An electronic invoice, or e-invoice, is a digital document that shows the details of a transaction—what was bought, how much it cost, and when payment is due. Unlike a paper invoice, which requires manual handling, an e-invoice is designed to move quickly between a seller and a buyer, often through email or specialized software.

When you’re handling electronic invoices, the specific format you use determines how the information is structured, how it’s shared, and whether it can be easily processed by different software or platforms. The format can also impact compliance requirements, especially if you’re working with specific industries or government systems. Choosing the right format often depends on who you’re working with and what the rules are for your transactions.

Below, we’ll discuss the most common electronic invoice formats, when to use a specific format, and how regulations affect them.

What’s in this article?

• How is an electronic invoice different from a regular invoice?
  
• What are the most common electronic invoice formats?
  
• When should you use a specific format?
  
• What industries rely on specific e-invoice formats?
  
• How do regulations affect e-invoice formats?
  
• How Stripe Invoicing can help
  

How is an electronic invoice different from a regular invoice?

A regular invoice is usually a paper document or a PDF that a business emails to a customer. It often needs to be filled out by hand, printed, and manually processed. An electronic invoice is digital from start to finish. It’s created in a structured format that systems can automatically understand and process. It can flow straight from the seller’s system to the buyer’s system with minimal human involvement.

What are the most common electronic invoice formats?

Electronic invoices come in several formats, each designed to make it easier for systems to read, process, and exchange billing information. Here are the most common ones.

Extensible Markup Language (XML)

XML is one of the most widely used formats for e-invoices. It’s easy for computers to process and easy for people to read. Many governments and industries favor XML because it is highly customizable and works well for complex transactions.

Universal Business Language (UBL)

UBL is a specific format based on XML and designed for business documents including invoices. It’s used internationally and is especially popular in Europe, where it’s part of e-invoicing standards in many countries.

Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT)

EDIFACT is an older but still widely used format, particularly for large-scale businesses and industries such as shipping and retail. It’s part of the broader Electronic Data Interchange (EDI) system and is designed for the exchange of many different kinds of business data.

PDF with embedded data

While a basic PDF isn’t technically an e-invoice, some PDFs include embedded data in a format that electronic systems can read (e.g., XML). This hybrid approach is often used by businesses that transition from traditional invoices to fully digital ones.

Pan-European Public Procurement Online (PEPPOL) BIS billing

PEPPOL is a secure network that supports e-invoice and data exchange, and PEPPOL BIS billing is the format it uses. PEPPOL was first used in Europe and has expanded to include Australia, New Zealand, the United Arab Emirates, and countries throughout Asia.

Proprietary formats

Some companies and industries use their own specific formats that are customized to their systems. While these can work well within a closed network, they often require conversion tools to interact with other systems.

When should you use a specific format?

When you choose an electronic invoice format, consider your business needs, the systems you’re working with, and any regulations you need to follow. The right format ensures smoother transactions, fewer errors, and better compliance with legal and industry standards. Here’s more information on when to use each type of e-invoice format.

XML

You need flexibility and compatibility across a range of systems. XML is highly adaptable and works well for businesses that handle a variety of transactions or operate internationally.

UBL

You’re working in Europe or with businesses that adhere to international e-invoicing standards. UBL is particularly useful if you’re involved in government contracts or cross-border transactions within the EU, as it’s often a requirement in those contexts.

EDIFACT

You’re in a high-volume, large-scale industry such as retail, logistics, or manufacturing. EDIFACT is ideal if your company already uses an EDI system to exchange data with trading partners. It’s a reliable choice for businesses with established, automated processes.

PDFs with embedded data

You’re transitioning from paper-based or basic digital invoices to full e-invoicing. This format is a good middle ground, because it enables automated data extraction while still being legible to humans. It’s also a helpful choice if your trading partners aren’t ready for fully structured e-invoicing.

PEPPOL BIS billing

You need to work with public sector organizations or send invoices through the PEPPOL network. PEPPOL BIS billing is a standardized, secure way to exchange invoices across borders.

Proprietary formats

You’re operating within a closed network, such as a specific industry or a supply chain with standardized internal systems. This can make internal processes easier but might require converters to communicate with external partners.

What industries rely on specific e-invoice formats?

Different industries rely on specific electronic invoice formats based on their unique needs, transaction volumes, and regulatory environments. For example, high-volume sectors such as retail and logistics tend to favor formats that handle bulk data well, while governments often rely on mandated formats such as UBL and PEPPOL BIS billing for compliance.

Here’s a closer look at the formats commonly used in certain industries.

Retail and consumer goods

Retailers and consumer goods companies often manage high transaction volumes and multiple suppliers. EDIFACT is a long-standing favorite because it can handle large-scale data exchanges. XML is also gaining traction for its adaptability and integration with modern systems.

Manufacturing

Manufacturers frequently rely on EDIFACT to manage complex supply chains and automate procurement processes. Proprietary formats are also common within tightly integrated supplier networks.

Logistics and transportation

Logistics relies on data such as shipment details and customs documents. EDIFACT is a widely used format, and UBL is often used for cross-border transactions, especially in regions such as Europe.

Government and public sector

Governments often mandate specific e-invoice formats for businesses that supply goods or services. UBL is frequently required in Europe, while PEPPOL BIS billing has become the standard framework for public procurement e-invoicing in many countries.

Healthcare

Invoices for medical supplies, equipment, and services often use XML, Health Level 7 (HL7), or proprietary formats customized to healthcare systems. These formats ensure accurate data handling while complying with strict regulations.

Finance and insurance

The finance and insurance sectors prioritize structured formats such as XML and UBL to ensure accuracy, security, and compliance. International Organization for Standardization (ISO) 20022 is also used between financial institutions.

Technology and software

Tech companies often use modern, flexible formats such as XML and JavaScript Object Notation (JSON) for e-invoicing, as these integrate well with systems based on the cloud and application programming interfaces (APIs).

Energy and utilities

Energy providers and utility companies often use EDIFACT to manage billing across large customer bases and supply chains. XML is also used for newer, more adaptable systems.

Wholesale and distribution

Wholesalers rely on EDIFACT to process bulk orders, while smaller distributors might use XML or hybrid PDF formats to accommodate diverse customer needs.

How do regulations affect e-invoice formats?

Governments and industries set specific rules for invoice formatting. Many countries have adopted e-invoicing regulations, and more are expected to take effect within the next few years—and these rules often apply to nonresident businesses, too.

In 2025, the EU adopted a new tax law package focused on modernizing the system. Among other mandates, the law requires that e-invoices in the region be submitted in an EU standard machine-readable format. The UK will require all VAT-registered businesses to e-invoice all business-to-business (B2B) and business-to-government (B2G) transactions starting in 2029.

Other countries began e-invoicing mandates years ago. Vietnam has required businesses to e-invoice since 2022. Many nations in Latin America began leading the charge even earlier, with Mexico adopting the first stages of an e-invoicing mandate in 2011 before expanding the mandate to nearly all transactions in 2014.

If your invoices don’t follow these rules, they might get rejected and you could face penalties. This can also slow down payments from your customers. To ensure compliance, you should do the following:

• Keep up with the rules: Regulations vary by country and industry and often change, so stay informed about changes.

• Invest in flexible software: Good invoicing software can handle different formats and adapt when rules change.

• Get help if you need it: Working with a tax adviser or compliance expert can save you time and frustration.

Here’s how regulations impact e-invoice formats.

They set the rules for what to use

In some regions, governments require businesses to use a particular e-invoice format. For example:

• Across Europe, formats such as UBL and PEPPOL BIS billing are often required for companies that work with public sector clients.

• In Latin America, countries such as Brazil have their own XML-based formats, which are tied directly to their tax systems.

They link invoices to tax systems

Many countries now use e-invoices as part of their tax reporting systems. This means the invoice format has to match what the government’s system can handle. For instance:

• In India, businesses need to create invoices in a JSON format so they can be uploaded directly to the goods and services tax (GST) platform.

• In Italy, businesses need to create invoices in the FatturaPA format so they can be reported to the government’s Exchange System.

They simplify international trade

If you’re doing business across borders, regulations might require you to use formats that work well internationally. Formats such as UBL and PEPPOL BIS billing are designed to make it easier to send invoices between countries.

They set industry-specific rules

Certain industries are more tightly regulated than others so they might have specific formats to follow. For example:

• In healthcare, invoices might need to be in HL7 for additional security.

• In logistics, invoices often follow the EDIFACT standard to handle the extra complexity of customs and shipping.

They make audits and tracking easier

Governments often want invoices to include very specific information so they can track payments, catch errors, or spot fraud. Formats such as XML and UBL work well because they’re detailed and easier to search through.

They incorporate security features

Some regulations require extra security to ensure invoices are authentic. For instance, PEPPOL BIS billing can include a digital signature.

How 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, customize, 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 enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.
  

Learn more about how Stripe can simplify your accounts receivable process, or get started today.