How e-invoicing works?

E-invoicing works by generating invoices in a standardized electronic format, which are then transmitted through government platforms or certified service providers. The invoice undergoes real-time validation to ensure compliance with tax regulations before reaching the recipient. In some cases, tax authorities receive the invoice data simultaneously for reporting purposes. Once approved, the invoice is delivered to the buyer, who can process it automatically within their accounting system. This seamless exchange reduces errors, enhances transparency, and ensures regulatory compliance.