E-invoicing compliance

///E-invoicing compliance
E-invoicing compliance 2017-11-09T16:48:05+00:00

A challenge to meet changing e-invoicing requirements

E-invoicing compliance is a must for companies to be able to handle VAT and other taxes correctly to not incur fines or other penalties, and to be able to make VAT deductions correctly. Given the variation in local standards, infrastructure and regulations from one country to the next, compliant e-invoicing is a challenge for most companies, especially those with international business.

Obligations before getting started

A company must often meet certain requirements before it can get started with electronic invoicing. The company might be obligated to report switching from paper invoices to electronic invoices to the tax authority or even to receive approval from the tax authority, or the service provider has to report that it will start processing invoices electronically on behalf of the client.

Often, the supplier must get the invoice recipient’s consent to switch from paper invoicing to digital invoicing. It is also important to investigate whether an electronic invoice constitutes a valid document for tax purposes or not.

What to consider in the e-invoicing process

During the e-invoicing process, the company must look at technical format and syntax requirements as well as requirements connected with document integrity and authenticity. In some countries, there is only one way to fulfil these requirements, while other countries offer a greater range of options. There may also be discrepancies within the same jurisdiction.

The content of the invoice is an important consideration. This includes the minimum content requirements as per the applicable tax legislation, but also industry or buyer specific content requirements.

Some countries require the recipient to send a receipt or some other form of acknowledgement to the supplier or the issuer indicating that they have received the invoice and that it is correct, or that they have received the invoice but it cannot be processed in the received state.

Archiving requirements

Last but not least, it is important to look at archiving requirements. How will the e-invoices be archived? Which documents must be stored and for how long? Are there any auditability requirements? In some countries, there may be a requirement to archive locally. Other countries may allow archiving abroad, but the tax subject must obtain consent from the local tax authorities or notify them that the company will be storing their e-invoices somewhere else.

We want to simplify operations for our clients

We are passionate about simplifying operations for our clients and to take on the complexity entailed by compliance in the e-invoice processing so that our clients can focus on their core business.

We offer our clients our best practice and interpretation of each market. The conclusions and services we offer can be explained through documentation or dialogue with the client, to give the necessary comfort that our solution is sufficient to meet the client’s needs.

Partnerships for top quality compliance services

Pagero partners with external experts to ensure the highest quality of our services.

Leading audit and consultancy firm Deloitte provides Pagero with information about e-invoicing legislation development on a global level. They help us interpret it and suggests best practices, so that we can secure top quality compliance services over time for our customers.

Pagero partners with legal and technical expert TrustWeaver to help our customers ensure the integrity and authenticity of electronic invoices and other legally critical documents. We have implemented their cloud-based services allowing us to apply certificates, e-signature formats and e-signature validation in more than 50 countries.

Want to know more?

Please contact us for more information!

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We are currently active in 23 EMEA countries, with another 5 onboarding in the next few months. With the help of Pagero, we have been able to fulfil every tax and legal requirement in every country.
Thomas Bonwetsch, Program Manager, EMEA eInvoicing Program Direct Accounts, HPE.
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