Digitalization of tax: Plugging into e-invoicing

The promise of e-invoicing

E-invoicing is transforming the way both tax authorities and businesses operate, offering tangible benefits that go far beyond compliance.

For tax authorities, it means:

• Improved compliance and accuracy through better data quality;
• Increased administrative efficiency;
• Enhanced audit capabilities with complete invoice data;
• Reduced shadow economy activity; and
• Better data and insights for policymaking. 

And for businesses, e-invoicing can:

• Streamline invoicing processes;
• Improve cash flow management;
• Provide real-time verification and validation;
• Create better supplier and customer relationships; and
• Be a catalyst for wider process change. 

Despite the many potential benefits of e-invoicing, confidence in its positive impact is declining according to the recent Deloitte Global Tax Policy Survey. Although the adoption of e-invoicing is inevitable, challenges lie in:

• The lack of global standards;
• Technical implementation challenges; and
• Organizational change management

Returning to optimism

While hurdles identified may dampen enthusiasm, e-invoicing remains a key priority. Those finding success are taking a proactive, structured approach, which includes:

• Defining a comprehensive strategy that addresses the growing complexity of e-invoicing and its direct impact on supply chain efficiency.
• Addressing both outbound and inbound invoicing requirements, understanding that compliance rules and formats can differ across transactions.
• Enhancing data quality and integration, ensuring accurate reconciled information across tax processes for smoother controls.
• Selecting technology solutions that align with business needs and evolving regulatory demands.

By focusing on these actions, organizations can better navigate the complexities of e-invoicing and position themselves for long-term compliance and efficiency.