E-Invoicing - Continuous Transaction Controls (CTC): A global strategy is crucial

2 June 2023

Written by: Ben Sullivan, Global Sales Executive, Pagero

and Stephan Delisle, Global Sales Executive, Thomson Reuters

Over recent years, the number of governments introducing?e-invoicing?and continuous transaction controls (CTC) mandates has increased worldwide.?

CTC?e-invoicing?compliance has become a world of evolving complexity for multinational organisations. Keeping up-to-date and compliant with the constant changes takes more effort and resources than Tax, and IT teams can spare.?The rise in CTC?e-invoicing?mandates?poses significant challenges for organisations, and getting it wrong is not an option.

The drive towards CTC obligations & finance automation

Due to the success of?e-invoicing?regulation introduced in Chile in 2002, more than 80 governments worldwide have since followed suit and introduced some?e-invoicing?or CTC obligations, with many more expected to do so over the coming years. There is no sign of things slowing down, with the existing obligations constantly being changed and revised.?

As other governments adopt similar strategies to reduce the VAT gap and digitalisation of their economies, and as technology advances, the focus isn’t only on compliance. There is a big emphasis on finance automation across order-to-cash (O2C) & purchase-to-pay (P2P) processes.?

The European Commission (EC) recently published its?VAT in the Digital Age (VIDA)?proposal , which will drive even more automation, digitalisation and standardisation across CTC among the Member States. The European Commission aims to encourage businesses to digitalise their everyday processes.?

Once organisations fall under the scope of these mandates, non-compliance is not an option. Governments will impose penalties on those taxpayers that do not meet their obligations. Therefore organisations have no choice but to find a compliant solution to meet the requirements.?

“It’s not just about becoming compliant; it’s about staying compliant.” Nazar Paradivskyy,?VP of Regulatory Affairs,?Pagero

Start as you mean to go on

Typically global, multi-national organisations have tackled these obligations reactively and resolved them country by country by implementing disconnected solutions and processes. Before they know it, organisations have ended up in a spaghetti of software, misaligned data and layered, often overlapping processes with lot of manual workaround fixing regional solutions limitation.?

It hasn’t been until organisations realise the overall cost of sourcing these solutions, having differerent GUI/menu/management reports, managing multiple providers or the IT function gets fed up with building multiple connections that the penny drops, and this becomes a priority at a global level to have a central unique E-Invoicing provider with a single universal format, menu, GUI and management reports for efficiency gain, cost minimisation and optimal risk mitigation.

Understanding the overall cost of sourcing, implementing and managing multiple compliance service providers across your organisation has never been more critical.?

With so many existing and upcoming mandates on the horizon, it no longer makes sense to manage these mandates locally or with a reactionary approach. A global strategy is now the only way forward for large multinationals.?

This presents an opportunity for businesses to consider the best way for their teams to operate at maximum output with confidence, complying with international CTC?e-invoicing?obligations in the most efficient way possible so that there are time and resources to leverage strategically across the organisation.

How Thomson Reuters' ONESOURCE E-Invoicing (Powered by Pagero) can help with a global strategic approach

By choosing ONESOURCE E-Invoicing (Powered by Pagero) as your global CTC partner, you will:

• Stay compliant with?local e-invoicing and CTC regulations in over 70+ countries.
• Have compliance expertise and knowledge embedded within the technology.
• Gain equal commitment to finance automation and compliance across O2C and P2P in a single process as opposed to automation and compliance being completely disconnected – a unique approach in the market.
• Have the only true single global end-to-end Indirect Tax process in your international operations by adding ONESOURCE Determination (Tax Engine) and ONESOURCE Indirect Compliance for E-reporting and VAT filing, some of these solutions covering over 200 countries and territories.

Thomson Reuters' ONESOURCE E-Invoicing (Powered by Pagero) is ERP agnostic and will limit the changes across your organisation due to its networked and universal format approach. When there are new regulations or modifications to existing ones, we monitor these, take care of the heavy lifting, and convert the data into the format required by government hubs.

With one master agreement, you can easily switch on countries as the mandates go live and add any other advanced content enabled Thomson Reuters' ONESOURCE Tax solutions worldwide. With a dedicated service team assigned to your organisation, we will work closely with your IT & Tax teams keeping you compliant globally in most areas of your indirect tax function.?

While 2023 is used by organisations in fixing e-invoicing issue from local providers and adding new jurisdictions such as KSA and Japan, most organisations are now considering a global approach and the ones operating in France, Spain, Poland and Belgium will need technology in place in 2024 to meet regulation. Having a central easy to manage global e-invoicing solution does make lot of sense to such multi-jurisdictional organisations.

If you want to discuss how we can help you get set up on the Thomson Reuters' ONESOURCE E-invoicing (Powered by Pagero) network for your global operation, please reach out to us. We expect high demand for this new solution needed by large complex organisations worldwide in line with volume of new jurisdictional e-invoicing regulation starting; therefore choosing your global unique technology vendor early will secure the e-invoicing technology and implementation to meet each jurisdictional regulatory deadline on time.

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