I hope you enjoyed my last blog post and are starting to consider e-invoicing as a priority for your organization in the coming year. In my next post I will explain how the complexity of an e-invoicing solution is overstated and easily avoided.
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Rule 5: Compliance is key (but complexity is easily avoided)
We understand that businesses today have to deal with numerous rules and regulations. For many, the act of complying is an essential requirement of doing business, and we all know that the penalties for failing to do so can be severe and damaging to a brands reputation and fiscally. When an organization does business overseas, this is even further compounded.
However those organizations that see this as a barrier to e-invoicing are greatly mistaken. New regulatory frameworks and directives have actually gone as far to simplify the challenge caused by numerous rules and regulations. We are now seeing paper and electronic invoices treated the same, across a number of different jurisdictions.
What organizations need to learn is that e-invoicing supports rather than hinders global transactions. E-invoicing providers can offer multiple formats and options that automatically comply with differing countries’ legislation and invoicing requirements. Complexity really isn’t an issue here.
Like so many of the other myths previously covered, this is something that should not be your organizations responsibility to overcome. It is your e-invoicing operator that should be able to provide this as a core service, removing the burden of ongoing global regulatory and tax compliance.
As an example starting from 1st January 2013 EU member states will apply the second Directive on VAT invoicing which aims to simplify invoicing rules and remove the burdens and barriers associated with invoicing. It establishes equal treatment between paper and electronic invoices without increasing the administrative burden on paper invoices and has the aim to promote the uptake of e-invoicing by allowing freedom of choice regarding the invoicing method.
My advice is to look for a solution that is already compliant with all the major tax authorities and regulators worldwide. A prime example is an open e-invoicing network that includes service providers from across jurisdictions that stay up-to-date on local VAT regulations. This approach will deliver two major benefits for your organization. Firstly it will outsource all the complexity of VAT compliance to a reliable partner and will save significant time and money in accounts receivable and accounts payable.