e-Invoicing compliance: what to look for when selecting a partner

As e-Invoicing mandates and Continuous Transaction Controls (CTC) become the standard worldwide, businesses must prepare to comply with these new regulations. Find out how. 

By Ioana Ploesteanu, product marketing manager, Tradeshift

Governments worldwide are digitizing their tax systems and implementing e-invoicing requirements and controls that differ from country to country. We expect most countries with VAT, GST, or similar indirect taxes to fully or partially adopt such CTC controls by 2030.  If your business hasn’t been impacted yet, it soon will be.

For the vast majority of businesses, the only viable way to manage the complexity of this global trend is by partnering with a technology provider specializing in e-Invoicing compliance.

But how do you choose the right partner for your e-invoicing needs?

Here are the critical factors to consider to ensure your compliance efforts are managed effectively.

Why it’s crucial to select the right e-Invoicing compliance partner

Navigating the intricate web of mandatory e-invoicing regulations requires more than a basic understanding of local tax laws.

The risks of non-compliance are severe, ranging from hefty fines and prolonged audits to potential loss of business opportunities.

For businesses that operate internationally, the stakes are even higher.

An ineffective compliance partner can lead to operational disruptions and financial penalties, especially in regions with strict e-invoicing and CTC mandates.

Beyond mitigating risks, choosing the right e-invoicing compliance partner can offer strategic advantages, such as streamlined invoice processing, reduced administrative burdens, and improved cash flow management.

Key considerations when evaluating an e-Invoicing compliance partner

For the vast majority of mid-large organisations, partnering with a specialist technology provider is the only realistic way to stay ahead of a rapidly evolving compliance landscape.

However, not all compliance partners are created equal. It’s crucial to evaluate how different solutions can meet your goals and add value to your organization.

When selecting a compliance partner for e-invoicing, it’s essential to match their capabilities to your organisation’s specific needs. Here are some key considerations:

1. Global experience adapted to local needs

Ensure that your potential partner has substantial experience managing e-invoicing compliance across multiple markets.

They should have a deep understanding of both local and international regulations and a proven track record of successfully delivering compliance solutions.

Look for partners who have established a presence in regions critical to your business and can adapt to different regulatory environments.

2. Comprehensive Compliance Support

A reliable compliance partner should provide more than a basic electronic invoicing solution.

Look for comprehensive support that covers the entire e-invoicing and AP automation lifecycle, from invoice creation and submission to archiving and reporting.

Key capabilities should include:

• Automated validation and error-checking to ensure invoices meet local tax authority requirements.
• Real-time updates and alerts to keep you informed of regulatory changes.
• Support for multiple invoicing formats to accommodate different countries’ requirements and specific customer needs.

Verify that the partner can handle both outbound and inbound clearance processes to ensure compliance for both invoice issuers and receivers.

3. Scalability and flexibility

As your business expands, your compliance needs will grow as well.

Choose a partner that offers scalable solutions capable of handling an increasing volume of transactions and supporting new regions.

Flexibility is also essential—a good partner should provide solutions that integrate seamlessly with your existing ERP and financial systems, minimising operational disruption.

Customisable features should be available to fit your specific business workflows.

4. Proactive adaptation to regulatory changes

The e-Invoicing landscape is constantly evolving, with countries regularly updating their regulations and requirements.

A competent compliance partner should be proactive in monitoring these changes and adapting their solutions accordingly.

They should provide a clear roadmap for compliance, ensuring you are always ahead of upcoming mandates.

5. Supplier and buyer experience

E-invoicing compliance isn’t just about meeting regulatory requirements; it’s also about creating a seamless experience for both suppliers and buyers.

The right partner should offer solutions that make it easy for suppliers to submit invoices and for buyers to validate and process them.

This includes providing intuitive interfaces, automated workflows, and robust support services to minimize friction and enhance collaboration.

Ask potential partners about the benefits they offer to suppliers using their platform.

Do they provide easy onboarding and training?

Are there mechanisms to simplify data collection and verification?

A partner like Tradeshift, which supports a community of over one million digitally connected buyers and sellers, offers substantial advantages in fostering strong supplier relationships and reducing administrative overhead.

Five key questions to ask In your discovery calls with potential compliance partners

• To what extent can you demonstrate experience and capabilities in delivering compliance across multiple markets
• Can you provide a clear roadmap to support with clearance models as they’re rolled out in other countries
• How do you tackle the collection and verification of any additional data I may require for invoice processing not covered by local CTC mandates? 
• Are you purely focused on helping businesses achieve compliance, or do you offer a range of solutions that can help me streamline and automate the entire Procure to Pay process?
• What kind of experience and benefits does your solution offer suppliers invited to use the system to send invoices?

Tradeshift’s commitment to compliance and supporting digital transformation

Tradeshift offers a proven compliance-as-a-service process, providing innovative solutions that empower customers like Air France, Disneyland Paris, and Schaeffler to drive their digital transformation while meeting e-invoicing and tax clearance mandates.

Currently, we deliver compliance-as-a-service in 70 countries, including a streamlined approach to managing tax clearance requirements in 12 countries and e-invoicing mandates globally.

We support compliance for countries with tax clearance or B2B e-invoicing mandates such as France, Romania, Malaysia, and Germany, with more European and APAC countries included in our roadmap.

To maintain compliance excellence, we continuously monitor emerging global regulations, ensuring our roadmap evolves to meet the needs of additional countries.

Notably, we are the only company offering cross-zone fapiao e-invoicing capabilities in China and among the first to achieve registered PDP (PDP immatriculée) status in France.