Updated 4 years ago by Darshan Patel

The term ‘compliance’ is used in many ways in business practice, for example ‘compliance’ may refer to complying with law, or complying with established business rules or contractual conditions. In the context of e-invoicing, the latter form of compliance includes the conformance by senders of invoices with rules and requirements set by buyers, such as correct buyer references and the correct use of information elements. As to legally compliant e-invoicing, many types of law apply to invoicing processes (and require compliance), but the principal legal requirements stem from indirect tax law (especially VAT), and may include real-time reporting requirements under ‘clearance’ models. In the relationship between a service provider and its customer, compliance may be ruled out of scope and the responsibility retained by the taxpayer itself, or the service provider may support compliance with a range of value-added services.

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