Electronic invoicing, or e-invoicing (e-fakturering), is embedded in how Sweden runs public procurement. It’s also increasingly a part of how businesses expect to transact. In fact, the country is targeting 80% e-invoicing penetration across government and business entities by 2030. E-invoicing is required for businesses that invoice Swedish government agencies, municipalities, or regions (i.e., business-to-government, or B2G, businesses), and it’s quickly becoming the standard for private-sector business-to-business (B2B) operations too.

Below, we’ll discuss how e-invoicing works, how Pan-European Public Procurement On-Line (Peppol) e-invoicing fits into the picture, and what businesses need to know to create, send, receive, and pay electronic invoices correctly.

What's in this article?

• What is an e-invoice?
  
• When is e-invoicing required in Sweden?
  
• How does e-invoicing work in Sweden, step by step?
  
• What are some best practices for sending an e-invoice in Sweden?
  
• How Stripe can help
  

What is an e-invoice?

An e-invoice (e-faktura) is a type of invoice that systems can read and process automatically, and is exchanged in a structured digital format. It’s data formatted to an agreed standard and transmitted directly from one finance system to another.

When is e-invoicing required in Sweden?

Since April 1, 2019, all invoices issued as part of public procurement must be sent as electronic invoices. This requirement applies to government agencies, municipalities, regions, and publicly owned entities, and it applies to contracts above and below the EU procurement thresholds.

All Swedish public sector organisations must be registered on the Peppol network as invoice recipients, and suppliers must send invoices via Peppol or a service connected to it to guarantee successful delivery. Peppol is an international framework that allows businesses and public entities to exchange structured documents such as invoices through a common set of technical standards and rules, and it removes the need for one-off integrations between each buyer and supplier. Sweden has been an active participant in Peppol’s development, and the Swedish Agency for Digital Government (DIGG) oversees national implementation.

Sweden specifically uses Peppol BIS Billing 3.0, which supports compatibility across EU member states. Older Swedish formats—such as Svefaktura 5A or Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT)—might still be accepted in limited cases if both parties agree, but these are being phased out. For new public procurement processes, Peppol BIS 3.0 is the default format.

The mandate does not automatically apply to private-sector B2B or business-to-consumer (B2C) transactions. However, businesses might contractually agree to use e-invoices, and many larger organisations prefer or require structured e-invoices for efficiency in B2B ecommerce.

How does e-invoicing work in Sweden, step by step?

Swedish e-invoicing is a structured data exchange between two finance systems. It’s a defined, multistep, technical, and regulatory workflow.

1. Invoice creation

The supplier creates an EN 16931-compliant invoice in an accounting, enterprise resource planning (ERP), or invoicing system that supports structured e-invoices. The system generates a file, usually an Extensible Markup Language (XML) file, that contains standardised fields for information such as the invoice number, dates, value-added tax (VAT) details, line items, totals, payment terms, and both parties’ identifiers.

2. Recipient identification (ID)

The invoice includes the buyer’s electronic identifier, typically based on their organisation number or a Global Location Number (GLN). In the Peppol network, Swedish organisation numbers are commonly prefixed with “0007” to form a valid Peppol ID.

3. Peppol access point connection

The supplier sends the invoice via a certified Peppol access point. Rather than connect directly to Peppol’s infrastructure, businesses use an approved service provider, which is often built into their invoicing software. Stripe, for instance, offers Billit as a Peppol access point.

4. Peppol network transmission

The access point validates the structure of the invoice and transmits it to the recipient’s access point using their Peppol ID. The Peppol network supports interoperability, which means the sender and receiver don’t need bilateral technical agreements.

5. Automated receipt

The buyer’s access point receives the invoice and forwards it directly into the buyer’s accounting or accounts payable system. Since the invoice is structured data rather than a PDF, the system can automatically populate fields without manual data entry.

6. Validation and matching

The receiving system checks the invoice against internal controls such as purchase orders, contracts, or approval workflows. Format errors or missing mandatory fields can trigger automatic rejection before the invoice reaches a human reviewer. This prevents incorrect data from entering the accounting ledger.

7. Approval workflow

If the invoice passes validation, it moves through internal approval processes. Many organisations automate routing based on cost centre, project code, or supplier category. Structured data allows invoices to move through these workflows without manual redistribution.

8. Payment scheduling

Once approved, the payment is scheduled through standard Swedish banking channels such as Bankgiro or PlusGiro transfers with Optical Character Recognition (OCR) references for automated matching. Some organisations also use Swish or authorised direct debit arrangements for specific payment models.

9. Archiving and record retention

The final step is digital archiving. Under Swedish bookkeeping rules, accounting records, including e-invoices, must be retained for at least seven years after the end of the financial year. Because the invoice is already digital and structured, automated reconciliation and compliance with recordkeeping requirements are built into the workflow.

What are some best practices for sending an e-invoice in Sweden?

Creating and sending an e-invoice becomes easier once you understand the legal framework and the network infrastructure. Here are some best practices for successful e-invoicing in Sweden.

Configure your invoicing system properly

Your accounting or ERP platform must be set up to generate structured invoice files with the correct data mapping. This means internal fields (e.g., customer IDs, value-added tax [VAT] codes, product classifications, cost centres) need to sync with standardised invoice elements so nothing is lost in translation.

Maintain clean master data

Structured invoicing depends on accurate supplier and customer records. Incorrect organisation numbers, outdated electronic identifiers, or mismatched legal names are common causes of invoice rejection.

Map internal approval logic before sending

Many companies configure rules that allow invoices to reflect internal reference requirements (e.g., purchase order numbers, project codes, departmental references) before transmission. Any missing elements can trigger automatic rejections.

Test before going live

Access point providers typically allow test submissions in a controlled environment. Running validation checks before issuing live invoices reduces the risk of failed deliveries during production billing cycles.

Monitor transmission reports

After sending, access points generate technical acknowledgements and status updates. Reviewing these reports ensures invoices were actually delivered and not blocked due to structural or routing errors.

Establish exception handling procedures

Even structured invoices can fail validation. Clear internal ownership—whether finance, information technology (IT), or shared services—prevents rejected invoices from sitting unresolved and delaying invoice payment.

How Stripe can help

For B2G and other businesses in Sweden that rely on e-invoicing, Billit is a certified Peppol access point offered in the Stripe App Marketplace. The third-party app allows users to send secure e-invoices directly from their Stripe Dashboard.

For businesses in Sweden that prefer to send traditional invoices, Stripe Invoicing can help. Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customise and send professional invoices – no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and ERP software, helping you keep systems in sync and reduce manual data entry.