Global e-Invoice Requirements

Electronic tax invoicing (e-Invoice) is the sending, receipt and storage of invoices in electronic format without the use of paper-based invoices as tax originals. For e-invoices to be recognized on an equivalent audit basis as paper Invoices for value-added tax (VAT) or similar indirect taxes, most countries require e-Invoices to meet the requirements for content, authenticity, integrity, and archiving. Failure to meet such requirements can lead to sanctions, including fines and the possibility of buyers having to repay already deducted VAT.

Implementing a cost-effective tax compliant e-Invoicing system requires a holistic approach that considers technical, process, and legal aspects of a corporation's invoice processes throughout the relevant disciplines in the company. However, the approach must be driven by a tax perspective, which means first deciding on the desired outcome of an audit process and then designing the system from the resulting requirements.

For global programs, country-based invoicing rules can be configured. When activating the country-based invoice rules, a list of suggested rule settings is populated in the SAP Business Network. You may modify and save these rule settings based on your business needs and requirements.

Remember that these rules do not represent or guarantee a certification from local authorities. Make sure to review each rule with your local accounting or legal department. For example, you may have categories of products or services that need to comply with special local requirements.