Within the last few years, e-invoicing has become increasingly mandatory in many countries and all signs continue to point to digitalization, which means that only more countries will get on the bandwagon of mandatory e-invoicing. Apart from electronic invoices, there are also other electronic business documents, such as delivery bills, order confirmations, and many more.
However, compliance plays a highlighted role in the context of electronic invoices. In general, compliance is crucial for both business owners and tax authorities. After all, tax authorities want to be able to accurately track all direct and indirect taxes with the help of electronic invoices and minimize fraud as much as possible. That’s why many countries have also set themselves the goal of digitizing their invoicing processes in order to fill VAT gaps and be able to adequately finance their public sector.
For companies, compliance means on the one hand that many new challenges arise, as the switch to digital transformation may seem costly at first, but offers numerous advantages in the long run. On the other hand, once established, the e-billing process is essential and ensures not only cost savings but also that all taxes are handled correctly. This significantly reduces the risk of errors and therefore fines and penalties, and the bottom line is that it allows companies to receive their VAT refunds correctly at all times.