e-Reporting and eInvoicing are complementary processes.
By e-Reporting we mean a system for reporting VAT-related information resulting from national and international B2C and B2B transactions.
Some countries such as Italy and Turkey have adopted centralized eInvoicing models where data is exchanged through a government-run Interchange System.
Other countries such as France and Spain, where EDI is already highly developed and widely adopted, have preferred to use a decentralized model where only a summary of the VAT data must be transmitted to the government (e-Reporting).
Generally, e-Reporting makes it possible to interrogate the overall economic activity of a business; it also enables governments to offer businesses the precompilation of their VAT returns (called the Dichiarazione Iva Precompilata in Italy).
This digitalization process offers multiple benefits to both governments and businesses, including:
- reduced VAT evasion;
- simpler and faster administrative and tax procedures;
- centralized access to tax data;
- simpler and faster tax evaluations;
- reduced invoice processing costs;
- credit traceability and
- shorter government payment cycles.
More and more countries are requiring mandatory e-Reporting to improve control over VAT revenues and accelerate the reporting process by taxpayers to tax authorities.
The challenge is not only to be compliant with national and foreign regulations, but also to optimize internal management:
1. managing multiple suppliers from – and across – all the countries involved,
2. managing and fulfilling all incoming and outgoing electronic invoice requirements,
3. managing diverse communication channels and formats in all countries,
4. ensuring simple, reliable data sharing across multiple software applications and different ERP systems.
Adapting your business to e-Reporting
Implementing and maintaining tax-and-reporting compliance with multiple international eInvoicing and e-Reporting regulations and systems becomes more complex as the requirements of different countries increase.
The move to regulated electronic invoicing and VAT and tax reporting is spreading rapidly around the world.
The real-time data it generates offers companies the opportunity to manage their businesses more effectively.
In conclusion, companies need appropriate and always-compliant tools to tackle the industry-specific intersecting factors created between:
- trade in different international markets;
- the complexity of business;
- regulatory evolution.
How do I comply with e-Reporting?
The Comply platform lets you cross compliance off your list of problems.
We take care of keeping abreast of changes and regulations regarding eInvoicing and the various reporting typologies in the different countries in which you operate.
Comply with regional, national, and international regulations, and automate reporting – both internally and externally.
We automatically adapt the platform’s functionality for the countries you do business with.
Comply empowers accountants and CFOs to comply effortlessly and adapt to new regulations, platforms, and technologies – as soon as they become available.