E-invoicing for Independent Hoteliers in Europe: What You Need to Know

Things are changing. Across Europe, electronic invoicing – also known as e-invoicing – is becoming the new norm, and for good reason. It’s faster, safer, more efficient, and soon it will be mandatory. Here’s what hoteliers need to know about e-invoicing, why it matters, and how to get ready for the upcoming mandates.

Independent hoteliers know the balancing act well: welcoming guests, managing reservations, keeping an eye on revenue, and handling all the back-office administration that keeps the business running. For many, invoicing has notoriously been one of the most tedious and complicated tasks. But things are changing. Across Europe, electronic invoicing – also known as e-invoicing – is becoming the new norm, and for good reason. It’s faster, safer, more efficient, and soon it will be mandatory.

Here’s what hoteliers need to know about e-invoicing, why it matters, and how to get ready for the upcoming mandates.

What is e-invoicing?

E-invoicing is the process of exchanging invoices in a structured digital format that can be automatically read and processed by accounting or property management systems. Unlike a PDF or a scanned document – which still requires someone to enter and process data manually – e-invoices are generated as XML files following a universal standard called the UBL format (Universal Business Language).

These are the key characteristics of e-invoices:

• Structured: They follow a specific format (UBL format – Universal Business Language).

• Machine-readable: They can be automatically read and processed by accounting software, PMSs, and other systems with invoicing features.

• Securely transmitted: They are sent through verified networks like Peppol.

Why should every European business care about e-invoicing?

The European Union’s push toward e-invoicing is part of the ViDA (VAT in the Digital Age) proposal. The aim is to modernize tax systems and to clamp down on VAT fraud, which costs EU governments billions of euros each year. At the same time, e-invoicing actively reduces the administrative burden for businesses of all sizes.

For independent hoteliers, this means fewer forms to fill in, less time spent on administration, and a process that takes care of itself once the right software is in place. What sounds like a bureaucratic headache at first glance is actually an opportunity to make your financial operations smoother and more accurate.

The EU has set a general deadline of 1 July 2030 for mandatory e-invoicing in all B2B transactions. But many countries are moving ahead much faster. It’s worth noting that e-invoicing is already compulsory when dealing with government bodies (B2G) in most EU countries. So, if your hotel hosts conferences, training events, or bookings from government branches, you may already be affected. The safest approach is to check with your local authority for the latest updates, as exact implementation schedules differ across Europe.

*You can also visit the official website of the EU for the most up-to-date and accurate information concerning timelines of implementation and mandates.

What this means for you: Even if your country’s deadline is years away, it’s wise to start preparing now. Implementing early means a smoother transition and less disruption. Instead of sending invoices that need to be typed out manually by you or your team, your invoices will be composed in one click and sent directly to the receiver’s system. No delays, no mistakes from either side.

What are the advantages of e-invoicing for hoteliers?

Switching to e-invoicing isn’t just about complying with EU regulations. It brings a long list of advantages that can transform the way independent hoteliers manage their finances.

• Accuracy and error reduction
  With traditional invoicing, every step involves manual input: typing up invoices, sending them by email, and re-entering data into accounting systems. Each of these steps creates opportunities for human error. With e-invoicing, invoices are generated in a structured digital format that eliminates the need for retyping. This reduces the risk of mistakes such as incorrect amounts, missing VAT details, or misapplied payment references. For hoteliers juggling multiple bookings and corporate clients, this kind of precision saves both time and credibility.

• Time savings on administrative work
  Administrative tasks can eat into the day of a small hotel team. E-invoicing reduces the workload by automating the most time-consuming steps. Once the system is set up, invoices are generated, transmitted, and integrated into your accounting software without manual effort. This not only means less time spent on paperwork but also a much cleaner and more accurate bookkeeping process. In the end this only gives you more time to focus on guest services or revenue optimization, with the peace of mind that your books are always up to date.

• More efficient administration
  E-invoicing also streamlines the flow of your administration. Instead of printing, filing, or chasing down paper invoices, everything is handled digitally and can be accessed in real time. This creates a smoother flow of information between your front office, accountant, and potential external partners. For small hotels with not a lot of staff, it means less confusion and faster handling of payments and records.

• International compatibility
  Hospitality is a global industry, and many independent hotels deal with suppliers, travel agencies, or corporate clients from abroad. E-invoicing uses international standards such as UBL and the Peppol network, which are recognized across borders. This standardization removes friction in international business, ensuring that your invoices are immediately understood and accepted by partners, whether they are in Germany, France, or even outside Europe.

• Sustainability
  Moving away from paper invoices, printing, and postage isn’t just cost-effective. It’s also more sustainable. E-invoicing supports greener business practices by reducing paper waste, lowering carbon emissions from mailing, and cutting down on unnecessary resource use. For eco-conscious hotels, this is also a clear advantage, as sustainability increasingly influences guest decisions.

• Faster payments
  One of the biggest frustrations in hospitality is waiting for payments, particularly from corporate clients. E-invoicing speeds up this process because invoices are received, processed, and approved automatically in the client’s accounting system. No invoice gets lost in someone’s inbox or delayed because it needed to be retyped. Faster approval means faster payments, improving your cash flow and reducing the time you spend following up on overdue invoices.

• Better oversight of revenue
  Because e-invoices are structured data, they can be directly integrated into financial software systems. This gives hoteliers a clear, real-time view of revenue, expenses, and outstanding payments. That overview helps with budget planning and fiscal policy, ensuring you can make strategic decisions based on accurate numbers.

• Easy to implement
  Despite the technical language, e-invoicing is not difficult to adopt. Many property management and accounting systems already offer integrations with Peppol, so it may only require activating an existing feature. Even for hoteliers without advanced systems, registering with a certified Peppol provider is straightforward and ensures compliance well ahead of the EU deadline.

• Security and trust
  Because only registered companies can exchange invoices via the Peppol network, hoteliers benefit from a built-in layer of security. This reduces the risk of invoice fraud, which is a growing problem in the hospitality industry where false invoices or phishing attempts are common. Knowing that every invoice comes from a verified source adds peace of mind for both you and your clients.

• Flexibility in tools
  Hoteliers can choose the invoicing solution that best fits their business. Whether it’s part of your PMS, a standalone invoicing platform, or an accounting system, the key is to select a tool that integrates well with your existing setup. Once chosen, the system can handle both sending and receiving invoices, ensuring you’re not only compliant but also efficient in dealing with suppliers and clients alike.

• Full system integration
  The real power of e-invoicing comes when it’s connected to your other tools. Linking your invoicing to reservation managers, payment managers, and accounting tools creates a fully automated financial workflow. From booking to check-out, invoice to payment, every step happens digitally, giving you complete control and visibility without unnecessary manual intervention.

Picture this: a company books a week-long stay for a training seminar at your hotel. The moment the reservation is confirmed, your system generates an e-invoice in UBL format and sends it via Peppol directly to the client’s finance system. When the client pays, the system reconciles it automatically, and your accounting software updates your books in real time. There’s no emailing back and forth, no scanning, no chasing down payments, no piecing scattered data together. Everything just flows.

How to implement e-invoicing at your property?

Getting started with e-invoicing sounds really technical, but most integrations are seamless and easy to implement.

Let’s break it down in 5 key steps:

Step 1: Check your current software systems

Your current tech stack might already have a solution integrated or ready to be activated, so you don’t even need to look for another tool to add. If not, you can see which tool seamlessly connects with your current system. It’s important to choose a certified provider, so you don’t run into unpleasant surprises at the end of your booking year. 

Step 2: Test the process

Start small and send a test invoice to your accountant or a trusted supplier to confirm it processes correctly. During this phase, you can identify and solve any issues you might encounter, so when you start rolling out the process completely, everything runs as smoothly as possible.

Step 3: Train your staff

E-invoicing is not only the responsibility of the manager, but also every person involved in the hotel – front desk staff and F&B workers will also need to work with this system. Make sure they know the basics and prepare a simple guide for occurrences like cancellations or disputed invoices.

Step 4: Streamline the whole workflow

The real benefits of e-invoicing comes when your invoicing software is connected to your daily operations. Linking it with your PMS, payment processor and accounting software, makes sure that everything flows automatically – from reservation, charges and payments to sending the final invoice.

Step 5: Stay up-to-date

Your government might decide to adjust rules or deadlines. So it’s crucial that you know what changes and when. Subscribe to updates from your national government or hospitality association to avoid any friction along the road. Being proactive saves you time and stress when the new regulations roll out.

Common pitfalls to avoid

While e-invoicing has many advantages, some mistakes come at a great cost and slow down adoption of these regulations. Be aware of these common pitfalls so you can prepare smarter and avoid disrupting your daily operations.

1. Waiting too long: Don’t underestimate how long it might take to change systems and be fully comfortable operating the tool. Leaving preparation until the last moment risks rushing your staff, making errors and having to pay higher integration costs.

2. Ignoring country-specific rules: The EU is pushing for a streamlined roll-out of e-invoicing, but some countries have their own variations of those regulations. This might mean a different preferred platform or format, so if you operate internationally dual compliance might be necessary.

3. Overlooking small transactions: E-invoicing doesn’t only count for big invoices and contracts, small services like spa treatments, restaurant bills or meeting room rental does need to be invoiced separately and fall under the mandate.

4. Forgetting data retention: Most EU countries require invoices (paper and electronic) to be stored securely for a set amount of time. Ensure your provider offers compliant archiving options. 

5. Assuming Peppol covers everything: Although it’s the EU’s preferred network, some countries and states operate on different, supplemental systems to register or report certain transactions. Always check your local requirements and those of your international partners.

Getting started: Easily implement e-invoicing with Lighthouse

Making the switch is often simpler than hoteliers expect. Many property management and accounting systems already support e-invoicing, or can be connected to Peppol. The first step is to check whether your current hotel software provider offers a Peppol integration. If not, you can register with Peppol via a certified provider.

Once registered, you can begin sending and receiving e-invoices. From there, it makes sense to connect your invoicing to other systems. For instance, invoices in the Lighthouse platform can be generated from your Reservation Manager, and even matched to payments through Payment Manager. Adding an integrated accounting platform makes sure everything gets sent to the right spot without extra effort, leaving you with clean, up-to-date financial records without the manual work.

Even if your country’s deadline feels far off, now is the right time to prepare. Early adopters will not only avoid last-minute disruption but will also enjoy smoother operations, faster payments, and less admin in the meantime. Getting to know the software, testing your systems, and registering with Peppol today can save you stress tomorrow.

E-invoicing is not just about staying compliant with EU law, it’s about embracing a smarter, more sustainable and more efficient way of working. For independent hoteliers who are already juggling a thousand tasks, automating the invoicing process could free up valuable time to focus on what matters most: making sure your guests have the best experience possible.

Femke Nollet

Femke Nollet is a content specialist, passionate about helping independent hoteliers thrive. With a passion for visual storytelling and industry insights, Femke translates complex trends into practical strategies so hoteliers have the tools to navigate the evolving digital landscape.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

This article originally appeared on Lighthouse.