Electronic invoicing is no longer optional for European businesses — it’s an accelerating mandate. The EU’s ViDA (VAT in the Digital Age)directive will require structured e-invoicing for all intra-EU B2B transactions by 2030. Countries like France, Germany, and Italy are already ahead of schedule with national mandates. Luxembourg isn’t far behind: B2G (business-to-government) procurement already uses the Peppol network, and B2B will follow.
Microsoft has responded by building a comprehensive E-Documents framework directly into Dynamics 365 Business Central. The 2025 Wave 1 release represents the biggest leap yet — turning BC from a system that can send e-invoices into a platform that orchestrates the entire electronic document lifecycle. For Luxembourg companies already using Fisqal Localization for eCDF, FAIA, and VAT, this native e-invoicing layer completes the compliance picture.
E-Invoicing vs. Emailing a PDF
True e-invoicing is not sending a PDF by email. It’s the exchange of invoice data in a structured, machine-readable format(typically XML) between the seller’s and buyer’s financial systems — without manual intervention. The invoice is created in your ERP, transmitted through a certified network (like Peppol), and automatically ingested into your customer’s system. No re-keying, no scanning, no OCR.
PDF by email
Human-readable only. Requires manual data entry or OCR on the receiving end. No validation, no audit trail, no automation.
Structured e-invoice
Machine-readable XML (Peppol BIS 3.0, XRechnung, FatturaPA). Auto-ingested by the buyer’s system. Validated, tracked, and fully auditable.
What Is Peppol?
Peppol (Pan-European Public Procurement Online) is the dominant e-invoicing network in Europe. It connects businesses through certified Access Point providers— think of it as a postal network for structured documents. Your Business Central sends an invoice to your Access Point, which routes it to the recipient’s Access Point, which delivers it to their ERP. The format used is Peppol BIS 3.0 (Business Interoperability Specifications), an open standard based on UBL 2.1.
Luxembourg context:The Luxembourg government uses Peppol for B2G procurement. If you invoice government entities or state-funded organizations, you’re likely already on the network. The upcoming ViDA directive will extend this to all B2B transactions across the EU — making Peppol readiness a strategic priority, not just a procurement requirement.
The E-Documents Journey in Business Central
Microsoft didn’t add e-invoicing overnight. The E-Documents framework has been evolving rapidly since its introduction in 2023:
Native support for structured electronic documents with Peppol BIS 3.0.
Certified Access Point providers (Avalora, Continia, Pagero, etc.) ship BC connectors.
Power Automate integration, simultaneous email+service, payment tracking, retroactive creation, document recovery.
Enhanced AI Builder integration, expanded country-specific formats, deeper AP automation.
Structured e-invoicing becomes mandatory for all intra-EU B2B transactions.
5 Game-Changing Features in 2025 Wave 1
The 2025 Wave 1 release transforms Business Central’s e-invoicing from “it can send Peppol invoices” to “it orchestrates the entire document lifecycle.” Here are the five headline features:
Power Automate & API integration
Connect e-documents to any workflow. Incoming invoices auto-create purchase documents via API; outgoing invoices trigger multi-step approval flows in Teams.
↳ Up to 90% reduction in manual data entry for accounts payable.
Simultaneous service + email
Send the structured Peppol XML to the e-invoicing network and a PDF copy to the customer's inbox — in one click, from one posting action.
↳ Compliance and customer communication handled in a single step.
Integrated payment tracking
Every e-document shows real-time payment status: paid, partially paid, or unpaid. Payment data flows back from the Access Point provider automatically.
↳ Finance teams see collection status without cross-referencing bank statements.
On-demand e-document creation
Missed generating an e-document when posting? Create it retroactively from any posted sales invoice — no cancel-and-repost needed.
↳ Compliance gaps are closed in seconds, not hours.
Purchase document recovery
Accidentally deleted an unposted purchase invoice? The e-document log retains all data. One click recreates the document with all original line items.
↳ Human errors no longer disrupt the procure-to-pay cycle.
Certified Access Point Providers
Business Central’s E-Documents framework is provider-agnostic. You choose a certified connector, configure it once, and assign e-document formats per customer or customer group. Current certified providers include:
Avalora
B2BRouter
Continia
Logiq
Pagero
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Our recommendation: For Luxembourg-based companies, we typically work with Continia— they’re already a partner in our ecosystem with deep BC integration for document capture and expense management. Your choice of provider depends on geographic coverage, supported formats, and pricing. We help you evaluate and connect.
The Complete Luxembourg Compliance Stack
E-invoicing (Peppol) and tax reporting (eCDF) are complementary. Here’s how the pieces fit together for a Luxembourg company on Business Central:
| Requirement | What handles it | Standard |
|---|---|---|
| B2B / B2G invoicing | BC E-Documents framework + Access Point provider | Peppol BIS 3.0 / UBL 2.1 |
| Annual accounts | Fisqal Localization | eCDF XML — CTIE-approved |
| VAT returns | Fisqal Localization | eCDF XML — CTIE-approved |
| Audit file | Fisqal Localization | FAIA 2.0 |
| Intrastat | Fisqal Localization | STATEC / IDEP.web |
| Multi-country VAT | Fisqal Multinational VAT | OSS, IOSS, reverse charge |
| Bank integration | Fisqal Open Banking | MultiLine, Payconiq, Ponto |
Why this matters for Luxembourg
Business Central now covers the trading side of compliance (Peppol e-invoicing) natively. Fisqal covers the reporting side (eCDF, FAIA, VAT returns, Intrastat) with CTIE approval. Together, they give Luxembourg companies a single ERP that handles both — no middleware, no external portals, no manual file transfers.
For fiduciaries managing multiple clients, the combination is especially powerful: standardized compliance across all client entities, with both Peppol transmission and government reporting running from the same Business Central environment.
The ViDA Directive: What’s Coming
The EU’s VAT in the Digital Age (ViDA) directive is the regulatory driver behind the e-invoicing push. Key milestones:
Several EU countries are already ahead of this timeline. France mandates B2B e-invoicing from September 2026. Germany requires XRechnung for B2G and is preparing B2B mandates. Italy has had mandatory e-invoicing (FatturaPA) since 2019. Luxembourg has no domestic B2B mandate yet, but the trajectory is clear — and companies that adopt Peppol now will have a competitive advantage when it arrives.
Getting Started with E-Invoicing on Business Central
Enabling e-invoicing in Business Central is straightforward:
- Choose an Access Point provider — We recommend Continia for Luxembourg, but evaluate based on your geographic and format needs.
- Install the connector — Each provider ships an AppSource app that integrates with BC’s E-Documents framework.
- Configure Document Sending Profiles — Define how each customer receives invoices: Peppol only, email only, or both simultaneously.
- Set up e-document formats — Peppol BIS 3.0 for most EU partners, XRechnung for German public sector, or other formats as needed.
- Test with a pilot customer — Send a few test invoices through the network before rolling out to all customers.
If you’re already using Fisqal for Luxembourg compliance, adding Peppol e-invoicing is an incremental step — not a new project. The same Business Central environment handles both your government reporting and your trading documents.