A global patchwork of e-invoicing regulations

September 26, 2011  |  Electronic Invoicing, Publications

We read an interesting article for you on SearchManufacturingERP.com, named: “Manufacturers face global patchwork of e-invoicing regulations”. It shows the widening gap in e-invoicing legislation between Latin America and Europe. As the original article contains almost 1.300 words, we created a summary using quotes from the contributors:

Tax compliant e-invoicing
“One of the ways the value-added tax works is the companies are sort of duty-bound to calculate the tax and pay the right amount. But the government doesn’t always trust them. The invoice — that’s the key the VAT authority uses to audit.”
Chris Hayes, senior product marketing manager Sterling Commerce.

“In many countries around the world, you couldn’t replace a paper-based invoice with an electronic one and have that be the basis for compliance with the tax system. The situation began to change in 2001 when the European Union (EU) passed its first “dematerialization” regulations allowing e-invoicing. Adoption has been mixed. There are a number of companies that jumped on this right away. But overall, half the companies doing business in Europe have done it, and the other half have not.”
Steve Keifer, vice president of product and industry marketing at GXS

Electronic invoicing in Brazil
“The document flow is elaborate. Upon approving the initial submission, the government returns an official NF-e file to the manufacturer, and the recipient of the goods gets an email copy. The file is also converted to a human-readable, printed document that must accompany the shipment. At any point along the route, police or custom officials can ask to scan the barcode.

The government authorities use mobile devices to access the Web services. It is literally possible for a truck to be stopped on the highway. It’s hard to get around the regulations, because the government can automatically verify compliance.”
Glenn Johnson, senior vice president at Magic Software Enterprises

Electronic invoicing in Mexico
Applicants are required to get a “folio” number from the government and file a monthly report , though this year the government made compliance easier by allowing digital signatures and real-time processing of tax stamps to attach to shipments.”
Steve Keifer, vice president of product and industry marketing at GXS

Electronic invoicing in Argentina
Argentina is coming on strong. Argentina’s system directs companies to multiple websites that can be quirky or fail. So Crossgate’s logic defaults to contingency rules to avoid such critical errors as incomplete transactions. Unlike Brazil, Argentina doesn’t issue invoice numbers but checks if the numbers are in sequence, he said.
Jason Jones, vice president of consulting of Crossgate (now SAP)

Standardisation and integration
“We would like it if there was a standard way to interface with SAP and Oracle, and each platform is different, though most ERP systems, including lower- or middle-tier products, have direct integration to cloud services or middleware for developing it. They all have some way of allowing you to extract information in a structured file and convert it to EDI or XML. When you go down-market, it’s likely to be one option instead of three or four.”
Steve Keifer, vice president of product and industry marketing at GXS

Service providers are the way to go
Don’t under any circumstance attempt to custom develop solutions. There are plenty of e-invoicing, e-signature and other providers who can solve the problem for you without you having to investigate the detailed rules. Scale is important, so go to a large global provider or, if you are locally focused, providers in each of the countries where you operate.”
Duncan Jones, principle analyst at Forrester Research Inc


1 Comment


  1. I was curious if you ever thought of changing the page layout of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or 2 pictures. Maybe you could space it out better?

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