E-invoicing for EV charging: mission possible

The EV charging ecosystem is undergoing a significant transformation, driven by advancements in technology and regulatory changes. One of the most impactful shifts is the global adoption of e-invoicing. This digital revolution is not only streamlining financial operations but also ensuring compliance with evolving standards worldwide. For charge point operators (CPOs), understanding and implementing e-invoicing is crucial to remain competitive and efficient in this rapidly growing industry.

The global push for e-invoicing

E-invoicing, the electronic exchange of invoices in a structured data format, is becoming a standard practice across the globe. The European Union has been at the forefront of this movement, with Directive 2014/55/EU mandating the adoption of e-invoicing for public procurement. The EU aims to make e-invoicing the default by January 2028, promoting a harmonized European standard. It’s part of a broader effort to modernize the VAT system under the VAT in the Digital Age (ViDA) regulations.

The rise of Continuous Transaction Controls (CTC) models, such as the Peppol eInvoice specifications, is another significant development. These models enable real-time or near-real-time reporting and validation of invoices, ensuring compliance and operational efficiency. CPOs operating in multiple jurisdictions must stay abreast of these evolving requirements to ensure seamless cross-border transactions.

Why e-invoicing for EV charging matters for CPOs

For CPOs, the shift to e-invoicing is a compliance requirement and, at the same time, an opportunity to enhance operational efficiency and customer satisfaction.

Here are some key benefits of e-invoicing:

• Streamlined operations: e-invoicing automates the invoicing process, reducing the need for manual entry and minimizing errors. It leads to faster invoice processing and payment cycles, improving cash flow and financial management.
• Enhanced transparency: electronic invoices provide detailed, standardized information that is easily accessible and verifiable. It helps track transactions, resolve disputes, and ensure accurate record-keeping.
• Reduced administrative overhead: By eliminating paper-based invoicing, CPOs can significantly reduce administrative costs related to printing, mailing, and storage. This not only saves money but also contributes to sustainability goals.
• Compliance and security: E-invoicing ensures compliance with international tax regulations, reducing the risk of non-compliance penalties. Additionally, electronic invoices offer better security features, protecting sensitive financial information from fraud and unauthorized access.
• Customer experience: A seamless and efficient invoicing process enhances the overall customer experience. Customers appreciate the convenience of receiving and paying invoices electronically, leading to higher satisfaction and loyalty.

The E-invoicing landscape across the globe

The adoption of e-invoicing varies across regions, with some countries leading the way and others gradually catching up. Here are some notable developments:

Europe

Italy and Spain were the first to implement mandatory e-invoicing for both B2B and B2G transactions. B2G e-invoicing has been mandatory in France since 2017, and now the French Tax Authority (DGFIP) has announced its intention to mandate countrywide e-invoicing and e-reporting as of 1 September 2026. Meanwhile, the German Ministry of Finance (BMF) has released a draft letter providing guidance on the upcoming e-invoicing mandate starting January 1, 2025. The mandate will initially require businesses to be able to receive e-invoices, with the issuance requirement being phased in during 2027 and 2028. The Polish Ministry of Finance will launch mandatory KSeF e-Invoicing in two phases: starting February 1, 2026, for large taxpayers and extending to all taxpayers on April 1, 2026.

Americas 

The Comprobantes Fiscal Digital por Internet (CFDI) is an electronic invoice format mandated in Mexico and used in certain Latin American countries. It serves as a digital tax receipt detailing a business transaction, including the goods or services provided, their costs, and calculated taxes. Mexico’s new CFDI version 4.0, which came into effect in January 2023, makes electronic invoicing mandatory for all taxpayers. Similarly, Colombia mandates electronic sales invoices for POS systems exceeding certain thresholds

APAC 

The EU’s first-mover advantage in e-invoicing facilitates trade beyond its borders through planned expansions of international partnerships and support for the EU e-invoicing model in more non-EU countries. This model, based on the European standard and Peppol technical specifications, has been adopted in countries such as New Zealand, Australia, Malaysia, Japan, and Singapore. New developments include the EU-US Trade and Technology Council Joint Declaration and ongoing negotiations for free trade agreements with India and Thailand, as well as digital trade agreements with South Korea and Singapore, which have signed digital partnerships with the EU.

Middle East

Saudi Arabia entered ‘phase 2’ of e-invoicing in January 2023, requiring all taxpayers to share data and report invoices for validation and verification.

E-Invoicing in the EU: Compliance and Reporting

According to the EU directive, all e-invoices must be reported to the national tax agency through a country-specific platform, adhering to technical specifications for submission and validation. Depending on the complexity of the process, third-party integration can enable seamless and on-time reporting of the issued e-invoices to the national tax authorities.

At the Exploring the Future of E-Invoicing webinar organized by the European Commission on April 17, 2024, industry leaders and policymakers gathered to discuss the future of e-invoicing. The event highlighted key findings from the eInvoicing Directive Report and explored future initiatives to enhance the adoption of e-invoicing across the EU.

AMPECO was highlighted at the webinar as a pioneer in the EV ecosystem, raising the importance of e-invoicing and contributing valuable insights. Petar Georgiev, Head of Strategic Alliances, Regulatory Affairs & Sustainability at AMPECO, presented a compelling use case of e-invoicing implementation in the EV charging sector. He stated:

“By incorporating e-invoicing into our comprehensive EV charging management platform, we not only streamline administrative processes but also enhance transparency and compliance for our clients. Our approach here fully embodies the future of the EV ecosystem.”

How AMPECO tackles the e-invoicing challenge for CPOs 

AMPECO’s platform offers integrated e-invoicing capabilities, allowing CPOs to generate, send, and manage electronic invoices directly within the system. This integration ensures a seamless workflow and eliminates the need for third-party invoicing solutions.

Key features of AMPECO’s e-invoicing solution include:

• Seamless invoice delivery: Automated email invoicing after transactions or at specified intervals.
• Detailed service breakdowns: Monthly invoices with comprehensive service details, promoting transparency.
• Customization options: Personalized invoices with company logos and flexible data fields.
• Compliance and flexibility: Adaptable VAT rates and market-specific compliance features.
• User-friendly management: Backend invoice editing and flexible invoice data collection.
• Comprehensive record-keeping: Invoice archiving and export capabilities.
• Support for various charging scenarios: Including ad-hoc charging invoice management.

By offering these features, AMPECO empowers CPOs to navigate the complexities of e-invoicing efficiently, ensuring they remain compliant with evolving regulations while providing a seamless experience for their customers. This approach not only addresses current e-invoicing challenges but also positions CPOs for future growth in the dynamic EV charging market.

The future of e-invoicing 

The growing adoption of e-invoicing mandates across the EU significantly affects various industries, including the EV charging sector. As member states enforce these regulations, EV charging companies must shift from traditional paper-based systems to electronic invoicing. This shift streamlines the creation, transmission, and storage of invoices, enhancing transparency, reducing administrative overhead, and lowering the risk of tax evasion. Such improvements in efficiency and accountability promote smoother transactions between EV charging providers and customers, leading to a more seamless digital experience in the expanding electric mobility market.

Efforts are underway to ensure harmonization across Member States based on the European eInvoicing standard, addressing fragmentation caused by national implementations. Enhanced support for interoperable solutions and transmission methods, with alignment of B2G, B2B, and B2C processes. The EU is expanding international partnerships, promoting the EU eInvoicing model in non-EU countries like Singapore, Japan, and the USA.

AMPECO is committed to supporting CPOs on this journey, providing the tools and solutions needed to navigate the complexities of e-invoicing and thrive in the digital age. By staying ahead of regulatory changes and technological advancements, CPOs can ensure their operations are future-proof and poised for growth in the dynamic EV charging market.