E-Invoicing in the USA:
B2G, EDI and DBNAlliance network
Last update: 2026, November 3
Summary
The USA has no nationwide e-invoicing mandate, although federal agencies are required to manage invoices electronically for certain federal procurements. E-invoicing is nevertheless well established in B2B supply chains, particularly through EDI networks.
B2G Transactions
Partially mandatory e-invoicing at the federal level
Federal public administrations must manage invoices electronically for âappropriate federal procurementsâ, but the USA has no general B2G e-invoicing mandate.Â
State and local public entities may also set their own invoicing requirements.
B2B Transactions
No e-invoicing obligation
No e-invoicing or e-reporting obligation applies to business-to-business transactions in the USA, but e-invoicing is possible upon mutual agreement between trading partners.
B2C Transactions
No e-invoicing obligation
No e-invoicing or e-reporting obligation applies to business-to-consumer transactions in the USA.
USA
Table of Contents
What the Law Says
B2G E-Invoicing
There is no countrywide B2G e-invoicing mandate in the USA, but public administrations may set up their own rules and require e-invoicing in some cases.
Since 2015, when Memorandum M-15-19 [âïž] was published, the U.S. Office of Management and Budget (OMB) has directed federal agencies to manage invoices electronically for âappropriate federal procurementsâ.
The policy set 2018 as the target date for agencies to transition to electronic invoicing. Agencies may use a Federal Shared Service Provider (FSSP) or an OMB-approved electronic invoicing solution, such as the Invoice Processing Platform [âïž], supported by the U.S. Department of the Treasury.
This obligation also affects the private suppliers involved in the relevant federal procurements, as they must comply with the electronic invoicing process used for the corresponding B2G transactions.
However, the memorandum does not prescribe a specific e-invoice format or transmission method. The solutions available to federal agencies and their suppliers may therefore range from manual input to automated EDI transmission.
State and local public entities may establish their own invoicing requirements through their procurement arrangements, but there is no general B2G e-invoicing requirement across the USA or even at the level of an individual state.
There is no standard invoice archiving period throughout the USA. Requirements may vary depending on the relevant federal and state rules.
B2B E-Invoicing
The USA does not have a B2B e-invoicing or e-reporting mandate.
Companies may continue to issue business-to-business invoices and receipts through their usual channels, including paper invoices, PDF invoices sent by email and printed receipts.
Electronic invoicing via EDI is also widely used for B2B invoicing in the USA, particularly in supply chains involving large businesses and retailers. The most common standard is ANSI X12, and trading partners usually exchange business documents through direct connections or EDI networks.
There is no standard invoice archiving period throughout the USA. Requirements may vary depending on the relevant federal and state rules.
B2C E-Invoicing
The USA does not have a B2C e-invoicing or e-reporting mandate.
Companies may continue to issue business-to-consumer invoices and receipts through their usual channels, including paper invoices, PDF invoices sent by email and printed receipts.
Timeline
Federal B2G e-invoicing requirement
Federal agencies must manage invoices electronically for "appropriate federal procurements".
DBNAlliance network debut
The first invoice was successfully sent and received over the DBNAlliance network.
EU-US e-invoicing cooperation
Joint EU-US declaration announcing increased collaboration and interoperability in the field of electronic invoicing.
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Status of e-invoicing in the USA
In the USA, there is no harmonised federal sales tax comparable to VAT in Europe. Instead, sales taxes are set at state level, with many states allowing cities and counties to impose an additional local tax.Â
As a result, tax-fraud prevention, one of the main drivers of e-invoicing mandates elsewhere, is less of a priority for the authorities. This helps explain why the USA currently has no nationwide e-invoicing mandate or announced plan to introduce one.
Nevertheless, EDI is already widely used voluntarily by US companies, particularly in B2B supply chains. According to the billentis report, around one-third of invoices in the USA are exchanged electronically. The most widely used standard is ANSI X12.
Joint EU-US declaration of cooperation
Electronic invoicing can improve invoice processing, reduce manual work and support faster, more efficient payment and settlement processes.
Encouraging the digitisation of invoices and payments is therefore a key objective for the Federal Reserve Banks [âïž]. Structured invoice data can also improve visibility over economic activity and support more effective public-sector processes.
These benefits are helping to strengthen government interest in e-invoicing. In April 2024, the European Commission and the United States issued a joint EU-US declaration [âïž] to increase cooperation and interoperability in electronic invoicing.Â
The declaration is not a US e-invoicing mandate, but it signals a shared intention to facilitate cross-border invoice exchange. Its key principles include:
- Connect once, connect with everyone
- No roaming fees between Access Points (APs)
- Open exchange networks, allowing users to choose their Access Point
DBNAlliance Network
E-invoicing in the USA is not primarily driven by tax authorities, but by the payments industry and the need to modernise processes that still often rely on paper cheques and manual handling.
Recognising the potential efficiency gains that e-invoicing can deliver, the Business Payments Coalition (BPC) led an e-invoicing market pilot in 2022 involving more than 600 organisations.Â
Participants in that pilot subsequently established the Digital Business Networks Alliance (DBNAlliance), a non-profit organisation that governs an open invoice-exchange framework.
The DBNAlliance has developed the DBNAlliance network, a decentralised e-invoicing network that shares many similarities with Peppol, enabling businesses to exchange invoices through participating Access Point service providers.
A significant milestone was reached on March 5, 2024, when the first invoice was successfully transferred through the network [âïž], demonstrating that the exchange framework was operational.
A state-level example: Californiaâs Fi$Cal initiative
The state of California is digitizing its public procurement processes through the Fi$Cal [âïž] initiative, aiming to perform budgeting, procurement, cash management and accounting functions transparently and efficiently across the state.
As part of this effort, Fi$Cal seeks to increasingly facilitate e-invoicing between the state and its partners, as outlined in its 2024 vision [âïž].
The Invoicing Hub Word
United States of America
E-invoicing is well established in the US B2B sector, with over one-third of invoices exchanged electronically across the country, according to the Billentis report.
However, until recently, the US government had made relatively limited efforts to promote e-invoicing. Although a limited federal B2G requirement exists, it does not prescribe a specific e-invoice format or delivery method, which has limited its impact on wider adoption.
The absence of a federal VAT system has also contributed to this slower adoption. VAT-fraud prevention, usually a major driver for governments to mandate e-invoicing, is less relevant at federal level.
Still, the benefits of e-invoicing, including greater efficiency, transparency and improved access to invoice data, are increasingly recognised. This is illustrated by the joint EU-US declaration on e-invoicing issued in April 2024, involving the European Commission and the US federal government.
This development, together with the creation of the DBNAlliance and its decentralised network, could help accelerate the growth of e-invoicing in the USA. The use of globally recognised standards should also make it easier for companies across the country to adopt interoperable e-invoicing.
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Official Resources [âïž]
Office of Management and Budget of the White House, overseeing B2G at the federal level
Non-profit organization governing a Peppol-like decentralised network in the USA
Official Treasury platform for federal B2G e-invoicing
Initiative promoting more efficient business payments, including electronic invoicing
US standards body responsible for the widely used ANSI X12 EDI standard
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