Electronic invoicing requirements currently being enrolled in many European countries are part of a broader tax compliance reform. Typically, e-invoicing comes together with the development of real-time tax and transaction monitoring that allows tax authorities to constantly oversee businesses’ activities.
In order to make real-time tax compliance happen, countries must make a choice regarding the digital infrastructure and protocols, such as the widespread Standard-Audit File-Tax (SAF-T) protocol. Normally, e-invoicing is adopted together with Continuous Transaction Control or CTC. These solutions allow for easy tracing of each transaction.
Source 1stopvat