The Road to E-Invoicing Mandate in the United States – Part One

• The absence of a nationwide mandate for e-invoicing in the United States is a notable characteristic as technology advances and global commerce evolves.
• Unlike several nations worldwide, the U.S. does not have a comprehensive requirement for businesses engaged in B2B transactions. This raises intriguing considerations about the factors influencing the nation’s hesitancy to mandate the adoption of digital invoicing practices.
• The U.S. is currently not mandating e-invoices for B2B transactions primarily because tax complexities and the absence of a centralized authority hinder nationwide adoption. Possible VAT implementation in the U.S. appears unlikely due to the complexities of the state and local tax systems.
• The adoption of e-invoicing in the US is anticipated to be more driven by commercial factors than regulatory changes. The U.S. Congress can mandate a framework only for inter-state transactions, and any potential future e-invoicing mandate in the U.S. would likely apply to cross-border transactions.
• The U.S. is the only major economy without a federal VAT or GST system, and sales tax is managed at state and local levels, with complexities arising from various jurisdictions.
• In the business-to-government scenario, government incentives and legislation aim to digitize public procurement through e-invoicing, but in the broader B2B landscape, there are currently no e-invoicing mandates at state or federal levels. Commercial freedom businesses drive the complexity of the current landscape, as the U.S. lacks defined rules for tax invoices and an input tax credit mechanism, leading to divergence in e-invoicing formats, syntaxes, and data subsets.

Source Comarch

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• See also Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological

• Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE

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