Plain-English definitions for the terms that matter — from e-invoicing standards to VAT rules and everyday payment vocabulary.
E-invoicing is the structured, machine-readable exchange of invoice data between buyer and seller systems, replacing PDF or paper.
Peppol is an international network and set of standards for exchanging business documents (invoices, orders, credit notes) between organisations across country borders.
UBL (Universal Business Language) 2.1 is the OASIS XML standard for business documents, widely used as the base format for e-invoices across Europe and Asia-Pacific.
CII is the UN/CEFACT XML syntax for e-invoices, used as the basis for Germany's XRechnung and France's Factur-X hybrid PDF+XML format.
XRechnung is Germany's national e-invoice standard — a CIUS (Core Invoice Usage Specification) of EN 16931 serialised in CII XML, mandatory for invoicing German public authorities.
Factur-X is a hybrid PDF+XML e-invoice format that embeds a CII XML file inside a PDF/A-3 document, making it both human-readable and machine-processable.
Reverse charge VAT shifts the obligation to account for VAT from the seller to the buyer, commonly applied in cross-border B2B transactions within the EU.
A VAT invoice is a formal invoice that meets a tax authority's legal requirements for recording and reclaiming VAT, including seller and buyer VAT numbers, VAT amounts, and rates.
Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date.
An invoice is a commercial document issued by a seller to a buyer requesting payment for goods or services delivered, itemising amounts owed and the due date.
A quote (or quotation) is a non-binding price proposal before work begins; an invoice is the binding payment request after goods or services are delivered.
A proforma invoice is a preliminary document that looks like an invoice but is not a demand for payment — it declares the expected value of goods or services before delivery.
A credit note is a document issued by a seller to reduce the amount owed on a previously issued invoice, used for returns, corrections, or agreed discounts after the fact.
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