The Critical Role of Managed File Transfer in E-Invoicing Across the EU

As the EU shifts toward e-invoicing and VAT reporting standards, MFT can serve a vital role as the delivery layer designed to move invoices between businesses, partners and tax platforms.

E-invoicing is becoming one of the most significant operational and compliance shifts facing European businesses today. What started as a public-sector interoperability initiative has evolved into a continent-wide transformation of how invoice data is produced, exchanged, validated and reported.

As the EU progresses toward wider B2B e-invoicing mandates and near real-time VAT reporting under the VAT in the Digital Age (ViDA) package, organizations are under pressure to modernize both the structure of their invoice data and the way they transport it across systems and borders.

This is where Managed File Transfer (MFT) becomes critical. While ERP systems and e-invoicing platforms handle the creation and validation of structured invoice data, MFT provides a secure, policy-driven and reliable delivery layer designed to move these invoices between internal systems, business partners, PEPPOL access points and national tax platforms. Many organizations use enterprise-grade MFT solutions—including platforms such as Progress MOVEit—to manage these structured data flows at scale.

This article explores how managed file transfer supports secure, compliant and scalable e-invoicing across the EU, from regulatory foundations to practical implementation and future digital reporting requirements.

What E-Invoicing Means in the EU

In the EU context, an electronic invoice is not a PDF or scanned document. Under Directive 2014/55/EU, an e-invoice must be:

1. Structured (machine-readable)
2. Semantic and standardized, following the European standard EN 16931
3. Interoperable across member states
4. Automatically processable by the receiving system

The purpose of EN 16931 is to eliminate fragmentation and allow every EU government body—and increasingly every business—to receive and process invoices automatically, regardless of country or software vendor.

Over the past few years, this framework, originally designed for business-to-government (B2G) transactions, has expanded significantly. As part of the VAT in the Digital Age (ViDA) initiative, the European Commission aims to:

• Make structured e-invoicing the default format for intra-EU B2B transactions
• Introduce digital reporting requirements (DRR) with near real-time submission of invoice data to tax authorities
• Harmonize national real-time reporting systems
• Reduce deviations in invoice syntax and formats

This shift means invoice data will move more frequently, more securely and more predictably—and organizations need a reliable transport layer that supports these demands at scale.

Regulations and Standards Shaping EU E-Invoicing

1. Directive 2014/55/EU & EN 16931

This directive requires all public contracting authorities to receive and process invoices compliant with EN 16931. The standard defines:

• A common data model
• Mandatory and optional business fields
• Syntax rules (UBL, UN/CEFACT CII)
• Validation mechanisms
• Country-specific extensions (CIUS)

As a result, invoice data increasingly flows through automated, machine-to-machine channels rather than manual or email-based ones.

2. PEPPOL & the AS4 Protocol

Many EU countries rely on the PEPPOL network for exchanging e-invoices with government entities and, increasingly, B2B partners. PEPPOL specifies:

• Document formats aligned with EN 16931
• A four-corner transport model using certified Access Points
• The AS4 protocol for secure, reliable message exchange

Organizations often integrate directly with PEPPOL Access Points using APIs or via secure file transfer managed by an MFT platform.

3. Continuous Transaction Controls (CTC) & National Platforms

Some EU member states have introduced or are transitioning toward real-time invoice clearance or reporting systems. Examples include:

• Italy’s SDI
• Poland’s KSeF
• France’s PDP/PPF framework
• Spain’s Verifactu

These systems require timely, validated and more secure transmission of structured invoice data.

4. GDPR & Data Security Requirements

Invoices contain personal and financial information, which brings obligations around:

• Confidentiality
• Access control
• Integrity
• Auditability
• Storage and retention

MFT helps organizations meet these requirements through encryption, logging and policy-driven governance.

The Benefits of MFT in EU E-Invoicing

As e-invoicing becomes increasingly structured, regulated and time-sensitive across the EU, the way invoice data is transported is just as important as how it is generated. Organizations need a delivery layer that helps every invoice and reporting payload reach the correct system—securely, consistently and with full traceability.

This is why managed file transfer has become a foundational component of modern e-invoicing architecture, supporting both compliance obligations and operational efficiency.

1. Security and GDPR Compliance

MFT supports encryption of invoice files in transit and at rest. It also applies:

• Role-based access controls
• Multi-factor authentication
• Integrity checks
• Certified cryptographic methods
• Detailed logging for audits

This helps protect invoice data and helps demonstrate GDPR compliance.

2. Delivery Reliability

With e-invoicing now tied to tax compliance, a missed or delayed transmission can have financial and regulatory consequences. MFT delivers:

• Automatic retries
• Delivery mechanisms designed for reliability
• Acknowledgement handling
• SLA-based alerting
• High-availability options

This reliability is essential for real-time reporting under ViDA.

3. Automation of End-to-End Workflows

E-invoicing often involves multiple steps:

ERP → Validation → Transformation → Routing → Delivery → Acknowledgement

MFT platforms can orchestrate these workflows automatically. Some organizations use automation capabilities to streamline:

• Invoice pickup from ERP systems
• Syntax validation routing
• Delivery to PEPPOL Access Points or national portals
• Processing of response files
• Archiving and compliance storage

Automation reduces operational effort and minimizes risk.

4. Centralized Governance and Visibility

E-invoicing creates complex multi-channel data flows. MFT centralizes them by providing:

• One view of all invoice deliveries across countries
• Traceability for every file and user
• Central policy management
• Standardized compliance reporting
• Easy troubleshooting for rejected or delayed invoices

This helps finance, tax and IT teams maintain a consistent compliance posture across the EU.

5. Scalability for Expanding Compliance Requirements

As more countries adopt structured e-invoicing and real-time reporting, invoice volumes increase dramatically. MFT is built for high-volume, machine-to-machine data exchange and can scale quickly without rewriting integration logic.

Best Practices for Using MFT in E-Invoicing Projects

Because e-invoicing workflows can span multiple countries, systems and reporting obligations, implementing MFT effectively requires more than simply setting up secure transfers. It involves designing governance, automation and monitoring around the specific regulatory and operational requirements your organization faces.

The following best practices help ensure that your MFT-enabled e-invoicing processes remain compliant, scalable and resilient as EU rules continue to evolve.

1. Map Regulatory Requirements Before Designing Flows

Identify:

• Which countries require EN 16931 formats
• Whether PEPPOL applies
• Whether a national CTC or reporting platform is mandatory
• SLA and latency requirements

MFT workflows should then be structured around these compliance needs.

2. Centralize Invoice Transport Through MFT

Avoid multiple, inconsistent delivery methods (email, cloud links, ad-hoc FTP scripts). Centralization can help enable:

• Standard security controls
• Stronger governance
• Better audit readiness
• Easier scaling

3. Automate Validations and Return-Message Handling

Automating routing, delivery and acknowledgement processing reduces manual intervention and prevents compliance failures.

4. Implement Robust Monitoring and Alerting

Use MFT to proactively monitor:

• Failed transmissions
• Delayed acknowledgements
• SLA breaches
• Volume anomalies

This is essential for real-time reporting expectations under ViDA.

5. Align Access Control and Logging With GDPR

Verify that your MFT platform uses strong authentication, strict role definitions and tamper-evident activity logs.

6. Select the Right Deployment Model (Cloud vs. On‑Prem)

Once policies, controls and monitoring are defined, the final step is choosing how your MFT platform is deployed, whether that is a cloud‑native SaaS service, such as Progress Automate MFT, or as an on‑premises or hybrid deployment using Progress MOVEit to align with your infrastructure needs.

The Strategic Role of MFT in the Future of EU E-Invoicing

As the EU moves toward harmonized, digital-first VAT reporting, invoice data will flow continuously between businesses and tax authorities. This creates a dependency on secure, dependable and auditable data transport.

E-invoicing solutions help create compliant invoice data. MFT can help facilitate data delivery to the intended destination with security and reliability in mind.

With upcoming requirements under ViDA, and increasing adoption of national CTC systems, a robust MFT layer is quickly becoming a foundational component of every organization’s finance and compliance architecture.