Essential preparations for e-invoicing compliance

E-invoicing has evolved into a critical global tax compliance requirement, driven by the need for greater tax transparency and enabled by digital technologies. It is no longer just about VAT reporting – it is about aligning the end-to-end compliance process with e-invoicing mandates that demand real-time data exchange and systems integration.

E-invoicing is coming – what can businesses do to ensure global tax compliance?

While its roots trace back to Electronic Data interchange (EDI) in the 1960’s, the first large scale adoption of e-invoicing took place in Latin America in the early 2000s – with countries like Brazil, Chile and Mexico leading the mandatory compliance path.  

These countries implemented e-invoicing not just for efficiency but to combat the tax gap and increase real-time financial transparency. Their success set the stage for the global shift we are seeing today, as governments worldwide recognize the potential of Continuous Transaction Controls (CTC) to enhance tax accuracy, reporting and revenue.

What started as a regional movement has become a global shift. Latin America may have led the way, but with more than 80 countries already live with mandates – and many more preparing to follow – e-invoicing is becoming a non-negotiable requirement.  

Global businesses now face the challenge of navigating fragmented regulatory landscapes and varying technical standards. Success in this environment requires more than just compliance – it demands strategic readiness and operational agility. Let’s explore some of the most pressing questions businesses must address to prepare for this next era of digital compliance.

What e-invoicing regulatory requirements and legislation will come into force regarding e-invoicing in 2025?

The global momentum toward e-invoicing shows no sign of slowing down. While Latin America continues the final stages of adoption in the remaining jurisdictions, the established e-invoicing mandates keep evolving expanding their scope. In Europe, 2025 marks a pivotal year, with Germany mandating the receipt of standardized, structured e-invoices – a move that sets the stage for broader adoption across the region.

Poland, Belgium, and France are set to implement e-invoicing by 2026. Meanwhile, the European Commission’s VAT in the Digital Age (ViDA) proposal aims to create a more harmonized framework for cross-border e-invoicing within the European Union.

E-invoicing adoption is not limited to these regions. In the Middle East, Saudi Arabia has launched a phased e-invoicing mandate, and we are seeing a similar trend in countries across Africa and Asia. E-invoicing has indeed become a key focus in the field of global tax compliance.

For multinational companies, keeping pace with these evolving mandates requires a proactive, globally coordinated strategy. It is not just about preparing for one country’s regulations – it’s about building scalable, adaptable processes, selecting the right solution and enhancing the business’ e-invoicing compliance operations to evolve alongside implementation of requirements worldwide.

How does e-invoicing impact cross-border transactions and VAT reporting?

Cross-border trade introduces an additional layer of complexity when it comes to e-invoicing compliance. Disparities between countries’ e-invoicing requirements – or the lack thereof – can lead to data mismatches, reporting errors, and compliance risks.

Take the example of a business based in a country where e-invoicing is mandatory; this business may issue an e-invoice to a customer located in a jurisdiction where e-invoicing is not required. By consequence, the customer may not yet have the capacity to receive structured electronic invoices. This misalignment can cause processing delays, reconciliation challenges, and VAT reporting inaccuracies.

Now live, ViDA is a step forward toward mitigating these issues within the EU, but globally, the lack of standardization remains a significant challenge. To address this, businesses need a robust technology infrastructure, a strong tax data management strategy, and well-defined processes to manage varying formats or schemas, connectivity protocols, and validation requirements across jurisdictions.

What are the best practices for integrating e-invoicing compliance systems to existing ERP software?

For global businesses, seamless e-invoicing integration goes beyond technical implementation – it’s about aligning compliance with operational efficiency and strategic growth.

The integration process should encompass end-to-end transactional flows. It is essential to prioritize functionality that enables error detection and correction before data reaches tax authorities, particularly in tax models with continuous transaction controls, minimizing the risk of rejected invoices and compliance penalties.

Incorporating e-invoicing systems into existing ERP software requires careful planning and businesses must question whether the risk of moving away from a working system to a global e-invoicing network is worth it. The scope of the e-invoicing solution is entirely dependent on the size of a business and what territories they trade with. As they continue to grow, they will require a more sophisticated system in place to handle a large volume of transactional data.

Partnering with reputable software service providers, who have a wealth of experience and expert knowledge, can help ensure any e-invoicing integration projects are completed with minimal disruption. These software service providers can streamline the integration process as they often offer APIs designed to work with popular ERP platforms such as SAP or Oracle. Additionally, these partnerships also support any ongoing maintenance work and updates to the solution, helping businesses adapt and remain agile to regulatory changes without disrupting their operations.  

Why is clean Master Data – and a Master Data Strategy – essential for global e-invoicing compliance?

Master data quality is the foundation of effective e-invoicing compliance – but clean data alone isn’t enough. Businesses must establish a comprehensive master data strategy, including tax data management, to ensure accuracy, consistency, and readiness across global operations. The strategy should define clear ownership, governance processes, and continuous data validation to minimize risk and support global tax compliance with evolving e-invoicing mandates worldwide.

The cost of non-compliance due to poor data quality can be steep, leading to rejection of e-invoices, delayed payments, and increased audit risk. These issues can quickly escalate to financial penalties, strained business relationships and disruption in cash flow – not to mention the internal operational costs of investigating and correcting errors.

A well-defined master data strategy helps mitigate these risks by:

• Establishing data ownership: clearly assigning responsibility for data accuracy across tax, finance and IT teams.
• Implementing data governance: creating policies and processes for regular audits, standardization, and updates.
• Enabling system integration: ensuring master data aligns across ERP systems and e-invoicing platforms, reducing manual intervention.
• Supporting scalability: building a foundation that can adapt to new markets and evolving compliance requirements without overhauling existing systems.

By prioritizing master data quality and tax data management strategy, businesses can not only achieve higher compliance rates but also streamline operations, reduce costs, and position themselves for growth in an increasingly regulated global environment.

Who owns e-invoicing compliance within an organization and why is cross-functional collaboration key?

As e-invoicing becomes a global tax compliance standard, one of the biggest challenges businesses faces is determining ownership of the process. E-invoicing is not just a tax requirement, it is a complex blend of compliance, technology and financial operations. That is why no single department can manage it in isolation.

Ownership often falls across three key functions:

• Tax and finance: ensures an e-invoicing solution meets regulatory requirements and aligns with local legislation.
• IT & technology: manages system integration, systems roadmaps, data accuracy, and real-time VAT reporting functionality.
• Procurement and accounts payable/receivable: oversee transaction data quality and ensure smooth invoice processing based on internal business requirements.

Other functions within the organization might need to be considered, dependent on the scope of the e-invoicing mandate of a given jurisdiction.

For a successful e-invoicing implementation and ongoing compliance, cross-functional collaboration is essential. A coordinated approach helps avoid silos, ensuring master data strategy, system configurations, and compliance efforts align globally, while staying adaptable to local mandates.

Establishing a dedicated e-invoicing governance team with clear roles, shared responsibilities, and ongoing communication between tax, finance, and IT, ensures businesses can navigate evolving regulations efficiently and minimize the risk of non-compliance.