Concept Definition
What is tax compliance in e-invoicing?
Tax compliance in e-invoicing refers to the set of obligations businesses must fulfill to ensure invoices meet applicable tax law requirements including correct VAT rates, mandatory fields, valid registration numbers, timely submission, proper archiving, and accurate reporting to tax authorities.
What are the layers of e-invoicing tax compliance?
E-invoicing tax compliance operates at multiple layers:
- Structural compliance: Invoice document is valid XML conforming to the applicable schema (UBL, CII).
- Semantic compliance: Invoice data fields meet EN 16931 or national specification requirements.
- VAT compliance: Correct rates, valid VAT numbers, accurate calculations, proper treatment of reverse charge and exemptions.
- Transmission compliance: Invoice delivered via authorized channel (Peppol AP, PDP, SdI).
- Reporting compliance: Transaction data reported to tax authority within required deadlines.
- Archiving compliance: Invoices retained in compliant format for the statutory period.
Frequently Asked Questions
- Who is responsible for tax compliance on an invoice?
- The issuer of the invoice (normally the supplier) is primarily responsible for invoice compliance. However, the buyer is responsible for verifying the supplier's VAT number and for correctly handling reverse charge obligations. Both parties share responsibility for reporting and archiving.
- How can e-invoicing platforms support tax compliance?
- E-invoicing platforms automate compliance by validating VAT numbers via VIES, applying correct rates from tax tables, enforcing mandatory fields via schema validation, routing via compliant transmission channels, and maintaining compliant archives with audit trails.