What is eInvoicing compliance?

eInvoicing compliance refers to adhering to government-mandated rules for creating, sending, receiving, and storing invoices in a structured, electronic format. These regulations aim to increase tax transparency, reduce fraud, and streamline business transactions.

What is the "soft landing" approach in eInvoicing compliance?

The soft landing approach refers to governments maintaining legal mandate start dates while suspending penalties for a specific period. This allows businesses that demonstrate “compliant intent” (such as having signed contracts with providers) to avoid fines while finalizing their technical implementation, as seen in Belgium and potentially other regions.

What are hybrid invoice formats like ZUGFeRD 2.3?

Hybrid formats contain both a human-readable PDF and a machine-readable XML file embedded within the same document. They bridge the gap between legacy manual AP processes and modern automated reporting, serving as a key standard in countries like Germany and France.

Why are some countries restricting VAT deductibility for non-compliance?

Countries in the Middle East and Africa, such as Israel, Kenya, and Zambia, are using VAT deductibility as an enforcement tool. If a buyer accepts a non-compliant invoice that hasn’t been validated by the government server, they are technically restricted from claiming tax credits, effectively making them police their own suppliers.

How does the UK's 2029 eInvoicing mandate differ from others?

The UK has announced a decentralized 4-corner model, likely using the Peppol network, rather than a centralized government clearance model. This validates Peppol as a viable alternative to government-controlled platforms and aligns the UK with markets like Canada, Australia, and New Zealand.