E-invoicing in Asia | Prepare your documents for new demands
E-invoice is becoming mandatory in Asia
Corporations operating in Asia must be aware that e-invoicing is becoming mandatory. The Asian market for electronic invoice volume is accelerating rapidly. It is expected to be the most promising market regarding growth in invoice volume until 2025.
The use of e-invoicing is pushed by ASEAN
ASEAN, which is the Association of Southeast Asian Nations, is pushing the use of e-invoicing based on the PEPPOL Interoperability framework. PEPPOL enables trading partners to exchange standard-based electronic documents through the PEPPOL network.
The Association of Southeast Asian Nations (ASEAN) consist of the following nations: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
Mandatory e-invoices in India and Vietnam
One of the ASEAN members, Vietnam, originally planned to have electronic invoices made mandatory for all corporations in November 2020. However, due to local businesses' problems applying a compliant e-invoice solution, the deadline has been moved to 1 July 2022.
Countries outside of ASEAN are also developing. In April 2020, India made electronic invoice registration mandatory. The invoice content in India is rich. Due to this, it is expected to clear the way for e-invoice transmission to buyers.
China is also preparing for a roll-out of e-invoicing of the entire Business-to-Consumer (B2C) and Business-to-Business (B2B) market. That, among other reasons, is to increase the tax authority's ability to monitor whether the right amount of Value Added Tax (VAT) is being paid. Read more about e-invoicing in China here.
International E-invoicing Market 2020, Billentis
What does the e-invoice regulations mean for you as a vendor or business partner?
If you do business in the Asian markets, your corporation must be able to comply with the national demands for electronic invoicing/billing. This means that you must exchange standard-based electronic documents through the PEPPOL network.
If you aren’t already using e-invoicing to business in Asia, then prepare your corporation to do so. E-invoicing is becoming mandatory in Asia, so there is no way around it.
Is the PDF format an e-invoice?
Now you might think: “My operation uses the PDF format for invoicing, isn’t that an e-invoice too?”. Most people would probably say no since a PDF file is not a structured format and cannot be processed automatically. However, with the standard software for Document Management, Lasernet, corporations will be able to process a PDF file and convert it into an electronic format.
In Germany, they use the format ZUGFeRD where the XML file is sent as a PDF file. The Lasernet software can take the PDF file and convert it into a standard XML text file for further processing. It can also do this process in reverse, i.e., taking an XML file and converting it into a PDF file.
Due to Lasernet's ability to convert files to and from PDF and XML formats you can use the PDF format for e-invoicing if you are operating in Asia
With the standard Output Management software, Lasernet provided by Tabellae, corporations can get a solution supporting both the digitalization of e-invoices and simultaneously making sure all the relevant compliance requirements are met.
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Picture Source: Indian Briefing