Each country has its own unique set of rules and regulations and maintaining compliance is one of the key challenges for e-invoicing. While B2B efficiencies can be captured through Electronic Data Interchange, you need to adhere to government requirements in compliant e-invoicing in all countries you do business at. Regulations have different requirements and adhering to them is what it means to be compliant.
TrustWeaver assumes responsibility for compliant e-invoicing in over 50 countries and millions of companies. It allows enterprises and their solution providers to decouple guaranteed VAT compliance from daily business operations and processes. It ensures compliance regardless which laws apply or how they change over time.
Depending upon the location of a supplier or buyer, there are certain requirements. These include:
- A government-validated invoice number
- EDI, digital signatures, government mandated systems and other means of guaranteeing invoice integrity and authenticity
- VAT and commercial data fields
- Long-term invoice archiving
There are differing regulations for electronic invoicing for every company that trades internationally. For instance, European Union countries have implemented e-invoicing regulations since 2001 and Latin American countries have mandated government-controlled systems in tax collection. If your company fails to meet various country-specific requirements, you could end up facing sanctions.
These sanctions can be in the form of repayments and fines. You should be aware that they can be severe. You could be repaying the entire deducted amount over a number of years. This could be very damaging to your business.
Although e-invoicing compliance can be complicated, it should not stop you from moving your paper invoices to electronic ones. The first step will save you money and the next will bring you closer to compliance. If half of your invoicing is done electronically within two years, you can consider it a success.