Shawn Bradley 
Electronic invoicing has helped to transform the way that businesses handle their invoicing process. Where once companies relied on paper invoices – printed and mailed manually – now they can simplify the entire process into a few simple clicks.
There are many benefits to adopting e-invoicing within a business, but one of the biggest is the ability to operate in the international market. An increasing number of countries now mandate the use of e-invoices, so it is essential for companies planning to trade internationally to consider e-invoicing compliance requirements.
While the specific rules and regulations vary from country to country – making it important to double check on each market you plan on entering – there are four key areas to consider. The main requirements companies need to meet when handling e-invoices are:
Adherence To Format And Content Standards
The most basic part of e-invoicing compliance is ensuring that all invoices adhere to the standardized formats set by regulatory authorities. This standardization is essential for local consistency and interoperability.
While different jurisdictions require specific formats, there are a few common formats that are particularly notable. XML, UBL (Universal Business Language) and EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) are all regularly used.
That might seem like a lot of complication, but e-invoicing software is designed to handle the heavy lifting. Proper platforms can automatically format invoices into the correct standard for many countries, saving your team the hassle of having to dig into the local regulations.
In addition to the formatting of the e-invoice, different regulations require the inclusion of various specific data fields. For businesses to remain compliant, it is essential to make sure that all required information is properly populated in the e-invoice.
Secure Transmission And Data Integrity
The secure transmission of e-invoices is a major component of meeting compliance requirements, as governments are increasingly concerned with the protection of sensitive information. All e-invoices must be transmitted using secure protocols, with the data properly encrypted during transmission to avoid interception by bad actors.
Businesses must ensure that e-invoices are not subject to unauthorized access and that all sensitive financial information remains confidential and intact.
One common guarantor of authenticity and integrity that regulators mandate is the use of digital signatures or electronic seals. These provide a simple yet effective manner to verify the identity of the sender and ensure that the content of the e-invoice has not been tampered with.
Real-Time Reporting
As countries look to tighten up their fraud prevention policies and tax systems, many have implemented the requirement of submitting e-invoices in real time. In practice, this means that e-invoices must be submitted to the relevant government portals for validation and approval as they are issued.
This allows tax authorities to more effectively monitor transactions, reducing the risk of tax evasion and fraud, as well as improving overall transparency.
Archiving And Retention
Secure invoice storage is another core requirement of compliance, which is far simpler now that we no longer need to rely on paper files and metal filing cabinets. Businesses are required to ensure that their stored invoices are tamper-proof and that their integrity is maintained throughout the entire retention period.
E-invoicing software offers encryption, access controls, and audit trails that protect against any unauthorized access or alterations. In this way, businesses can rest assured that all their e-invoices remain unaltered and valid in line with their compliance duties.
The exact length of the retention period for invoices varies between jurisdictions, but typically, companies are required to keep them on file for five to ten years. Always check the requirements and err on the side of caution when it comes to the archival of e-invoices.
Providing a proper audit trail and complying with all relevant regulatory requirements in the countries where your business trades are essential for operating effectively on the international stage.
