How to satisfy E-invoicing compliance requirements

As governments around the world require digitalised methods for E-invoicing and real-time monitoring and reporting of business transactions, global multinational corporations (MNCs) need technologies that can help them manage data-intensive processes that demand speed, accuracy, and transparency all at once. In particular, compliance mandates for E-invoicing /continuous transaction controls (CTC) and real-time reporting present numerous challenges for MNCs that operate in multiple countries.

E-invoicing and real-time reporting are popular with governments because they provide more accurate and immediate tax calculations and help prevent fraud and tax evasion. Unfortunately, a general lack of e-invoicing standards across governments means each country has different filing requirements and technical protocol, which creates complexity and increase compliance costs.

Furthermore, CTC rules demand tax reporting in real-time, or close to it, so MNCs must have systems in place that can meet all E-invoicing/CTC requirements in multiple countries simultaneously.

Traditionally, businesses have had to rely on multiple vendors to ensure local compliance everywhere they operate, with the added complexity, costs, integration issues, data security and lack of standardisation that this brings.

As if this is not enough, manual processes are too slow to keep pace with these data demands, and tax teams in charge of managing and monitoring e-invoicing processes and e-invoicing compliance requirements do it in addition to their normal post-audit tax reporting obligations, adding extra work and stress.

Addressing these issues using a stronger solution

To address these issues and many other complexities of E-invoicing/CTC compliance, global MNCs need integrated software solutions from trusted providers that combine VAT GST and Sales and Use Tax and E-invoicing compliance into a single streamlined workflow that works in every country with an E-invoice/CTC regime.

Recognising the need for an end-to-end tax and E-invoicing solution that can meet various country-specific needs, Thomson Reuters and Pagero have partnered to create a best-in-class global indirect tax-compliance solution that can indeed do it all, including:

  • Determine and calculate tax on all sales and purchases across 205 countries and territories
  • Provide compliant E-invoicing/CTCs for over 70 countries
  • Connect seamlessly between ERP and financial systems to various government networks
  • Automate regulatory updates across all financial systems
  • Provide standard Audit File (SAF-T) data compilation and reporting
  • Prepare Sales & Use, VAT, GST tax-returns and execute electronic filing

Pagero’s E-invoicing expertise

Thomson Reuters partnered with Pagero because the company is one of the leading global providers for E-invoicing and CTC mandates, and its platform ensures universal technical and regulatory compliance for companies of all sizes.

Pagero understands that the E-invoicing/CTC landscape is constantly evolving, and that customers need a compliance solution that will evolve along with it. And, like Thomson Reuters ONESOURCE, Pagero’s E-invoice solution is built on cloud-based technology, so it is fast, scalable, and secure. Pagero is also compatible with all major ERP platforms and financial systems, as well as all government tax systems and invoicing system used by buyers and sellers.

An innovative partnership

By combining Thomson Reuters industry-leading ONESOURCE Indirect Tax platform with Pagero’s innovative e-invoicing compliance services, global MNCs now have a universal solution that can perform all e-invoicing and indirect tax functions in a broad range of countries, no matter what technological and regulatory framework may be in place.

This partnership also allows Thomson Reuters and Pagero to serve customers better by integrating their respective technology platforms and collaborating to build product enhancements such as apps, integrations, and plug-ins. The result is a scalable tax-compliance software solution that makes the international compliance process much more cost-effective and efficient.
Here’s how:

Comprehensive compliance coverage and updates

To begin with, the Thomson Reuters/Pagero partnership means businesses only need one vendor for all of their tax and e-invoice compliance support. That includes VAT/GST calculations, e-invoice processing, and post-audit tax prep and filing.

For example, E-invoicing requires that the correct data fields are being populated and transferred to the host government. Accuracy and timeliness are crucial. Pagero’s E-invoicing solution takes all guesswork out of the process by automatically adhering to local format, content, language, and e-document requirements in more than 70 countries.

Tax regulations are always changing as well, so tax professionals must constantly monitor the regulatory environment in countries where they operate, as well as in countries where they intend to expand. The Thomson Reuters/Pagero ONESOURCE solution automatically scans for regulatory updates and incorporates any relevant changes into its tax calculation costs so compliance is ensured.

Global reach

More than 80 countries already have e-invoice mandates in one form or another, and in the next few years more countries (e.g., Belgium, Poland, and France) are expected to implement e-invoicing mandates or expand on existing ones.

The Thomson Reuters/Pagero solution offers the broadest country coverage of any solution. Indeed, the Thomson Reuters indirect tax engine provides overall regulatory support for more than 205 countries and territories, and Pagero’s e-invoicing solution supports more than 70 countries.

Furthermore, as MNCs expand they need a solution that can help establish operations in unfamiliar countries as quickly and seamlessly as possible. Pagero’s network and universal data-model architecture allows MNCs to connect to all government and business networks through a single connection, significantly reducing the logistical burdens of expansion.

An all-in-one solution

In short, Thomson Reuters/Pagero gives MNCs the flexibility to comply with any country’s E-invoicing and tax regulations, along with the reach to connect with a company’s customers and suppliers through a single global platform. It also integrates seamlessly with existing systems, and lowers costs by automating all data exchanges and minimising IT support needs.

By combining their strengths, Thomson Reuters and Pagero have developed an indirect tax/E-invoice software solution built to deliver a more promising and prosperous future for global MNCs everywhere.

Find out more about ONESOURCE Corporate tax software.

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