E-invoicing for B2B transactions is permitted but not yet mandatory in Canada. However, in the last years the Canadian government has been promoting e-invoicing and has introduced certain requirements.
In 2018, it introduced a requirement for all federal suppliers to accept e-invoices and exchange e-invoices in public procurement through the PEPPOL network. Also, it has mandated that all e-invoices exchanged must be in the Universal Business Language (UBL) format.
In 2021, it set up a task force within the Canadian Revenue Agency (CRA) to study the feasibility of a B2B e-invoicing mandate in Canada. The CRA’s goal is to evaluate how e-invoicing can benefit businesses through efficiencies, improve sales tax compliance, deter participation in the underground economy, and improve the taxpayer e-invoicing experience. Phase II of the study will focus on investigating international standards and various e-invoicing models, their benefits, challenges and interaction with other technologies (e.g. SAF-T).
