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What is an electronic invoice? 

e - lec - tron - ic in - voice
noun

An electronic invoice, commonly referred to as an "e-invoice," is a type of invoice that is created, transmitted, and processed in an electronic format. These invoices are typically sent using formats like XML or EDI (Electronic Data Interchange) and cannot be altered once they have been transmitted.

The process involves businesses exchanging invoices with their customers in a digital format, which can help reduce manual labor, errors, and additional costs associated with traditional paper invoices. Using electronically generated invoices can lead to more efficient order and invoice management for businesses, even in the case of complex B2B transactions that involve various packages and pricing tiers.

A notable trend in the market is the automation of e-invoices, covering both online and offline transactions, to enhance efficiency and accuracy. This automation is particularly important for businesses engaged in international sales, as it ensures that not only the online shopping process but also the invoices sent to customers are localized for their specific market.

It is crucial to consider invoice compliance, which extends beyond managing sales taxes. Invoices must accurately reflect tax information for both B2C and B2B purchases. Additionally, in some countries like India, Taiwan and Turkey, regulations mandate that the government receives a copy of every invoice issued. Compliance with such regulations is essential for businesses operating in these regions.