What are e-invoices? Who uses e-invoices?
Do you still remember the fax machine or paper invoices sent in an envelope? Today, those memories are history. Soon, the PDF invoice will also move into the same category. Although a PDF is digital, it is essentially just an image of a paper invoice on a screen – someone still has to manually enter it into the system.
For over a decade, we've had something much smarter on our desks (screens). An e-invoice is a completely digital and machine-processable data stream that moves directly from the seller's software to the buyer's system in seconds. No emails, attachments, or manual input. And it's completely free on Bilnex.
E-invoice structured data file (in XML format), which is prepared according to a common European standard. While a PDF is an image that is read by a human, an e-invoice is a code that is read by computers and accounting systems.
Why are e-invoices used?
- Money arrives faster
An e-invoice never gets stuck in someone's email inbox or on the computer of a contact on vacation. Because the invoice goes directly to the buyer's accounting system, its pre-payment process begins immediately. There is no more excuse for “the accountant hasn't had time to enter the PDF into the system yet” – the e-invoice is already there. - Zero mistakes
Human errors and manual input are a thing of the past. With e-invoices, there is no chance of someone accidentally entering the wrong reference number or misprinting the decimal point of an amount. Data moves from the seller's system to the buyer's software in an authentic and unaltered form. - Security
Sending a PDF invoice via email is a favorite target for cybercriminals today. It is common for email exchanges to be intercepted and the bank account number on your PDF to be replaced with the fraudster's. However, an e-invoice travels over an encrypted operator network, where data manipulation is impossible. This is the most secure way to move invoices. - The law says so.
In Estonia and Europe at large, the use of e-invoices is becoming the standard. If your client is a public sector institution or a private company that has expressed a desire to accept e-invoices, you are obliged to provide them with an e-invoice.
| Property | E-invoice (XML) | PDF invoice (E-mail) |
| Format | Machine-readable data file | Digital image of the invoice |
| Data entry | Automatic – from software to software | Handicraft – someone has to type in or copy the data |
| Shipping method | Secure operator network | Regular email (unsecure) |
| Error generation | Excluded – data is in its original form | Normal – typing errors |
| Receipt of money | Faster – the invoice process starts immediately | Slower – invoice processing depends on craftsmanship |
| Security | High (encrypted) | Low (manipulated) |
| Cost | Sending and receiving at Bilnex is free | The time spent dealing with invoices translates into financial costs |
Let's bust the myths! What raises questions about e-invoices?
Many entrepreneurs prefer the traditional PDF format because e-invoices seem technically complex and expensive. However, this is not true.
Myth: Sending and receiving e-invoices is too complicated and requires accounting or IT knowledge.
Reality: In Bilnex, creating an e-invoice is just as easy as generating a regular invoice. The entire technical side, from generating the XML file to sending it between operator networks, happens in the background. The same applies to receiving it – open the e-invoice channel, let your partner know about your request, and e-invoices will start arriving in your Bilnex account.
Myth: E-invoices get lost. Email is more secure.
Reality: The email may get stuck in a spam filter or trash. The e-invoice goes directly to the client's accounting software, where it is immediately visible and ready for further processing.
Myth: E-invoices are expensive, especially for small businesses
Reality: Bilnex is designed for micro and small businesses. Sending and receiving e-invoices is free in our environment. You save time (and accountant's work hours) without paying a cent.
E-Invoice Law in Estonia: What changed in 2025?
In Estonia, the issue of e-invoices is regulated by the Accounting Act. Important note:
- Public sector: E-invoicing has been mandatory for government agencies for years.
- Private sector: Starting in the summer of 2025, every company listed as an e-invoice recipient will have the right to request e-invoices from other private companies. Bilnexi invoicing software automatically checks the readiness of your customer's e-invoice.
FAQ: What is an e-invoice in practice?
What is an e-invoice?
An e-invoice is not a PDF file and cannot be sent by email. It is machine-readable. In XML format a data file that is compiled according to a common standard. While the data of a PDF invoice must be entered into the system manually by an accountant, the data of an e-invoice reaches the accounting system automatically and without errors. This is the most modern, secure and fastest way to invoicing.
How to send e-invoices?
To send an e-invoice, you need to create an account in a billing environment like Bilnex, as it cannot be sent via email. The process is simple: create an account, create an invoice in the environment, and click the button. “Send e-invoice”. The software automatically generates a file in the correct format and transmits it directly to your client's accounting software through a secure operator network.
How do I know who to send an e-invoice to?
You don't have to call your customers one by one or send emails to check whether their e-invoices are ready. Bilnex's invoicing software is interfaced with the Commercial Register and automatically checks your customer status. When you enter the customer's name or registry code in the invoice, the system immediately sees whether this company is registered as a recipient of e-invoices. If the receiving capacity is available, Bilnex automatically offers you the option to send an e-invoice; if not, you can send a regular PDF invoice.
When is sending a PDF invoice still the right choice?
Although e-invoicing is the future, you don't have to worry if your customer isn't ready for it yet. Bilnex is designed so that you can invoice everyone.
Sending a PDF invoice is still appropriate in certain cases.
- Foreign customers: International e-invoice standards (such as Peppol) exist, but many small foreign companies still prefer classic PDF.
- The customer is not the recipient of the e-invoice: If the Commercial Register says that a company does not have an e-invoice channel, PDF is the best and fastest way to transmit information.
The Bilnex system checks the client's readiness and always offers you the best option. If an e-invoice is not possible, the correct PDF invoice you have prepared will be automatically sent to the client's e-mail. This way, you will always be professional, regardless of which technology your partner prefers.
How to receive e-invoices?
To receive e-invoices, a company must be registered as an e-invoice recipient. You can activate it in Bilnex with just a few clicks. Once reception is activated, you no longer have to search for supplier invoices in your emails - they will automatically arrive in your Bilnex account. From there, you can review the invoices with one click and send them to your accounting software, saving both yours and your accountant's valuable time.