Format of the document required by the authority or trading partner
Compliance is a term that you will encounter sooner or later in the context of electronic invoices and e-invoicing. There are good reasons why this is an important aspect when choosing a suitable e-invoicing solution. That’s why we would like to explain in our blog post why compliance plays such a crucial role within your business processes.
E-invoicing in companies
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.
Compliance requirements for e-invoices
Depending on the country and even the tax authority, the framework conditions for electronic documents can differ significantly. Therefore, it is important to know the individual conditions and to use the correct structures. One thing to keep in mind for all of these conditions:
Depending on the country where these processes are carried out, there may be a central requirement that applies to all, or a choice of options based on sector, trading partner, etc. However, in all this, it is still important to note that there are still systems where e-invoices are not yet fully established and therefore not valid for tax purposes.
Become compliant with your documents
Regardless of where and with how many business partners they interact with, regulatory compliance requirements for e-invoicing remain in a constant state of flux and change on a regular basis. As a company, it’s a struggle to stay up-to-date with all of these changes and keep adapting to the new requirements. So how can you ensure that they remain compliant amidst all the chaos?
The answer is that a suitable provider can conveniently do this job for you. However, there are now many service providers that do not ensure compliance or even compliance companies that do not provide the necessary technical support.
So, in order to handle your electronic documents in the best possible way, you need an experienced partner on your side that combines a variety of services for you so that you can not only remain compliant but also fully focus on your business issues. These services include:
- Specialists who are well informed about the legal requirements and monitor the constant changes in the legislation
- A large network with connections to other companies, authorities, and other service providers in order to stay constantly in touch with each other
- Seamless integration of e-invoicing services with existing ERP systems to avoid forcing additional system changes
- Full onboarding support, bringing all business partners on board to learn about e-invoicing so that everyone involved benefits from the mutual effects
- 24/7 support to provide direct, competent, and fast intervention in case of questions and assistance
More information on the individual requirements in all relevant countries can be found in our E-invoicing Countrylist.
Take the step to change now!
Ultimately, you should also make the decision for a service provider based on other criteria, such as the integration needs of your company, among others. If you would like further advice on this, please feel free to contact us or read our blog post on the topic: EDI as on-premise or cloud?
Contact us as your certified e-Invoicing provider with many years of experience!
Do you want to go digital? Contact us now!
We are happy to be there for you – by phone, by e-mail or personally at your site!
Muzaffer Havcarci
INPOSIA e-Invoicing-Specialist
