Authors: Chethan Kumar G M, Dr. Allah Bakash
Abstract: Global move towards mandatory electronic invoicing and real time digital tax filing is a paradigm shift in fiscal governance, with 40 countries currently adopting real time transaction controls. This paper explores the two aspects of the process: the burden of compliance requirements for firms including Small and Medium Enterprises (SMEs) and the business opportunities offered by adoption of e-invoicing systems. The paper draws from examples of implementation of digital tax requirements in Europe, Latin America and the Asia Pacific region to explore a methodology for sustainable adoption of electronic invoicing based on coherent tax technology architecture. The analysis shows that although the process brings considerable revenue benefits to governments, compliance costs for micro businesses are likely to be higher than the taxes they pay. From the findings, organizations adopting technology strategies are able to record major cuts in processing costs and ensure that their tax operations become strategic business facilitators. Business sustainability in the era of digital tax requirements calls for considering compliance as data management problem rather than a requirement.
DOI: http://doi.org/10.5281/zenodo.23099542
