However, our real-time reporting system easily integrates with e-invoicing standards such as the EN 16931 standard. Summitto develops real-time reporting software and does not provide an e-invoicing solution. How can summitto’s real-time reporting system facilitate e-invoicing ![]() Furthermore, the usage of e-invoicing reduces the cost of paper which even has a positive effect on the environment. For example, it will allow businesses to automate a wide variety of business processes which increases efficiency and enables employees to focus on value added tasks. This can make national governments hesitant to implement mandatory B2B e-invoicing.Įven though there are some hurdles to combine real-time reporting and e-invoicing, the long term benefits for businesses can be enormous. Another reason, which only applies to EU Member States, is that the EU VAT Directive does not allow for mandatory B2B e-invoicing without the derogation of article 218 and 232. If mandatory e-invoicing would be introduced, this would mean that many companies need to make drastic changes to their business processes. One reason is that only a few countries in the world have a high e-invoicing adoption rate. There are several reasons for governments to take this route. Combining real-time reporting and e-invoicingĪs stated above, real-time reporting can be easily implemented without also introducing mandatory e-invoicing. Adopting a real-time reporting system has many advantages: discrepancies are detected faster, tax procedures are optimised, and tax authorities can better monitor national economic trends. The reason behind that is simple: as long as the invoices’ data are reported to the TA, the tax administration will acquire the full overview of invoice information, thus allowing the tax authority to track discrepancies and detect fraudsters. Real-time reporting systems do not require an implementation alongside e-invoicing. Still, the idea is the same: reducing VAT fraud thanks to the transmission of VAT data in real-time or near real-time. Real-time reporting has several names and forms of implementation such as continuous transaction controls and transaction based reporting. Source: summitto The many faces of real-time reporting In the EU, e-invoicing is already mandatory for all B2G transactions. The format requirements allow e-invoices to be processed automatically by accounting software and systems. Whereas digital invoices are mainly used for their ease of processing, archiving and are sparing paper, e-invoices serve a slightly different purpose. ![]() A digital invoice can take many forms such as PDF, Word Document, scanned paper invoice, and is easily readable by humans, but not by machine. A digital invoice is just a dematerialised invoice, not subjected to format requirements as e-invoices are. The art of invoicing in a digital worldįirst and foremost, e-invoicing should not be mistaken with ‘digital’ invoices. Furthermore, we explain how summitto’s real-time reporting system can be integrated with open standards such as the EN16931 e-invoicing standard and the Peppol network. ![]() In the following, we will explain the difference between real-time reporting and e-invoicing and how they relate to each other. Although both mechanisms can be implemented hand-in-hand, they can also be successful on their own. While e-invoicing refers to the exchange of an invoice in a structured, computer readable data format, allowing its automatic and electronic processing real-time reporting refers to the reporting of relevant invoice data to the tax authority. Often confused, e-invoicing and real-time reporting mechanisms are, nonetheless, distinct and entailing specific services. The relationship between real-time reporting and e-invoicing
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