In what is now a growing trend, e-invoicing and fiscal reporting mandates are expanding worldwide in an effort by governments to minimize corporate tax evasion. Brazil launched the movement in 2008, marking the first time that a government intervened in corporate financial processes in real-time. As Brazil increased its tax revenue by billions of dollars once this requirement went into effect, countries around the world began to take notice – and follow suit.
Mexico was the first country to enact such invoicing and fiscal reporting requirements, followed by Argentina, Guatemala, Portugal and Chile. Meanwhile, the European Union took notice of the successful war on tax fraud in Brazil, launching its own automated requirements for government transactions. In 2016, not even 20 years later, 69 countries around the world report using electronic data extraction from tax statements to identify fraudulent activities and conduct audits.
While tax authorities are increasingly turning to automated, electronic detection of indirect tax errors, hidden within these requirements are opportunities to streamline processes and reduce costs. Contact us to learn how.