Source: European Commission, Taxation and Customs Union With e-invoicing and e-reporting merged together, the process of exchanging invoices data between suppliers and buyers become more streamlined while enabling tax authorities to retrieve the much-required VAT information in real time. Pre-clearance is not accepted in ViDA DRR, so the adaption is anticipated for these countries to converge to ViDA. For example, in Europe, pre-clearance centralised model is used in Italy, Romania and Poland. There is a pre-clearance model that some countries have adopted where suppliers must submit the invoices to the tax authorities first after the approval from the tax authorities, the invoices can be forwarded to the buyers. Again, the implementations vary from region to region, but the principle is similar. Several countries in the European and LATAM regions have combined e-invoicing and e-reporting requirements into one mandate. Invoices are the main source of information for VAT and business activities therefore, e-reporting becomes an extension of e-invoicing, organically. Merging the pros of e-invoicing and e-reporting Generally speaking, it is suggested to keep track of the following statuses – It helps in extensively monitoring the life cycle of the declaration transmissions. The e-reporting flow comprises the records of all the stages through which the information passes – from the receipt by the specific dematerialisation platform to its declaration to the national platform. This also helps both suppliers and buyers to complete the e-invoicing process without intermediation while only having to provide the required data to the country’s tax authorities. However, a few countries like France, use a decentralised model to allow businesses to choose either public or private dematerialisation platform continuing to use their current platform can help businesses to minimise their cost of reinvestment. For the most part, e-reporting is centralised model, meaning that businesses send transactions to the platform of tax authorities. Although, an e-reporting requirement is likely to link to an e-invoicing mandate, it can also be a stand-alone one.įurthermore, e-reporting can vary depending on the type of transaction. The electronic reporting mandate allows tax authorities to better estimate the VAT information, track performance and trends in the economy, detect inconsistencies, errors, and frauds early, and much more. However, a few countries (for example: SII Spain) do require the buyer to send the VAT invoice transactions consequently, in France e-reporting, some specific transactions such as self-billing, intra-community acquisitions, and so on, are required.Į-reporting is also known as real-time reporting as the transmission of data happens in real time or near real time. Read this detailed blog to understand the nuances of e-invoicing and e-reporting, and how SAP Document and Reporting Compliance (SAP DRC) is the way to go forward.Įlectronic reporting or e-reporting is a process in which vendors electronically transmit value-added tax (VAT) data directly to the tax authorities. With e-invoicing and e-reporting, real-time reporting on business activities is possible, which is a need in the end-to-end tax management landscape. Along with this, the COVID-19 pandemic acted as a catalyst in pushing forward digital technologies like e-invoicing and e-reporting. But what made this concept grow multi-fold? There can be multiple factors supporting this argument – amongst them, minimising compliance risk and sustainability. The concept of e-invoicing and e-reporting is not new however, its relevance has grown exponentially in recent years. What makes TJC Group stand out from the crowd?.TJC Group’s methodology for SAP DRC implementation.Choosing TJC Group as your partner for SAP DRC.Stay compliant and ahead in today’s digital world.Benefits of integrating SAP DRC for e-invoicing & e-reporting.Extensibility platform to extend and create scenarios.Complications in reconciliation of e-invoice data and VAT returns.Complications while integrating the ERP systems.Legal and regulatory compliance in different countries.Challenges of e-invoicing & e-reporting.How can organisations prepare for the e-invoicing mandate?.In-depth insights into spending and savings Key benefits of e-invoicing and e-reporting.What are the different models for Continuous Transactions Control (CTC)?.What are the different channels for e-invoicing?.The different formats for e-invoicing and e-reporting.How is e-invoicing deployed across the world?.Merging the pros of e-invoicing and e-reporting.
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