Australia is introducing mandatory e-invoicing for government agencies by July 2022. The Australian government says they are consulting on making e-invoicing mandatory across all levels of government and by business.
The e-invoicing initiative is part of a broader digital effort designed to boost the Australian economy. As part of the initiative, the Australian government has set aside AUD3.6 million “mandating the adoption of electronic invoicing by 1 July 2022 for all Commonwealth government agencies to encourage greater adoption amongst businesses supplying to government and within their supply chains, and to consult on options for mandatory adoption of e-invoicing by businesses”.
How Australia’s e-invoicing helps business
Australian authorities say that moving to e-invoicing has a number of benefits for business. E-invoicing saves time and reduces mistakes. Consequently, suppliers can secure faster payment.
E-invoicing can also be more cost effective. In fact, authorities say that e-invoicing can potentially save businesses up to 70% on processing costs.
Environmental benefits of e-invoicing
Moving to a fully paperless invoicing system brings obvious environmental benefits. According to Australian authorities, e-invoicing uses less energy and resources. You also require less storage space.
As an attendant benefit, the system automatically stores e-invoices. Consequently, you don’t have to worry about the possibility of losing physical invoices.
International trading standards
Australia’s e-invoicing system follows the international PEPPOL standard. By using a common standard, businesses with different software can still effectively communicate with each other via the e-invoicing system.
The benefits of e-filing are clear. It’s fast, efficient, transparent and more cost-effective than physical invoicing.
Moreover, as e-filing becomes the global standard, businesses will eventually be compelled by law to move to e-invoicing in many countries.
Become digitally nimble and flexible
For that reason, businesses need automated systems that seamlessly integrate invoicing and VAT filing. Flexible technology enables you to adapt effectively to changing regulations.
Vatglobal’s proprietary VAT compliance technology is a fully-automated VAT solution that eliminates human error and enhances efficiency. Get in touch with Vatglobal for a complete digital invoicing and VAT solution.