Since its inception, e-invoicing has been efficiently changing the core landscape of business transactions and taxation practices. And in some countries, it has also become a mandate to use e-invoicing to perform any kind of organisation-related undertaking altogether.
However, to learn more about the exciting developments in the market, we must first look at the Asia-Pacific market. After all, it’s considered to be the most prolific growth market as a whole. According to a report, the Asia-Pacific segment was valued at somewhere around USD 1,019.8 million. And the same study suggests that it’s estimated to reach USD 4,075.8 million. The expected growth rate is calculated to be at 19.4%.
This blog will look at how India, Vietnam, Japan, and Australia mandate e-invoicing throughout their nation. So, let’s get to reading.
E-invoicing in India
As per the Indian regulatory department, e-invoices should be issued in JSON format to the IRP. The document may include an e-signature. However, it’s not mandatory.
In any case, once the e-document has been submitted, the IRP will authenticate the e-invoice. It will be performed before offering the supplier a response message.
The document validation will be based on the below-mentioned parameters –
● If the response of IRP is positive, the invoice will be signed digitally and then assigned an idiosyncratic number offered by the IRP. A QR code will also be generated to provide the buyer and the supplier to confirmation the validation of the invoice. It’ll also prove that it has been corrected in the country’s GST system. Then, the IRP makes the document available to each of the parties in the GST portal.
● If the IRP response is negative, an error text will be sent to the buyer and the supplier, detailing the reason behind the rejection.
After the steps mentioned above are completed, the supplier will need to distribute the document to the purchaser. Since the distribution of the subject between the people involved in trading isn’t regulated, the distribution method must be agreed upon between them.
However, as per the regulation, exempt businesses aren’t obliged to process and accept JSON e-documents. Therefore, it’s recommended that the supplier should be able to either print a paper invoice or generate a PDF invoice for distribution to such organisations.
E-invoicing in Vietnam
As per the report, Vietnam has already implemented the process of mandatory electronic invoicing from 1st July, 2022. It was implemented as it can save both money and time of a business. This, in turn, would contribute to greater efficiency for both tax authorities and enterprises.
An organisation must register before using e-invoice (without or with tax codes) to get approval from the tax authority of the organisation. It can be done through the official website of the General Department of Taxation. If a POS (Point of State) system is employed, the seller will need to register as the user of an electronic invoice. Nonetheless, you’ll only need to do it while you are transferring data online with the country’s tax department.
The information within the e-invoice must be written in the Vietnamese language as well. You’ll be able to include other lingos as well. But, Vietnamese can’t be replaced.
Types of Invoices
Two types of e-invoices can be used to make any kind of transaction in Vietnam. The first one is going to require the verification code of the tax authority and the other one won’t need it.
An organisation working in the department of petroleum, electricity, telecommunication, finance and transportation won’t need any tax verification code at all.
However, if your business belongs to the high-risk category (agriculture, fishery, forestry), you’ll need to use a verification code in their e-invoice.
E-invoicing in Japan
Japan has recently become enticingly active in modernising the core business procedure. And for that, the country established the EIPA (E-invoice Promotion Association) in July 2020.
Shortly after its establishment, the EIPA introduced and implemented a national e-invoicing standard fundamentally based on Peppol.
At the time of writing and publishing the article, Japan’s “Qualified Invoice” (e-invoice) system is confirmed to be launched in October 2023.
The new approach seems much like a standard VAT invoicing system and will allow taxpayers to claim input credit on JCT (Japanese Consumption Tax).
It can be received from registered vendors in the country. All vendors in Japan intending to issue an e-invoicing system must register before 31st March 2023 with their local tax office. To ensure that the business organisations are well-prepared for the deadline, the EIPA is requesting everyone to begin using Peppol-compliant software by October, 2022.
E-invoicing in Australia
Like the aforementioned countries, Australia, too, has accepted the e-invoicing procedure. After a certain period of consultation, the Australian government has also decided to invest USD 15.3 million to improve the value of e-invoicing for professional businesses.
The funding will apparently support the Australian Peppol Authority and the Treasury to –
● Deliver educational activities to improve business awareness of e-invoicing.
● Work with proper payment providers to implement e-invoicing into the primary payment method employed by the businesses.
● Progress of various supply chain pilots with MNCs and large organisations garner more and more insights and drive adoption through different chains.
As per BER, three implementation procedures have been proposed to integrate e-invoicing –
● From 1st July 2023 Onward: Each and every registered organisation can request for an electronic invoice from their large trading partners.
● From 1st July 2024 Onward: Each and every registered organisation can request for an electronic invoice from their large and medium trading partners.
● From 1st July 2025 Onward: Each and every registered organisation can request for an electronic invoice from their trading partners. Everyone is obligated to offer the same in Peppol format while sending the e-invoice.
The Final Say!
So, that’ll be all for this article. We hope we can offer the information you were looking for in this aspect. However, if you still think we’ve missed out on something, don’t forget to let us know about it.