EU invoicing, VAT & e-invoicing terms, explained

Continuous Transaction Controls (CTC)

CTC is a model where tax authorities receive invoice data in real time or near-real time, often through a clearance step.

E-invoicing

E-invoicing is the exchange of invoices in a structured, machine-readable format that the recipient's software can process automatically.

EN 16931

EN 16931 is the European standard that defines the semantic data model for a compliant electronic invoice.

PEPPOL

PEPPOL is a pan-European network for exchanging structured electronic invoices and documents directly between businesses and governments.

PEPPOL BIS Billing 3.0

PEPPOL BIS Billing 3.0 is the specific invoice profile used on the PEPPOL network, built on EN 16931.

Structured invoice

A structured invoice carries its data in machine-readable fields rather than as free text or an image.

UBL

UBL (Universal Business Language) is the XML format used to represent electronic invoices and other trade documents.

VAT in the Digital Age (ViDA)

ViDA is the EU reform package modernising VAT rules, including mandatory e-invoicing and digital reporting.

ZUGFeRD / Factur-X

ZUGFeRD (Germany) and Factur-X (France) are hybrid invoices: a human-readable PDF with structured XML embedded inside.

Credit note

A credit note reverses or reduces a previously issued invoice — used for refunds, corrections or returns.

Invoice

An invoice is a legal document requesting payment for goods or services, with the data required by tax law.

Pro-forma invoice

A pro-forma invoice is a preliminary bill sent before a sale is final; it is not a valid VAT invoice.

Quote (estimate)

A quote is a formal offer of price and scope a customer can accept before work begins.

EPC QR code (SEPA QR)

An EPC QR code lets a customer scan and pre-fill a SEPA bank transfer with the IBAN, amount and reference.

SEPA

SEPA is the single euro payments area enabling standardised euro bank transfers and direct debits across Europe.

Structured reference (OGM/VCS)

A structured payment reference (Belgian OGM/VCS) uniquely links a payment to an invoice for automatic reconciliation.

Intervat

Intervat is the Belgian online platform for filing VAT returns and the intra-community sales listing.

Intra-community supply

A VAT-exempt sale of goods or services to a VAT-registered business in another EU country.

One-Stop Shop (OSS)

OSS lets you declare VAT on cross-border B2C sales across the EU through a single quarterly return in your own country.

Reverse charge

Reverse charge shifts the obligation to account for VAT from the supplier to the customer, common in cross-border B2B.

Small business VAT scheme (KOR / franchise)

A VAT exemption scheme for small businesses below a national turnover threshold, letting them invoice without charging VAT.

VAT (BTW / TVA)

VAT is a consumption tax added to most goods and services; businesses collect it on sales and reclaim it on purchases.

VAT return

A VAT return is the periodic declaration in which a business reports the VAT it collected and paid.

VIES

VIES is the EU system for checking whether a VAT number is valid and active for cross-border trade.