With an array of tax laws, rules and regulations across various countries dealing in multiple currencies, it’s no wonder that global invoice compliance gets complicated quickly. But don’t struggle through the painful details alone, there are global AP automation experts that can help.
Multinational organizations often overcomplicate the process of global AP compliance by trying to manage the complexities of multiple local invoice regulations themselves. But what they really need is a platform that will help them comply with local invoicing regulations automatically through global AP automation.
How to Vet Global AP Automation Solutions
Seek out a provider with global expertize in addition to solution functionality. According to PayStream Advisors, global AP providers must offer more than currency and language support, demonstrating a deep knowledge of various countries’ e-invoicing regulations and adjusting quickly as largely unregulated regions (APAC) present new compliance challenges.
PayStream’s 2017 Global AP Automation Report insists that solution providers must also provide some core capabilities, including:
Flexible invoice receipt options
Invoice validation and exception management
Dynamic discounting management
Electronic payments integration capabilities
Working capital offerings that help suppliers maintain stable cash flow
Implementation and IT personnel that understand country-specific technical requirements for electronic invoicing (e.g. a company operating in Brazil needs a provider familiar with the Brazilian tax authority & CTe invoice)
What to Ask Global AP Automation Providers
Beyond having experience in the markets where they operate, PayStream encourages organizations to ask a series of questions of providers before deciding upon a solution.
Where are the provider’s clients (which countries and how many in each country)?
What industries are the provider’s clients in?
What market segments are the provider’s clients in?
Has the provider built new, region-specific features or support for any clients?
How long has the provider been operating in each of its supported countries/regions?
Where AP Automation Will Rise
PayStream notes that the Latin American market is the world’s leading region for e-invoicing adoption but also presents the highest level of regulatory complexity. e-Invoicing is mandatory for all businesses in Brazil; Peru is moving in that direction, and the Mexican government’s e-invoicing mandates are extensive and involve the use of third-party providers (PACs) that assist with invoice certification. Apart from Latin America, there is a high level of regulatory complexity in Indonesia, South Korea, Russia and Turkey. In the Middle East, countries are not presently reliant on a VAT-based system and are less motivated to mandate e-invoicing, although adoption should increase as the Gulf states adopt a VAT system. With the exception of South Africa, countries in Africa have not taken to e-invoicing, but interest should grow as these countries solidify their VAT regulations.
Why Basware Can Help
With over 30 years in the industry, Basware has developed expertize in e-invoicing and global AP automation best practices throughout the world. PayStream’s report profiles Basware, noting our compliant e-invoicing support in over 60 countries across Europe, the Americas and other regions. Through a local partner, we support the most common Latin American invoice requirements – including those for NFe, CTe, CFDI and DTE – and our notifications from tax and regulatory authorities allow us to adjust to any changes. As PayStream observes, “a global AP solution should also have the resources in place to continually help their customers as regulations change.” The report notes that we support almost every European country through standard services, and custom services are available in other areas. Basware also supports e-invoicing compliance in APAC and Russia through local partners.
For a full introduction to e-invoicing on a global scale, download PayStream Advisors’ 2017 Global AP Automation Report.