Ĵý Business Network Digitalizes Procurement for VAT E-Invoicing Mandates


Government mandates for e-invoicing to track VAT (Value-Added Tax) payments are one of the fastest growing trends driving the digitalization of business practices worldwide.

Following a series of issued during the past decade, the has now mandated e-invoicing for all B2G (business-to-government) procurements. The same requirements are expected to include B2B transactions in Europe as well. So far, over 100 countries including Italy, Germany, Poland, Greece, France, and Romania have enacted mandatory e-invoicing legislation, as have numerous others in Latin America and Asia.

Cloud-Based Platform Collaboration Supports E-Invoicing Compliance

There’s no big mystery behind the e-invoicing push. In-country regulators and policymakers see digitalization as crucial to improve fraud detection, simplify VAT reporting, and gain a measure of transparency. While e-invoicing mandates from governments add a layer of complexity for buyers and suppliers, cloud-based platforms have become the norm to automate and simplify collaboration.

One example is , where buyers and suppliers can manage procurement and invoicing activities with their trusted ecosystem.

“As governments add e-invoicing mandates, we’re committed to help organizations by providing capabilities for regulatory consistency,” Lorraine Yao, director of Product Marketing for Ĵý Business Network, said. “Digitalization automates the flow of accurate information from order placement, shipping confirmation, and delivery through e-invoicing that’s connected directly to the company’s ERP system. Organizations can replace manual verification with automation based on real-time updates that speed up accurate processing, order fulfillment, and timely payments.”

Ĵý Business Network helps procurement with supply assurance, efficiency, compliance, and spend transparency

Buyers and Suppliers Reap Benefits of Connected Network

Yao said that organizations transact US$5.3 trillion in annual commerce on Ĵý Business Network, totaling 746 million B2B transactions each year. Business results to date have been impressive.

After centralizing automated supplier invoicing and collaboration on Ĵý Business Network, the procurement team at a U.S.-based clothing and accessories retailer saved time with quick access to spend details and reporting analytics. With fresh insights, the strategic sourcing team can identify savings opportunities and expediently act on emerging trends.

A multinational infrastructure and renewable energy company based in Europe moved to Ĵý Business Network as part of its company-wide procurement transformation. Replacing manual processes with automated machine-to-machine transactions has reduced errors, increased efficiencies, and provided the procurement team with real-time insights across the supply chain for more informed decisions.

Global Business Transformation from E-Invoicing

E-invoicing is yet another advancement slated to leave legacy tax collection behind. In an survey, 61% of tax professionals agreed that e-invoicing will have a significant impact on their tax management process in the next 24 months. Researchers expect e-invoicing “to fuse compliance and invoice management into one extended process…as VAT and GST (goods and services tax) protocols grow…This essentially means that every company conducting business in the global market will have to interact with these e-invoicing protocols.” It’s no wonder that e-invoicing mandates are spreading rapidly as countries including Australia, Japan, New Zealand, and Singapore adopt the EU model, adapting requirements to their specific needs. 

E-Invoicing Boosts Sustainability

Much more than surface automation measures, e-invoicing also contributes to what the calls the twin transition, meaning digital and green transformation. After all, when companies use less physical material such as paper, printing, and postage, along with fewer resources routing and archiving data, they can save energy.

“Buyers can quickly process information and data contained in electronic invoices and feed them directly into a company’s payment and accounting systems,” Yao said. “Our Ĵý Business Network customers find that procurement teams spend less time retrieving information and more time modeling strategic decisions. They can easily collaborate between internal groups and external suppliers, reducing inquiries and speeding up approvals while improving compliance.”

Broadened Positive Impact of Digitalization

Although e-invoicing is a government mandate in a growing number of countries, leaders in many organizations have realized that digitalization has broader business benefits. analysts predict that by mid-2025, 70% of global businesses will use embedded financing to collect and make payments. This includes services like invoice transmissions.

“Digitalization gives both buyers and suppliers transparency to see e-invoice status, saving time and improving efficiencies,” Yao said. “Having immediate visibility to relevant procurement data in one dashboard, accounts payable teams can make the most of early-payment discounts and better manage working capital. This also improves cash flow for suppliers who receive timely payments. Ĵý is committed to help companies manage procurement end-to-end, including e-invoicing to meet country-specific mandates, and build trading partner relationships for business growth.”

Susan Galer is a communications director at Ĵý. Follow her @smgaler.

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