The Digital Era:

Understanding Compliance and Total Automation

Introduction

TAs (Tax Authorities) perform significant

investments for e-Invoicing adoption on a country
level to support digital business transformation…

Digital Era
The actors
and ….Large Companies perform significant

Compliance investments for its adoption due to compliance

and to drive full integration in its value chain on
their journey to digital business transformation.
Introduction

Opportunities on Total Automation driven by cost efficiency

→ Reducing processing days from 45 to 30

© 2023 Business Payments Coalition → eInvoicing + ePayment from 50% cost reduction

→ 50% cost reduction from paper to eInvoicing

2017: Business Case E-Invoicing / E-Billing
1 Compliance in the Digital Era
 Compliance in the Digital Era – Taxpayer Vision

360º Vision for Global e-Invoicing Initiatives

How large-scale e-Invoicing implementation is approached

Receive orders

Send orders Customer pays

ACCOUNTS ACCOUNTS
Tax Invoice PAYABLE RECEIVABLE Invoice Tax
Authorities Receiving Large Enterprise sending Authorities

Supplier Deliver
gets paid goods
Compliance in the Digital Era – TA Vision

The Digital Era

Digital
Transforma
tion
Stimulate
economic
From a government perspective, e-invoicing activity

initiatives serve as a strategic tool to promote: Digital Era

Advance Enhance
Sustainability Fiscal
Goals Foster Governance
innovation
in the
public and
private
sectors.
Compliance in the Digital Era – Benefits

Benefits

Improved Cost Reduction:

Compliance: Paperless Processes
Faster Dispute Resolution Time Efficiency
Real time invoice to TA

Automation:
Improved Auditing: End to End automatic data generation
Quicker and accurate Standardization & Zero Human Intervention
audits Improved Accuracy
Interoperability

Improved Analytics: Improved Cash Flow Planning:

Faster Payments
Better tax planning Sustainability Payment Confirmations
Quick trends identified
Payment Acceptance

Transparency: Compliance:
Reduces Information gap Digital transformation Real-time Reporting
TA/TP improved transparency

Tax Authorities Mutual Taxpayers

2 Building a Comprehensive Business and
Compliance Framework
eInvoicing Models Impact

Foundation for CTC Existing CTC models

Interoperability facilitates Buyers and Sellers may exchange data with the tax administration in real time using a tax portal,
post-Audit SAF-T reporting. their ERP system or via Service Providers.

Source: OECD (2022), Tax Administration 3.0 and Electronic Invoicing: Initial Findings, OECD Publishing, Paris
Source: eInvoicing Models Source
 eInvoicing Models Impact

Large Companies Tax Authorities Mutual

Standar
Benefits Improve Improv Faster
Cost Improv Impr. dization Digital
Automa d Cash Complia ed Transpa Dispute Sustain
reducti ed Analytic & transfor
tion Flow nce Compli rency Resoluti ability
on Planning Auditing s Interop mation
ance on
erability

Interoperabili
Interoper
ability ty

Real-time
Reporting

Clearance

Centralised
Exchange

DCTC
Exchange

High Medium Low

3 A closer look to MENA e-Invoicing models
How TAs and MNEs are taking advantage of them
A closer look to MENA e-Invoicing models

Egypt Tax Authority Obligation

Egyptian Tax Authority – ETA Roll-out in phases started in November 2020 for
Centralized Model large companies, consolidated to all businesses
from April 2023.

ETA – Tax Authority

Administrative procedures Format
Registry in the Egyptian electronic invoicing JSON or XML.
system.

Digital Signature Fiscal Control

UUID code in the invoice.
Mandatory – HSM Token

Invoice Delivery centralized by Tax Authorities

Possibility to use single national format as legal invoice + pdf embedded
Full 360º automation approach
A closer look to MENA e-Invoicing models

Saudi Arabia
Tax Authority Obligation
Clearance model Zakat Tax and Customs Authority (ZATCA). Phased implementation started in January 2023
based on company’s revenue.
ZATCA – Tax
Authority Administrative procedures Format
Clearance model. UBL- XML o PDF with embedded XML.

Digital Signature Archiving

Only Mandatory for B2C e-invoices. Starting from 6 years.
ZATCA crypto stamp for B2B.

Fiscal Control
QR Code + Cryptographic Stamp.

Businesses create electronic invoices with transaction details

 Invoices are sent to the tax authority's system for validation
Approved invoices receive a clearance code for transaction
completion
A closer look to MENA e-Invoicing models

Jordan
Tax Authority Obligation
Clearance model ISTD - Ministry of Finance Income Official roll-out 2024 voluntary compliance
and Sales Tax Department Mandate TBA mid 2024
JoFotara – Tax
Authority
Administrative procedures Format
Clearance model. UBL 2.1 & JSON/XML

Digital Signature Archiving

ISTD signature + QR code Starting from 4 years.

Fiscal Control
QR code signed by the ISTD portal

Businesses create electronic invoices with transaction details.

 Invoices are sent to the tax authority's system for validation.
Approved invoices receive a QR code for transaction completion.
4 Looking Ahead: The Future of Compliance and
Total Automation
The Future of Compliance and Total Automation in MENA

Country e-Invoicing system Date

Saudi Arabia Clearance 2023 – Phase 2

Egypt CTC 2020

Jordan Clearance 2024 - Voluntary

MENA e-Invoicing UAE TBA 2025

Roadmap Qatar TBA TBA

Bahrain TBA – Tender released TBA

Oman TBA – Tender released TBA

Kuwait TBA TBA

Solution Technology to Support Total Automation

Data anywhere

Large Enterprises with a complex application ecosystem

Compliance: eInvoicing generation, declaration, sealed, and archived.

Business AR: eInvoice delivered (any platform, any format) reception confirmed, payment confirmation received.

Business AP: eInvoice received, validated (business rules), integrated, archived, payment remittance delivered.
The Future of Compliance and Total Automation

Tax Authorities

There are
Cultural, VAT
country/region
regulations, practices,
initiatives centered in
and the “momentum”
the value of end-to-
impact the different
end invoice
eInvoicing models
automation (SG,
adopted in the world.
AU+NZ, US, Nordics).

Trends for new

countries adoption
guide them to the
Centralized or DCTCE
model.
The Future of Compliance and Total Automation

Large Companies

USING COMPLIANCE AS CENTRALIZED EINVOICE AR + AP AUTOMATION ON

AN OPPORTUNITY FOR PLATFORM SOLUTION TO TARGET.
END-TO-END REDUCE DEVELOPMENTS
AUTOMATION, NO AND COSTS.
MATTER THE MODEL.

USE OF PAYMENT STATUS BUSINESS CASES FOCUSED

MESSAGES TO IMPROVE ON BOTH BUSINESSES AND
CASHFLOW PLANNING. COMPLIANCE BENEFITS.
The Future of Compliance and Total Automation

Embracing Total Automation in the

Digital Era

The digital era

demands a radical
shift in how
businesses operate.
Embracing total Why Total
automation is the Automation:
key to not only
survive but thrive in
this dynamic
landscape.

• Streamline processes for

maximum efficiency.
• Eliminate bottlenecks and
reduce manual
intervention.
• Ensure precise decision-
making with data-driven
insights.
 The Digital Era: Understanding Compliance and Total Automation

Contact
• Andre Menezes
• [email protected] © EDICOM Capital S.L.