Taxpayers Beef Up Compliance With eInvoicing

The Organization for Economic Cooperation and Development, better known as the OECD, has published its new “Tax Administration 2015” report exploring the tax strategies of economies across the globe. The report, analysts say, uncovers some interesting insights into how digital invoices are being used by businesses to enhance government tax compliance.

The analysis, put together by the OECD Forum on Tax Administration, assessed tax strategies among 56 markets, including members of the OECD, European Union and G20 nations.

Reports from AccountingWEB published Tuesday (Sept. 8) said that among the revelations in the report is that companies are increasingly using eInvoicing to ensure value-added tax compliance amid rising noncompliance fears. Administrators, researchers found, are also increasingly processing Big Data from VAT invoices to detect fraud and mitigate risk, AccountingWEB reported.

“Rapid growth in the use by business of modern accounting systems, including for invoicing purposes, has also opened up new opportunities for revenue bodies to enhance the administration of their VAT systems,” the report concluded. Researchers cited Korea, Mexico, Chile and Portugal as just some of the jurisdictions that have recently developed technological strategies to help taxpayers amid rising dependence on the VAT as a revenue stream.

South and Central America were found to be particularly prominent users of VAT invoice data processing, with 25 nations reporting use of such systems, though occurrence in the European Union is also on the rise, the OECD said.

According to reports, the OECD’s report is crucial to understanding how companies can improve compliance and revenue.

“Making it easier for taxpayers to do what they need to do, while also making noncompliance harder, is allowing governments to finance important programs that benefit their citizens,” analysts concluded.

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