VAT in the digital age: are you ready? [3]

We’re on the eve of far-reaching changes to the VAT system, which experts compare in impact to the introduction of the euro in 2002. If you don’t prepare your organisation in time, you could face major (financial) risks in the future. The new legislation mainly affects the processes related to invoicing, compliance and everything connected to them, including Accounts Payable. This has consequences for your people and your processes, but also for the systems that support those processes. In a series of blogs, Menno Steur, Director Solutions at Spendlinq, explains what’s going to change in the new digital VAT system, what impact the changes could have on your organisation in practice and how you can make them work in your favour. In blog 3 of this series, Menno explains how you can prepare your organisation for the requirements of the new legislation.

E-invoicing: a starting point for digital transformation

With the new guidelines under the VAT in the Digital Age proposal – or ViDA for short – there’s a very good chance that e-invoicing will become mandatory for organisations in the EU. Many organisations in the public and private sectors have already made the move from traditional invoicing methods to electronic invoicing, and even use it as a starting point for further digital transformation of finance, procurement and supply chain processes. Despite the well-known benefits of e-invoicing – faster invoice processing, fewer errors, shorter payment terms – some organisations still struggle to take the right steps. Fortunately, there’s a wide range of modern solutions that help organisations comply with the proposed guidelines while reaping the benefits at the same time!

Think big, start small

Menno explains why selecting the right solution is an important step. “After all, you don’t want to have to switch again in no time. The solution needs to be future-proof, in line with your organisational objectives, able to integrate seamlessly with your current processes and easy for your colleagues and suppliers to adopt. As you’ll appreciate, there’s more to this than technology alone. That’s why it’s wise to seek professional, independent advice so you know what to look out for and which modern e-invoicing/Accounts Payable solution can best support you.”

Menno continues: “Chances are you’re missing opportunities that could drastically improve invoice handling in your organisation in the short term. That’s why it’s important to understand where the bottlenecks are that cause delays and (unnecessary) costs, and what the possible solutions are. Consider an approach that centralises invoice processing. If you adopt and document a standard procedure, everyone in your organisation knows exactly how to process invoices with and without a PO (digitally). Also think about a well-considered onboarding process for your suppliers. That takes you another step towards a more efficient process and gives you transparency across all your spend and commitments, with a complete audit trail that ensures you can report financial information accurately and in line with the latest laws and regulations.”

Read the whitepaper | The new digital VAT system and the future of your Accounts Payable process.

VAT in the Digital Age: are you ready? We’re on the eve of far-reaching changes to the VAT system. The new legislation mainly affects processes related to invoicing, compliance and everything connected to them, including Accounts Payable. This has consequences for your people and your processes, but also for the systems that support them. What will change in the new digital VAT system? What does this mean for your organisation? How can you prepare your organisation for the requirements of the new legislation? And more importantly, how can you make these changes work in your favour? In this whitepaper, Menno Steur sets out the answers for you.

Download the whitepaper for free here.