Everyone is talking about E-Invoicing. But what exactly is electronic invoicing? Electronic invoices, which are in accordance with the European standard for electronic invoicing are a great start. Digitized invoicing promises administrative burden savings compared to paper-based invoicing processes.
But why not take it to a next level?
Remember our Receipt solution? Well, our all-Invoice solution brings the same mechanism and benefits as Receipt but to a world of Invoicing. All invoices have their own unique identifier based on which the invoices’ digital twin is recorded in the central database of the Tax revenue authority.
Why would you record the invoices to tax revenue authority?
Simply put…. We want to eliminate tax frauds and decrease the VAT gap.
More complexly… We are referring to businesses that are established for the sole purpose of simulating operations with the objective of generating tax credits, obtaining undue refunds from fictitious favorable balances, and likewise reducing the tax bases not only of the VAT but also of the income tax. These false invoices are not only used for tax purposes, but for other reasons such as justifying irregular purchases, laundering of assets operations and other cases of corruption in public bids, payment of bribes, and in extreme cases economic support to organized crime and terrorism.
With our solution every company invoice will have its digital twin with complete detail to items, prices, VAT amount displayed and securely stored in central database of tax administration. A centralized information system and a unique invoice identifier will prevent TAX frauds related to invoices, while increasing the effectiveness of tax inspections.
Benefit of all-Invoice is automatic VAT report generated by Tax Authority, all necessary data are stored in central database under financial administration control.
The introduction of the all-Invoice mechanism is expected to increase tax collection by at least 5% (based on data provided by tax authorities in the relevant EU countries after the introduction of similar solutions) but we believe it’s much more than that.