E-Invoicing & Real Time Reporting models demystified

Overview of E-Invoicing Models

The document outlines five global models for electronic invoicing (e-invoicing), each with distinct mechanisms for validation, exchange, and government involvement.

1. Interoperability Model

• Invoices are exchanged via certified service providers (Access Points).
• Common formats enable seamless communication across systems.
• Example: Peppol network.
• No government validation required.

2. Clearance Model

• Invoices must be approved by a government platform before reaching the buyer.
• Tax Authority assigns unique identifiers (e.g., UUID, QR code).
• Ensures fiscal validity and compliance.

3. Centralised Exchange Model

• All invoices are routed through a single government-managed platform.
• The platform validates and forwards invoices to buyers or makes them retrievable.
• Used in countries like Italy, Turkey, Poland, and Romania.

4. Real-Time Reporting Model

• Invoice is sent directly to the buyer.
• Simultaneously, key data is reported to the Tax Authority.
• Government does not approve the invoice but monitors transactions in near real-time.

5. Decentralised CTC and Exchange (DCTCE)

• Combines real-time reporting with decentralized exchange.
• Certified service providers validate and transmit invoices and report data to the Tax Authority.
• Promotes flexibility while maintaining regulatory compliance.

Each model balances standardization, regulation, and technical integration differently, reflecting regional priorities in tax enforcement and digital infrastructure.

Source Amy Vahey

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