Some62percentofCFOsatbest-in-classorganizations identify compliance and risk mitigation among their top priorities, according to The Hackett Group. 4 In the world of e-invoicing, business culture and government mandates are the two main drivers behind the current overarching trends in invoice processing: post-audit and clearance. Post-audit compliance Traditionally, scrutiny when it comes to invoices has been applied after the fact. Often, long after. The length of time that businesses need to retain invoices and related information changes the world over, but invariably Clearance compliance To avoid falling foul of the tax gap and losing out on revenue, a growing number of countries are now moving to a pre-audit model when it comes to control over invoices. This most often involves a Supplier having to create every single invoice they send via a government-sponsored online portal in order to meet the tax authorities’ requirements, before then sending them over to their Buyer to get paid. The person purchasing the goods is legally required to make sure this is done at the point of sourcing to avoid a serious fine, so while it is the Supplier who must ensure they stay in line with the law, it also affects the Buyer. Tungsten Network satisfies the legal requirements as well as running additional validations to smooth the invoicing process. Additional guidelines The complexity around compliance arises not only from the question of when businesses need to get Keeping up with the demands of global business can be a challenge, as economies, trends and governments change and falter. THE COMPLEXITIES OF COMPLIANCE reaches several years. To make sure they comply with the legal stipulations, businesses make use of extensive archives and complex filing systems. A mistake here can be highly expensive,soperfectexecutionisvital. The tax gap The traditional model requires businessestobeorganisedandhonest when it comes to invoicing records, however this can lead to problems with unmonitored and unregistered businesses who don’t fulfil their tax requirements and contribute to the tax gap.This is the difference between the amount of tax that should, in theory,becollectedbyagovernment’s revenues and customs body, against what is actually collected.