Since 2014, public procurement in the EU has meant that all businesses interacting with public authorities are required to submit their invoices electronically. But this mandate, known as Directive 2014/55/EU, isn’t just for PDF-sharing. Instead, it requires the secure exchange of structured, machine-readable data to eliminate fragmentation.
While Directive 2014/55/EU standardises electronic invoices to legal requirements, it doesn’t verify whether the bank details are legitimate. That’s only available through separate software, such as Trustpair, to close the gap in your compliant e-invoicing workflows.
Directive 2014/55/EU: Key Takeaways:
- Directive 2014/55/EU is the European e-invoicing mandate which enforces structured data sharing across invoices in the public sector
- E-invoices must be compliance with the European Standard EN 16931, in either the universal business language or another structured data file like XML
- In Austria, the national XML standard is ebInterface and no digital signature is required as the user is already considered verified
- The PEPPOL network is a popular way for companies to securely send and access e-invoices and it works through a four-corner method
- Each EU country does vary in its individual standards, with some member states going beyond Directive 2014/55/EU to B2B and even B2C invoicing
What is Directive 2014/55/EU?
Directive 2014/55/EU is the European e-invoicing mandate. It enforces the use of structured electronic invoicing, rather than paper or PDF invoices, in public procurement across the EU.
Its primary purpose is to ensure that businesses can perform a single invoicing process that’s accepted, with legal certainty, by all public authorities across the EU. It removes the need for multiple national formats and constant juggle between electronic documents and paper.
By being able to receive and process these e-invoices in the digital age, the aim is to ensure interoperability by streamlining processes and digital workflows. This should lead to cost efficient processes, and fewer errors within the internal market.
While the European e invoicing standard was introduced in 2014, legislative updates in 2026 by member states make this regulation more relevant than ever.
It’s important to point out that the Directive is not bulletproof against security challenges. It fails to verify whether supplier bank details are legitimate, which leaves companies and government functions exposed to fraudsters and impersonators. However, Trustpair addresses this gap by securing supplier data and preventing payment fraud, even where e-invoicing workflows are automated.
How does e-invoicing work under Directive 2014/55/EU?
Under Directive 2014/55/EU, all public authorities, from central government agencies to public sector bodies, must be capable of receiving and processing electronic invoices. The invoices themselves must be compliant with the European Standard, EN 16931, and public bodies aren’t allowed to reject invoices just because they’re in a structured electronic format, provided it follows this standard.
In order to prevent technical fragmentation, the European Union’s semantic interoperability data model has been used. This defines exactly what information must be in the invoice so that machines can read it without human help. This supports two types of machine-readable languages:
- Universal business language, which is widely used in the Peppol network
- CEFACT, which contains a structured data file such as XML
Directive 2014/55/EU doesn’t mandate the delivery method to send or receive electronic invoices in public bodies. In fact, most countries have their own national portals for a centralised database to upload files. But public administrations and local authorities without their own can rely on the Peppol network, which is a secure ‘four corner’ model to exchange data.
How is Directive 2014/55/EU implemented in Austria?
Austria was one of the earlier adopters of electronic invoicing in Europe, going beyond the minimum requirements of European Commission in their national law.
While the directive made it mandatory for public bodies to accept electronic invoices, Austria made it mandatory for suppliers to actually send them, in many cases:
- at a Federal level (business-to-government), all suppliers have had to submit e-invoices to government agencies since 2014
- at a regional government level, such as local councils, all authorities have had to receive them since 2020
- in the B2B / B2C landscape, e-invoices are still voluntary as of 2026
Public contracting authorities in Austria use both Peppol and a national XML standard: ebInterface. The latter is specifically tailored towards Austrian tax requirements and VAT rules, so it’s widely used for domestic transactions when invoicing in public procurement.
Unlike some other European countries, no digital electronic signature is required if you send electronic invoices via the USP portal or Peppol. That’s because the identity of the sender is considered verified by the network. And the rules apply for foreign suppliers too, meaning that if you win a Federal contract but aren’t based there, you must still send e-invoices.
Both the sender and receiver must store the e-invoices in their original electronic format for 7 years.
What is the PEPPOL network and why does it matter?
The PEPPOL network stands for Pan-European Public Procurement On-Line. It’s not a software or website, but a secure online network that enables different accounts payable systems to interact.
It’s like your mobile phone network – you may use one brand and your friend may use another, but you can still communicate by phone call and text, because of the network.
How does PEPPOL work?
PEPPOL works by a 4-corner model:
- The sender is the first corner – creating an invoice in their own accounting software, such as SAP, Xero or Sage. It should automatically meet the required invoice attributes and technical requirements.
- The second corner is the sender’s certified Peppol access point provider – where the data is sent and translated into the standardised EU format.
- The receiver’s access point is the third corner – the data travels across the network to here.
- The receiver is the fourth corner – where the system automatically imports the data and the invoice is processed electronically without the need for human intervention or data entry.
Why PEPPOL is important
PEPPOL solves one of the biggest headaches in business: data fragmentation. Without it, firms could be dealing with 50 different customers and 50 different ways to send and receive paper invoices. But with PEPPOL, only one connection is required, which can also offer cost savings.
It’s also legally compliant, meeting EU standards on behalf of the businesses that use it. Because of this, PEPPOL is sometimes the only way to get paid if you’re working with organisations in the public sector, so non compliance isn’t a viable business strategy.
Are there differences between EU countries?
Since Directive 2014/55/EU only requires public bodies (the contracting authorities) to be able to receive e-invoices, member states have taken very different paths when it comes to the private sector. For example, Italy was the first to make e-invoicing mandatory across all types of transactions, including B2G, B2B and B2C, via a central platform.
And in 2026, several EU countries are launching mandatory B2B e-invoicing, including:
- Belgium – starting January 1st 2026 and through the PEPPOL network
- Poland – from February 2026 for large firms
- France – with a phased rollout from September 2026 for large and medium enterprises
Following Directive 2014/55/EU for electronic invoicing
Directive 2014/55/EU requires all public authorities in the EU to receive and process electronic invoices that comply with the standards. This eliminates technical and data fragmentation, and reduces processing costs. No matter which method you choose, work with Trustpair to secure your payment process against fraudsters through automated account validation.
