Compliant e-Invoicing in the USA
Compliant e-Invoicing in the USA
Uptake of electronic invoicing in the United States for tax purposes is very low, although significant growth is expected in the next two years, encouraged by the government drive for its adoption in relations with public administration.
Use of the electronic invoice as a fiscal instrument is widespread all over the world, especially in Latin America and Europe, where decisive steps are being taken to promote its use mandatory in relations with public administration.
No initiatives have so far emerged in the United States to this end, largely due to the way American society perceives this kind of transactions and the American public sector’s non-interventionist tradition in terms of economic activity. Approximately two thirds of US companies send invoices in PDF through their e-mail, but fewer than 20% use data transfer technology such as EDI, or apply data encryption processes like e-signature (data taken from report on e-invoicing status worldwide published by Billentis). If we add the lack of implementation of 100% digitized management processes and low budgets for technology adoption, we can see why the planet's largest economy is lagging behind in terms of e-invoicing use.
A new horizon
Despite it all, the latest studies and surveys published in US markets confirm greater interest in adopting e-invoicing. Not surprisingly, growth of over 20% is forecast in the number of companies using these systems.
The reason behind this significant increase would be in the announcement by the Office of Management and Budget (OMB), calling on public sector suppliers to issue e-invoicing as of 2018. With this measure, the agency aims to boost savings and efficiency, both in administrations and companies.
It is also expected that this measure will involve an incentive to encourage e-invoicing use in the US private sector. In fact, increasing numbers of US multinationals are now required to adopt this billing system to comply with the specifications of clients and tax authorities in the different markets where they operate (especially Latin America). A contradictory situation, as many American companies now need to deploy advanced B2B2G electronic billing in their Latin American subsidiaries, while the system remains a great unknown in their local market.
In Mexico, Brazil and Chile, e-invoicing is mandatory, and the situation is similar in practically all other Latin American countries, where its use is gradually spreading. In Europe, countries like Spain, Portugal Italy or France have made e-invoicing compulsory in the B2G scope, and throughout 2018, 100% of EU countries will be required to join the system in their relations with public administration.
A single solution for all countries
With e-invoicing spreading throughout all continents, the main hurdle for multinationals is adaptation to each market. Each country sets its own requirements, so it is vital to have advanced solutions such as the EDICOM International e-Invoicing Platform, which transparently adapts to the particular features of each “compliant e-Invoicing” system.
A single solution that lets you issue electronic invoices in any country worldwide