Clearance Model
There are currently two types of regime for electronic invoicing compliance reporting. The ‘post audit’ approach translates requirements from paper-based invoicing to electronic flows, allowing the free exchange of invoices between trading partners but requiring them to prove the veracity of archived invoices for up to a decade later by means of an accessible archive and periodic reporting. In countries that have chosen the ‘clearance model’, the tax administration requires each invoice to be reported and authorized electronically by them before or during the exchange process. These two systems have some common features such as requirements for invoice integrity, authenticity and archiving, but there are also many requirements that are specific to each category, as well as many country-specific requirements.
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