Due to the success of e-invoicing regulation introduced in Chile in 2002, more than 80 governments worldwide have since followed suit and introduced some e-invoicing or CTC obligations, with many more expected to do so over the coming years. There is no sign of things slowing down, with the existing obligations constantly being changed and revised.
As other governments adopt similar strategies to reduce the VAT gap and digitalisation of their economies, and as technology advances, the focus isn’t only on compliance. There is a big emphasis on finance automation across order-to-cash (O2C) & purchase-to-pay (P2P) processes.
The European Commission (EC) recently published its VAT in the Digital Age (VIDA) proposal , which will drive even more automation, digitalisation and standardisation across CTC among the Member States. The European Commission aims to encourage businesses to digitalise their everyday processes.
Once organisations fall under the scope of these mandates, non-compliance is not an option. Governments will impose penalties on those taxpayers that do not meet their obligations. Therefore organisations have no choice but to find a compliant solution to meet the requirements.
Typically global, multi-national organisations have tackled these obligations reactively and resolved them country by country by implementing disconnected solutions and processes. Before they know it, organisations have ended up in a spaghetti of software, misaligned data and layered, often overlapping processes.
It hasn’t been until organisations realise the overall cost of sourcing these solutions, managing multiple providers or the IT function gets fed up with building multiple connections that the penny drops, and this becomes a priority at a global level.
Understanding the overall cost of sourcing, implementing and managing multiple compliance service providers across your organisation has never been more critical.
With so many existing and upcoming mandates on the horizon, it no longer makes sense to manage these mandates locally or with a reactionary approach. A global strategy is now the only way forward for large multinationals.
This presents an opportunity for businesses to consider the best way for their teams to operate at maximum output with confidence, complying with international CTC e-invoicing obligations in the most efficient way possible so that there are time and resources to leverage strategically across the organisation.
Pagero is ERP agnostic and will limit the changes across your organisation due to our networked solution. When there are new regulations or modifications to existing ones, we monitor these, take care of the heavy lifting, and convert the data into the format required by government hubs.
With one master agreement, you can easily switch on countries as the mandates go live. With a dedicated service team assigned to your organisation, we will work closely with your IT & Tax teams keeping you compliant globally.
If you want to discuss how we can help you get set up on the Pagero network, please get in touch. We’d love to hear from you.