Deloitte supports your digitalisation journey—from navigating regulations and shaping strategy, to selecting and implementing technology, and long-term maintenance and governance.
With tax authorities digitizing returns and data exchange, corporate taxpayers are faced with the need to change their own processes to keep up. Tax teams need to understand digital filing requirements, demands for information in specific formats, real-time submission of returns and the implications of tax authorities’ use of data analytics for risk profiling and auditing.
Key challenges arise especially when tax authorities mandate real-time (or near real-time) submission of transactional invoice data. These mandates shift the traditional tax compliance approach so that it is no longer good enough to make adjustments at month end before the filling deadline. Instead, it is necessary to be compliant from the start of the business process and to have real-time insights into the data that the tax authorities are receiving.
The expectation of tax authorities
As tax authorities embrace digital tools and expand their use of data analytics, companies need to establish visibility and structure around their data sources, formats, and what is submitted digitally for tax compliance and reporting. These evolving requirements lead businesses to need better tools and to implement software solutions to remain compliant.
Preparing for the future of e-invoicing—key questions:
Data: If an e-invoicing mandate was introduced, would the quality of your data support efficient digitalisation? Is your data spread across multiple or custom-built systems?
Technology: Is your current system equipped to manage the correct application of e-invoicing or e-reporting requirements across multiple jurisdictions? Do you have confidence in the processes, solutions, and controls within your existing e-invoicing/e-reporting setup?
Legal: Are you confident that your organisation complies with existing and emerging digital requirements?
Benefits and common challenges faced by taxpayers
Benefits
Cost savings by reducing the spend associated with paper, print, and manual data entry
Efficiency gains and improved cash flow: Automated invoicing speeds up billing cycles, enabling tax process automation and improvement and faster settlement times
Improved accuracy: Automated workflows can reduce errors disputes, and improve accuracy of financial data
Scalability: E-invoicing solutions can be extended across multiple countries as requirements evolve
Compliance and audit readiness: E-invoicing systems help maintain accurate records, improving compliance with regulatory requirements, and facilitating audit preparation
Challenges
Multiple or custom-built enterprise resource planning (ERP) systems lead to complex implementations
Data complexity means configuration is less straightforward
Varying go-live timelines across geographies lead to overlapping or missed deadlines
Coexisting industry tools
Implementation costs compete with other budget demands
How we can help
The right technology can make your tax department more efficient and effective. Streamlining and automating processes should free tax professionals to focus on high-value work, while bringing accuracy, transparency, and control to your tax function and tax positions.
Deloitte has a leading and integrated, global network of tax advisory and tax technology specialists providing trusted insights and a solution agnostic approach. While our recommended approach is often centralised for efficiency, we are flexible and can support your organisation in adopting the model that works best for you—whether managed centrally or tailored country by country.
Tax Advisory support
Deloitte provides comprehensive tax advisory support to help align your e-invoicing solution to the tax laws and regulations in every country within scope.
Our support includes:
Understanding legal requirements: Coverage, inclusions, exclusions, special transactions and documentation.
Discovery phase: Analysis of your technical and tax requirements to ensure alignment.
Technology recommendations: Evaluating and identifying the best solution for your needs—whether it is a 3rd party provider or Deloitte’s own solution.
Solution integration: Ensuring the chosen e-invoicing solution integrates seamlessly to existing systems.
Project Management support
Deloitte offers end-to-end project management to ensure smooth implementation and on-time delivery of your e-invoicing solutions.
Our support includes:
Roadmap and blueprint: Detailed plans for changes to ERP/IT systems and integration with e-invoicing technology.
Implementation oversight: Full project management, including timeline, testing, User Acceptance Testing (UAT), and go-live support.
Support for multiple countries: Global and local expertise to support project management across all countries in scope.
Solution support
Deloitte offers comprehensive solution support to ensure successful implementation and ongoing support.
Countries with Deloitte solutions:
Malaysia: DeInvois
China: Digital T-suite
India: Bolt-On
Other Asia Pacific countries: Partnering with global 3rd party providers such as Avalara, Edicom, Pagero, and Sovos to support implementation of SAP Document and Reporting Compliance.
Deloitte’s Digital Tax Atlas is a powerful global tracker designed to help businesses monitor shifting tax regimes and real-time reporting requirements across jurisdictions
What are the core e-invoicing models in Asia Pacific?
At the most basic level, there are essentially two core-invoicing models we see (within which there are various sub-variations).
The Interoperability model (otherwise known as 4 corner model) – this model uses a network of private service providers governed by an overarching regulated document format and exchange methodology. This model centers on direct interchange of documents between businesses with subsequent relay to the government on a post-audit basis. The most widespread regulator and document exchange format of this model is called PEPPOL. Countries which have adopted PEPPOL e-invoicing in APAC include Australia, Singapore and Japan.
The Clearance Model – this model entails the government clearance of an invoice (fiscal validation and approval) before or after issue of the invoice to your supplier. Here the country tax administration defines its own structured format to be used by tax subjects. This is the most prevalent model seen in APAC, with India, Kazakhstan, Bangladesh Indonesia, the Philippines, Vietnam, Korea, Taiwan, China, Thailand and soon Malaysia adopting this model.
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How can Deloitte help you on your journey?
E-invoicing and digital reporting matrix
Customised matrix based on the business’s tax footprint, containing standardised requirements and a jurisdictional status of existing e-invoicing and digital reporting mandates.
Roadmap of developments
Implementation roadmap for system readiness, setting out the key stakeholders and key deadlines. The roadmap includes a report of upcoming developments and functional specifications.
Gap analysis
Assessment outlining where companies are required to comply with e-invoicing mandates on a country-by-country basis. The gap analysis includes a technical specifications analysis regarding the company’s current state for e-invoicing/reporting.
Solution selection and implementation
Assist companies with the coordination of e-invoicing vendor solution selection and implementation. For this purpose, Deloitte professionals use a pre-defined methodology with the aim of driving key criteria that will be used for the evaluation of solutions.
Knowledge transfer
Coordination with Deloitte professionals who can assist on outlining strategic plans for knowledge transfer sessions based on a company’s global tax footprint.
Customised developments
Supplemental services to track and document e-invoicing/reporting developments tailored to a company’s global tax footprint, complied in an easy to navigate database.
