Difference Between E-Invoicing and Fiscalization
One difference between e-invoicing and fiscalization is that fiscal law typically concerns B2C transactions, while e-invoicing is for B2B or B2G transactions.
Last modified on 2026-01-06 in fiscalization
E-invoicing is the electronic generation, transmission, and receipt of invoices between businesses for goods and services exchanged.
Fiscalization is the process of electronically recording, validating, and monitoring financial transactions, particularly sales, to ensure compliance with tax regulations and facilitate government oversight.
Both have their purposes and are used in tandem to combat VAT fraud and digitalize the tedius invoicing and reporting processes.
E-invoicing, also known as electronic invoicing, is a digital document that has several benefits over its physical counterpart while serving the same goal as a conventional paper-based invoice. The electronic invoice was developed with the intention of exchanging and recording a transaction between a company and its clients in a structured data format.
E-invoicing offers many advantages, such as:
Europe has been focused on digitalization and expanding e-Procurement initiatives for a considerable time. The European Commission's VAT in the Digital Age ViDA proposal aims to further enhance European digitalization by introducing VAT-related objectives. This led to the creation of Directive 2014/55/EU, which officially came into effect on April 16, 2019.
This directive mandates that all public administrations in Europe must be capable of receiving and processing B2G invoices in electronic format from their suppliers. Each Member State may adopt and implement this directive within its own legal framework.
The ViDA proposal sets a requirement for B2B e-invoices in cross-border transactions within the EU to be issued within two days after the implementation date of 1 January 2028. This means that invoices must be electronically submitted in accordance with EN 16931 EU e-invoice standard, which specifies that paper and PDF invoices will no longer be accepted after the deadline.
In order to see the different e-invoicing mandates in each European country click here.
Fiscalization involves the electronic recording and validation of financial transactions for taxation purposes. It encompasses the use of specialized systems or devices to track and report sales, ensuring compliance with tax regulations. By implementing fiscalization, governments can effectively monitor and regulate business transactions, enhancing their oversight and control through real-time transaction reporting.
The main difference between fiscalization and e-invoicing is that fiscal law typically deals with B2C transactions, while e-invoices are typically issued for B2G or B2B transactions.
While fiscalization in 2023 typically has a real-time reporting aspect, it is not always included in the fiscalization regime. Similarly, there are different mandatory regulations for fiscal receipts and electronic invoices.
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This form of fiscalization involves the utilization of fiscal devices, spanning from online fiscal printers to online cash registers. Countries like Italy, Poland, and Bulgaria implement this approach.
In this fiscalization model, Point of Sale (POS) software plays a crucial role, transmitting fiscal data directly to tax authorities or undergoing a rigorous certification process. This method is adopted by nations like Albania, France, and Norway.
This category entails a synergy between hardware and software-based fiscalization. It is employed by countries such as Austria, Slovakia, and Germany.
An approach where the fiscalization process occurs directly on the tax authorities' servers, ensuring instant reporting and validation of transactions. Countries like Slovenia, Croatia, and Montenegro rely on this method. There is the option for a country to not have a fiscalization regime in place, but in 2023, it is fairly rare. In order to see more details on the types of fiscalization systems in different European countries, click here.
Want to issue compliance e-invoices and real-time reports with ease? Here are the benefits of choosing DDD Invoices as your e-invoicing and fiscalization solution:
Fiscalization and e-invoicing specifications vary from country to country. Check out our e-invoicing guide, fiscalization compilation, or contact a DDD Invoices representative at no cost to learn more.
An e-invoice, or electronic invoice, is a digital document generated and transmitted electronically between businesses in a machine-readable format. E-invoicing is the exchange of such documents through a specific e-invoicing network or centralized framework.
The best e-invoicing program allows you to send e-invoices with one click and saves you time and money as opposed to traditional invoicing. DDD Invoices offers such a solution for your software and solves your compliance issues, not just in your home country but wherever else you have business.
Written by the Compliance team
Reviewed by Denis V. P.
DDD Invoices is an enterprise-grade platform delivering a powerful infrastructure for creating, sending, receiving and storing electronic documents. DDD Invoices enables software providers like ERPs, SaaS, eCommerce, POS systems, accounting & invoicing softwares, billing services and others, to easily adhere to global invoicing compliance requirements and shorten their time-to-market.