The advancement of technology and science warrants a comprehensive understanding of e-document and e-invoice compliance necessary for all business owners. If you are a business owner, read on to understand why e-invoice and e-document compliance are essential. Get to know how to meet e-document compliance requirements and much more.
E-documents and e-invoices: What are they?
To understand what e-documents are, let’s know what e-invoices are. E-invoices (electronic invoices) are the best regulated electronic transaction document. With the government’s implementation of various types of digital tax laws, e-invoices have grown in popularity. E-invoices are just one of the several types of e-documents. An e-document is any document that has been electronically generated, transmitted, processed as well as archived.
According to the report, the global e-invoicing market was valued at approximately USD 4,649 million in 2018 and is expected to generate around USD 20,529 million by 2026, at a CAGR of around 20.4% between 2019 and 2026.
Why are e-invoice and e-document compliance important? For business owners, e-invoice and e-document compliance are crucial. VAT and other taxes (relevant to businesses) need correct handling of invoices and data. Taking care of taxation minimizes related risks such as penalties and fines. Proper handling of such taxes also ensures that businesses receive refunds (VAT refunds) timely and correctly. That’s why compliance in terms of e-invoice and e-document is essential.
From the tax authorities’ perspective, e-document and e-invoice compliance ensure stable and predictable tax collection. Compliance can positively influence funding and close the VAT gap for various government initiatives.
There are several conditions and requirements of e-document compliance that businesses must meet. These can vary depending on the country. However, the general conditions include:
Ideally, businesses can meet e-document compliance requirements by companies by implementing the following solutions:
Implement the strategies mentioned above to maximize e-document compliance in your business.
See the benefits of automated invoice management:
Better overview. Less accounting work. More time for your ideas.