Avalara (Credit image/Pixabay/Steve Buissinne)Avalara, a provider of cloud-based tax compliance automation for businesses has announced it has expanded its collection of e-invoicing certifications. The company has become a Peppol certified service provider in Australia, Japan, New Zealand, and the European Union. The company also shared its involvement as a technical committee contributor for the Business Payments Coalition’s E-invoice Exchange Market Pilot. The pilot is supported by the Federal Reserve, announced the Digital Business Networks Alliance has elected Alex Baulf, Senior Director of E-Invoicing at Avalara, to its interim board of directors.

Avalara intends to be accredited by the Digital Business Networks Alliance as an access point and service provider to facilitate the sending and receiving of electronic business documents over the new exchange framework that will go live later this year in the US.
Governments in every region of the world are implementing e-invoicing mandates in a myriad of ways to close tax gap. This is adding complexity and making it challenging for businesses to effectively keep up with all the changes and comply,” said Jayme Fishman, EVP and GM of Indirect Tax at Avalara.

For nearly 20 years, Avalara served as the intermediary between business and governments to simplify the complexities around tax compliance. Today, geographically dispersed businesses can confidently turn to Avalara to address all facets of their global compliance journey. This includes tax calculations, filings, cross-border compliance, e-invoicing, and more.”

Governments are rapidly adopting e-invoicing standards

More than 60 countries have announced or already require e-invoicing mandates as they look to modernise and monetise their economies. E-invoicing technology provides an efficient and effective way to monitor transactions between businesses and customers. This allows governments to reduce the gap between their expected and actual indirect tax revenues.

In addition, countries have chosen to adopt different modes of e-invoicing, from periodic to real-time reporting, to meet regulatory needs. Some countries leverage an open network, such as Peppol, for businesses to transmit e-invoices. Others have country-specific networks and local standards, like the Italian Revenue Agency’s e-invoicing platform, Sistema di Interscambio (SdI). An invoice approval portal that ensures live verification of taxable transactions by the Italian tax authorities.

E-invoicing will have a significant impact on the tax management process of businesses in the next 24 months,” said Kevin Permenter, Research Director, IDC. “Businesses selling globally will have to comply with e-invoicing requirements if they want to stay competitive and scale their operations. To effectively manage e-invoicing requirements, businesses will save time and money by turning to cloud-first e-invoicing solutions like Avalara. Solutions that offer deep integrations between the relevant finance functions.

Easily access e-invoice exchange networks with Avalara

Avalara’s e-invoicing platform has expanded with new certifications, including certifications that allow Avalara to connect customers to the Peppol network. This facilitates the sending and receiving of tax-compliant electronic invoices to and from entities on the global network. In addition to issuing e-invoices to government departments.

(Image credit/LinkedIn/Alex Baulf)
Alex Baulf, Senior Director of E-Invoicing at Avalara

E-invoicing is the clear direction for tax authorities and governments globally. Businesses have historically played a game of whack-a-mole trying to tactically meet new e-invoicing and live reporting mandates popping up across the globe. This will be through a mixture of multiple local point software solutions, outsourcing, and heavy customisation of systems,” said Baulf. “This approach is not sustainable or scalable. Multinational businesses are now viewing e-invoicing strategically. They want a trusted accredited service provider that can meet evolving mandates through a single global solution. Accreditation from national Peppol authorities provides businesses with additional trust in the compliance, security, and integrity of the service provider that is generating and exchanging compliant invoices with trading partners.”

Baulf is a participating member of the European Commission’s E-Invoicing Technical Advisory Group. The Group provides technical advice to the European Commission on the European standard for electronic invoicing, EN 16931-1.

In 2021, Avalara acquired INPOSIA Solutions GmbH, to enhance the company’s existing e-invoicing capabilities in Brazil and India. The acquisition supports customers worldwide with real-time compliance. In 2022, Avalara announced a preview release of its e-invoicing API. The solution allows Avalara partners to offer customers the ability to send and receive e-invoices from within their applications.

Enterprise Times: What this means for business.

E-invoicing is impacting how the finance teams in enterprises operate as part of a companywide digitisation strategy. E-invoicing converts traditional paper invoices into electronic documents, allowing for the digitisation and automation of a company’s billing process. With the continual rise of global eCommerce and B2B activities. The global trend is for many businesses to embrace DT2 models to engage directly with customers. Additionally, governments, irrespective of whether they are central or local governments embracing digital technology to reach local citizens is forcing the rapid maturing of E-Invoicing.

Avalara’s new E-invoicing certifications and participation in local and global exchange networks show the company plans to remain in the vanguard supporting tax compliance for businesses and governments. Enterprises want trusted partners to safely and securely manage tax compliance across different US states and across international jurisdictions.


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