In recent years, the governments of various countries have introduced
measures
to combat tax fraud and improve consumer trust
through the implementation of electronic invoicing systems.
These systems allow the generation of verifiable and authorized invoices
directly by tax authorities, providing more rigorous control
over commercial transactions.
An electronic invoice is a digital document that records a transaction
between a buyer and a seller.
What distinguishes it from a
conventional invoice
is that it must meet certain technical and legal requirements to be
validated
by the relevant tax authority. In general, the process includes:
Creation: The invoice issuer generates the document in electronic format.
Validation: The invoice is sent to the tax administration to be validated and authorized. This step ensures that the invoice data is correct and complies with tax regulations.
Certification: Once validated, the invoice receives a unique code or digital certificate guaranteeing its authenticity.
Storage and Access: The electronic invoice must be stored by both the issuer and the receiver, ensuring its accessibility for future audits.
Each European Union country is adopting its own electronic invoicing system with particular characteristics. Below is a brief overview of the systems implemented in some of the member countries:
Spain: Two main systems are used: Verifactu and TicketBAI. Verifactu is the system for verifying invoices issued by businesses and professionals, while TicketBAI is mandatory for companies in some regions, such as the Basque Country, and focuses on controlling the proper declaration of sales.
Italy: Italy has been a pioneer in the adoption of electronic invoicing with its Sistema di Interscambio (SdI) system, which requires all companies to issue electronic invoices for both B2B (business-to-business) and B2C (business-to-consumer) transactions.
France: In France, the system is called Chorus Pro, mandatory for all companies issuing invoices to the public sector, with plans to expand its use to general commercial transactions.
Portugal: The Portuguese electronic invoicing system is known as e-Fatura, which requires all invoices to be electronically registered with the Autoridade Tributária e Aduaneira.
Germany: Although the adoption of electronic invoicing has been slower in Germany, ZUGFeRD has already been implemented to facilitate the creation and processing of electronic invoices in a hybrid format, compatible for both humans and electronic systems.
Not only EU countries are adopting these measures. Several countries outside the Union have also implemented or are in the process of implementing electronic invoicing systems. Some examples include:
Mexico: The CFDI (Comprobante Fiscal Digital por Internet) system is one of the most advanced worldwide. In Mexico, all commercial transactions must be registered and validated by the Tax Administration Service (SAT).
Brazil: The Brazilian system, known as Nota Fiscal Electrônica (NFe), has been in operation since 2007 and is mandatory for most companies. It includes strict validation by the Treasury Department.
Argentina: In Argentina, the Electronic Invoice is mandatory for a wide range of sectors, and its control is managed by the Federal Administration of Public Revenues (AFIP).
Chile has implemented a mandatory electronic invoicing system for all businesses, known as Factura Electrónica or Sistema de Facturación Electrónica (SII), managed by the Servicio de Impuestos Internos.
Colombia The electronic invoicing system in Colombia is mandatory for many businesses and is managed by the Dirección de Impuestos y Aduanas Nacionales (DIAN).
Peru: Electronic invoicing is mandatory for companies in certain sectors and is managed by the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT).
Uruguay: The electronic invoicing system in Uruguay, known as Comprobante Fiscal Electrónico (CFE), is mandatory for most businesses and is administered by the Dirección General Impositiva (DGI).
Ecuador: has implemented its electronic invoicing system, Factura Electrónica, managed by the Servicio de Rentas Internas (SRI), and it is mandatory for various categories of taxpayers.
India: introduced mandatory electronic invoicing for large companies in 2020, with a system managed by the Goods and Services Tax Network (GSTN).
China: has been gradually implementing its electronic invoicing system, known as Electronic Fapiao, across different regions and sectors.
Saudi Arabia: is implementing an electronic invoicing system called the Zakat, Tax, and Customs Authority (ZATCA), which became mandatory for businesses in two phases, the first of which began in 2021.
United Arab Emirates: While not yet mandatory nationwide, the UAE is progressing in the implementation of electronic invoicing systems through the Federal Tax Authority (FTA).
South Africa: is in the process of studying the implementation of electronic invoicing to improve tax control and reduce fraud.
Although these systems aim to improve fiscal transparency and reduce fraud, they present several challenges for companies:
Initial Costs: Implementing an electronic invoicing system involves significant upfront costs, especially in terms of technology, but also in training and adapting processes.
Regulatory Compliance: Each country has its own regulations, and companies operating in multiple jurisdictions may face difficulties keeping up with the various regulations and technical requirements.
Integration with Existing Systems: Many companies already have enterprise resource planning (ERP) and accounting processes in place. Integrating the new electronic invoicing system with these processes can be complex and costly.
Maintenance and Updates: Electronic invoicing systems require continuous maintenance to ensure they comply with frequent legal and technical updates introduced by tax authorities.
We know that implementing an electronic invoicing system is extremely complex. Our goal is always to help you by simplifying this process and providing you with a solution tailored to the needs of each country and regulation.
Clients from all over the world trust Gespet for managing their businesses, and this is a big challenge for us. We are working hard to integrate electronic invoicing options specific to different countries/regions, and we will be incorporating them progressively.
We will keep you informed as we include new ones.
