July 9, 2021 Tradeshift Editorial Team
In today’s business environment, understanding compliance regarding invoicing is essential for success. But, with compliance regulations changing and varying for each country, how can organizations ensure they remain compliant with their business practices? What’s more, how does compliance affect an organizations’ ability to succeed? Below we break down the complex topic of invoicing compliance and offer advice for how you can ensure your operations are compliant and running smoothly.
So, what do you need to include on an invoice to remain compliant? The short answer is it depends on the invoice. Typically, invoices need to include the name of the sender and the receiver, an address, and the itemized receipt of goods or services. However, as your invoices become more complex, so does the information that needs to be listed. As a general rule of thumb, your invoices (especially your e-invoices) need to have the following four things to be compliant:
In today’s environment, businesses have to change how they use invoices. Companies are moving away from traditional paper invoices, and the new trend seems to be digital, or e-invoicing. There are many inherent benefits of using e-invoicing. A few key benefits include shorter processing times, easier storage and organization, and a reduction in the amount of paper that AP professionals need to sift through. But, there is also a great benefit from simply adopting a digital platform that supports your trading needs.
After the impact of the pandemic on work, organizations realized the need for digital tools that support virtual work. Having a digital trade platform not only enabled businesses to continue operations virtually but also helped companies to better address and prepare for disruptions to their supply chain. At Tradeshift, we encourage organizations to embrace digital tools and platforms to expand their operations, increase organizational resiliency, and ensure regulatory requirements. We run a digital platform that can help you run compliant payables and payment processes quickly and accurately.
Tax compliance is the laws and regulations associated with sales or value-added tax (VAT) that buyers and suppliers must adhere to. Similarly, e-invoicing compliance refers to the laws and regulations that suppliers and buyers must comply with when sending and receiving electronic invoices. While these two forms of compliance are very similar, each has its own unique requirements that organizations must keep in mind. Failure to ensure compliance could result in fines, fees, barriers to production, or a halt to your cash flow. Businesses need to ensure compliance not only for regulatory reasons but also to ensure that their business operations can operate efficiently and effectively.
When it comes to compliance, things are always changing. Countries pass new codes and restrictions that organizations need to adhere to, and often these regulations can vary greatly from country to country. It can be overwhelming and time-consuming for supply chain professionals to try and keep up with these changes. But, ensuring that your team has the most updated information regarding compliance is crucial to keep your operations running. Due to our strategic partnership with compliance specialists like Sovos Trustweaver, Tradeshift can help to inform you of these changes and ensure your team is prepared for the future.
Partnered with Sovos, Tradeshift helps you to ensure your supply chains and business operations are compliant and running smoothly. Our software is built for the evolving and complex modern tax landscape and is customized to support your team where you need it most. Within our Tradeshift Pay™ product suite, we tackle compliance across two areas:
The best solution is to rely on the efforts of all parties. With support from our Tradeshift Pay™ solution, our team of professionals provides several ways to enable, encourage, and help your organization enforce compliant e-invoicing. Tradeshift places compliance in your hands, granting you access to the tools and resources you need to create an efficient business model.
Tradeshift has a proven track record of helping organizations to create resilient, compliant, and reliable business practices. Our software solutions help you reach your business goals by:
Compliance, while it is a tricky subject, doesn’t need to be the reason you lose sleep at night. By setting up the right foundations and relying on the right set of tools and resources, you can ensure your team stays ahead of the curve and is informed on the latest compliance requirements. Tradeshift can help you to take charge of compliance in your organization by equipping you with the digital platform you need to streamline your transactions.