VATupdate Newsletter Week 36 2026

CARS

Earlier today, I attended an event where we talked about e-invoicing. At some point, someone made a remark that choosing the right e-invoicing partner or technology is a bit like buying a new car.

And I thought: that is actually a pretty good comparison.

Before buying a car, you first need to determine what type of car you need. An SUV? A pick-up truck? A sports car? Or perhaps just a simple second-hand car that reliably gets you from A to B?

The biggest mistake you can make is buying a car simply because you like it, without checking whether it is actually suitable for the roads you want to drive on.

You don’t want to discover afterwards that your beautiful sports car isn’t particularly useful when most of your journey consists of driving through muddy fields. Or that your new car needs a particular type of fuel that you don’t have – or simply can’t get.

And then there are the electric cars that are advertised as being able to drive 800 kilometres on a single charge. Sounds impressive. Until you discover that, under real-world conditions, you need to stop every 200 kilometres to recharge.

But there is more.

Does it fit in your garage?
Does it have enough luggage space?
Does it come with the accessories you need?
And, perhaps more importantly, are all those accessories actually necessary? Do you really need that third blinking light?

And then there is the APK.

In the Netherlands, a car needs to pass its periodic roadworthiness test before you can legally drive it on public roads. It doesn’t matter how beautiful the car is, how fast it can go, or how many gadgets it has. If it doesn’t meet the requirements, it simply doesn’t belong on the road.

And perhaps that is where the comparison with e-invoicing becomes particularly interesting.

When choosing an e-invoicing solution, it is tempting to focus on the technology: the interface, the features, the integrations, the promises about automation, and perhaps even the impressive-looking dashboard.

But the first question should be much more fundamental: What roads do you actually need to drive on?

Which countries are involved?
Which invoicing requirements apply?
Which formats and networks do you need to support?
Does the solution integrate with your ERP and accounting systems?
Can it handle the volumes and exceptions that occur in the real world?

And, of course, there is the VAT equivalent of the APK: Does it comply with the rules?

With the EU moving towards more digital reporting and e-invoicing under ViDA, and individual Member States introducing or expanding their own e-invoicing requirements, compliance is not an optional accessory.

A solution may look fantastic. It may be fast, sophisticated and packed with features. But if it cannot produce the right invoice, transmit it through the required channel, capture the necessary data, or support the VAT reporting obligations that come with it, you may have bought a very expensive car that isn’t allowed on the road.

So, before choosing your e-invoicing “car”, don’t start by asking: “Which one do I like best?”

Start by asking: “Where do I need to go?”

Once you know that, you can decide whether you need an SUV, a sports car, an electric vehicle – or just something that reliably gets you from A to B.

And whatever you choose, make sure it passes the VAT APK. Because the last thing you want is to discover that your shiny new e-invoicing solution isn’t roadworthy.

Anyone interested in more VAT news, developments and occasional philosophical reflections on the strange similarities between tax law and everyday life can subscribe to the weekly VATupdate newsletter at VATupdate.com

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

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