the EN 16931 standard. At the same time, it is designed to cover both your legal requirements and any operational shortcomings you may have. Without going any further:
- Issue and receive invoices in UBL and CIIformats.
- It integrates with other systems, as well as with the Peppol network, which is ideal if you operate internationally and cross-border.
- Automatically validates semantic content in accordance with the standard.
- You completely automate the accounts payable cycle accounts payable and accounts receivable.
- ADigital archives and the law, all your invoices and documents.
And all this without going into details or specific sectors or volumes, as these are "only" general benefits of easyap. Therefore, if your company wants to comply with European invoicing regulations and increase efficiency, we are the solution.
In summary, standard EN 16931 is much more than a legal requirement: it is a catalyst for the digital transformation of financial processes. Its adoption enables companies to improve their competitiveness, adapt to the new digital environment, and create more fluid and secure business relationships across Europe.
That's why having the help of a tool like easyap, which complies with standards and optimizes accounting and financial processes, is vital. Contact us and find out more.
