Treasury and E-invoicing

A Corporate Game-Changer

E-invoicing is swiftly transforming global business – driven by government mandates aimed at efficiency and tax compliance – and is destined to impact all businesses irrespective of size. As experts from BNP Paribas and Pagero reveal, the landscape is changing rapidly, presenting challenges and opportunities for corporates, especially MNCs.

Faced with a challenging business outlook, many firms are focusing on operational inefficiencies, not least those associated with invoicing processes. As a result, they are expending considerable effort on leveraging e-invoicing to secure a host of benefits including a reduction in processing errors, improved cashflow management, and time savings.  

Governments globally are keen to encourage the practice to not only help local firms become more efficient but also leverage its potential for bolstering tax administration. They believe it can significantly help their efforts to increase tax compliance and revenue collection, and reduce evasion and fraud.

Lirka Bibezic, Global Head of Product Management – Receivables, BNP Paribas Cash Management, says that while government policies and regulations to promote e-invoicing can be traced back to 2014, specifically in Latin American countries, the take-up is now becoming truly global. Regulation in the early years focused on business-to-government (B2G) billing: the EU, US and UK for instance all require e-invoices for business dealings with the public sector. More recently, in response to the large-scale digitalisation triggered by the Covid pandemic and greater focus on e-invoicing by firms themselves, governments are now zeroing in on B2B invoicing.

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