"E-invoice" is one of the most misunderstood terms in invoicing. Many people use it to mean any invoice sent digitally, while the term formally means something more specific.

PDF invoice by email

By far the most common way small businesses invoice digitally today is sending a PDF as an email attachment. The customer opens the email, downloads or reads the PDF, and pays based on the information in it. It's simple, works everywhere, and requires no technical integration between sender and recipient.

Structured e-invoice

A structured e-invoice, in the formal sense, is instead machine-readable data, not an image of an invoice but structured information (for example in XML format) that can be read directly into the recipient's accounting system without a person needing to type the details in manually. This reduces the risk of data-entry errors and speeds up processing on the recipient's end, especially at high volumes.

The practical difference

A PDF sent by email is still fundamentally a document made for a human to read. A structured e-invoice is made for a computer system to read. Many people use "e-invoice" for both, but only the structured variant formally counts as an e-invoice under, for example, the EU's and the public sector's definition.

Peppol and the public sector

Within the EU, and especially when invoicing the public sector, the Peppol network is often used to send structured e-invoices between different accounting systems. Government agencies in Sweden and several other EU countries in many cases require suppliers to send structured e-invoices via Peppol specifically, not a PDF by email. Read more in our guide on Peppol and e-invoicing.

Does your business need structured e-invoices?

Most small businesses invoicing other small businesses or private individuals do perfectly well with PDF invoices by email. The requirement for a structured e-invoice via Peppol mainly becomes relevant if you invoice a government agency or a larger organization that specifically requires it.

FAQ

Is a PDF invoice by email an e-invoice?

In everyday language it's often called that, but formally only structured, machine-readable data counts as a true e-invoice.

Do I need to be able to send structured e-invoices?

Only if you invoice a customer that specifically requires it, such as certain government agencies. Most small businesses are fine with PDF by email.

With FakturaKlar you create and send professional PDF invoices by email to your customers, which covers the needs of the vast majority of small businesses and sole traders.

What is an e-invoice?