The year 2022 is shaping up to be a watershed moment in the realm of digital business compliance. To assist firms with their planning, our experts have compiled answers to three frequently asked concerns about e-invoicing compliance in 2022.
Every day, we work with international corporate leaders in tax, finance, and information technology, all of whom are dealing with identical issues. We see CFOs who are unhappy with juggling different service providers in multiple countries, as well as IT departments that must construct and maintain an ever-growing number of formats and connections. Then there are Tax Directors who recognize what’s coming: more mandates, more variety, and until a worldwide solution is discovered, more connections, contracts, and costs… Resulting in even greater frustration!
It’s time to prepare for big changes around e-invoicing compliance in 2022
In 2022, businesses of all sizes and industries must prepare for a pivotal year in e-invoicing compliance. B2B e-invoicing mandates, as well as different B2G mandates, have been implemented in Italy and India over the previous few years. When you add in the first phase of the mandate in Saudi Arabia, things are heating up!
Poland is a hot topic right now, with mandated e-invoicing implementation starting in Q1 2023 and voluntary adoption beginning in 2022.
Furthermore, with Phase 1 of the Saudi Arabia mandate set to be operational at the end of 2021, there is no time to relax. Businesses must prepare for the integration phase, which will begin soon.
France’s decision to postpone from 2023 to 2024 may have been a blessing in disguise, as the French mandate is currently the most confirmed item on the compliance roadmap.
Many experts believe that new legislation will be confirmed in Japan, Belgium, Spain, Australia, Germany, Slovakia, Romania, the Philippines, and other countries in 2022. It is expected that legislation in China will continue to alter as well. We, as always, are hard at work keeping our customers informed.
Most multinationals operate in several, if not all, of these areas, and dealing with the avalanche of legislation and obligations on their own is unfeasible.
Here are three basic questions on e-invoicing mandates and compliance that we are frequently asked:
Are all e-invoicing mandates the same?
No, it’s shocking how many companies still believe this. It’s critical to grasp their differences and where the market is headed.
Mandates in different countries can impact several domains, including B2B, B2G, and B2C, as well as the use of various models. With so many countries currently adopting e-invoicing, it’ll only be a matter of time until you see initiatives introduced in new places, each with their own preferences.
SAF-T reporting was established in Poland five to six years ago, and now there is a push for mandatory e-invoicing for all taxpayers. Other SAF-T-enabled markets will undoubtedly look to follow suit.
Do e-invoicing mandates only apply to outbound invoices?
This is one of the most common urban legends.
While it’s fair to say that everything begins with the sending of invoices, things are swiftly changing. Italy, Turkey, Saudi Arabia, and France are all great examples of markets where inbound invoices are a big deal, whether it’s collecting e-invoices through a government platform, verifying a QR code, or collaborating with a service provider like HubBroker to automate a flow into accounts payable systems. The goal is to lessen the amount of stress your team is under due to increased manual tasks.
Customers are more aware of the requirement for ‘compliance + automation’ in both AP and AR.
Is there an easy, one-off fix?
Regrettably, no; government legislation moves at a breakneck pace. Requirements will shift in the run-up to a mandate. It’s simply a case of what’s next and when?
It’s not just about becoming compliant; it’s about staying compliant.
Now for the good news!
‘One link – global reach’ is HubBroker’s motto.
If you were to ask most IT or tax directors what they want in this area, their answer would be, a standardized solution.
Accessing a single global link isn’t just a want or a goal; it’s a requirement for any global company that wants to do this right without squandering all of its tax, finance, and IT resources for years to come. At HubBroker, we try to achieve this for our consumers.
Plus, we’re more than simply a software company. We are a reliable partner that will keep you informed about everything that is happening in your target markets through our in-house expertise. Not to mention our cutting-edge solutions, which integrate with a variety of platforms.
Schedule a call with one of our experts today to learn more about how we can help your company evolve and prepare for any forthcoming changes.