With global mandates rolling out at an unprecedented pace, businesses face a complex landscape of shifting regulations, technical requirements, and new clearance models. If your team is feeling overwhelmed by the transition, you are not alone!
To help you navigate these changes, Veronika Althaus, Senior Manager Strategic Partnerships, answers the most common questions about e-invoicing compliance, ERP integration, and cross-functional readiness.
Watch the video or read the transcript below.
Why are so many countries making e-invoicing mandatory?
The main reason for e-invoicing mandates is to reduce tax fraud and close tax gaps. Governments want visibility and control.
They want a clear, real-time view of business transactions, and e-invoicing makes that possible. It allows governments to access transaction data almost instantly instead of reviewing it months later.
Many countries also use e-invoicing to modernise how businesses operate. Take Sweden, for example. We don’t have a mandate there for B2B, but many companies already use the Peppol network to submit and retrieve e-invoices.
While tax fraud is the main driver for e-invoicing, we also see a shift towards processes focusing on digitalisation and standardisation.
What happens if an invoice isn’t compliant?
If an invoice isn’t compliant, it is normally rejected by the tax authority or the customer, which delays payment and impacts your cash flow. This can result in significant fines depending on the size and location of the transaction, alongside the time cost of correcting and resending the messages in question.
Unreliable e-invoicing will inevitably create friction with customers and partners, which damages future business prospects and your reputation.
What’s the difference between clearance and post-audit models?
The difference comes down to when the tax authority gets involved. In a clearance model, invoices must be submitted to and approved by the authority before they are sent to the customer. The transaction is effectively validated in real-time. In a post-audit model, the invoice is sent to the customer first, and the tax authority reviews it later, usually through audits and reporting requirements.
From a practical point of view, clearance models are more restrictive because everything has to be right upfront, while post-audit models give you more flexibility but still require you to stay compliant in case of checks later on.
Who is usually responsible for e-invoicing?
Responsibility for e-invoicing is typically shared across internal teams. The finance or tax teams are generally responsible for compliance and making sure invoices meet legal requirements. IT handles the systems and integrations behind it. In some cases, operations or procurement are also involved.
Given its cross-functional relevance, it is rare for e-invoicing to be owned by one department alone. Clear responsibilities and coordination are essential to keep everything running smoothly.
Can e-invoicing be handled by internal teams?
E-invoicing can be handled by internal teams, but it isn’t always the best approach. To manage it internally, you need to cover many moving parts.
That includes keeping up with changing regulations across multiple countries, maintaining mappings for different formats, handling integrations with your ERP system, and making sure transactions are monitored and issues are resolved quickly.
You also need people with technical and compliance knowledge, as well as processes to manage updates and testing on an ongoing basis. For companies without those resources, it often makes more sense to work with a fully managed provider.
Why is ERP integration important for e-invoicing?
The ERP system is the source of your invoice data, so integration is essential if you want efficient automation. Without ERP integration, e-invoicing processes require manual actions, which increases the risk of errors and delays.
With proper integration, invoice data flows automatically into the required formats and systems, improving efficiency and data visibility. It also makes it much easier to scale e-invoicing across multiple countries.
How long does an e-invoicing rollout take?
The timeline depends on the scope. A single country rollout with a simple setup can be completed in a few weeks.More complex projects involving multiple countries or systems can take several months.
Internal readiness also plays a big role in determining how long a project will take, especially regarding data, processes, and resources.The best way to ensure your rollout is as fast as possible is to adopt a phased approach, starting with key countries and expanding from there.
What should you look for in an e-invoicing provider beyond basic country coverage?
Beyond country coverage, look for an e-invoicing provider that can reduce the day-to-day burden of compliance.
Consider how their solution integrates with your ERP system. If this connection isn’t solid, everything else becomes harder to manage and data visibility will be poor.
Another important factor is how regulatory changes are handled. Ideally, updates should be managed centrally without requiring input from your team. Finally, look for a solution that is flexible and able to support you as requirements change.
