Businesses in the EU face an increasingly complicated tax-compliance environment, especially when it comes to the way they manage invoices. Many of the most confusing changes revolve around an emerging standard called “invoice clearance,” which requires businesses to issue invoices in a machine-readable format and have them validated by tax administrators or outsourced providers, before sending them on to customers.
The requirements for complying with mandatory e-invoicing vary by jurisdiction, and businesses with cross-border operations need to determine how to address this patchwork of obligations effectively. It can seem like an overwhelming task.
With that in mind, I want to clarify some basic features of the landscape, including how an invoice clearance model operates, how e-invoicing formats differ across Europe, and what changes businesses should expect from different EU countries over the next few years.
Source Bloombergtax
