Compulsory use of e-invoicing likely to increase
The Department of Veterans Affairs Financial Services Center (VAFSC) in the US has just become the latest government entity to mandate the use of electronic invoicing supporting the Improper Payment Elimination and Recovery Improvement Act signed by President Obama in January this year.
Analysts and observers interested in e-invoicing have for some time been taking a close interest in developments in Latin America. Despite being relatively late into e-invoicing, the adoption rates in Mexico and Brazil are extremely high because governments have mandated its use. They’re mandating e-invoices because it allows the authorities more effectively to control and manage the collection of taxes.
I’ve always held the view that this approach would be seen as a little heavy handed in the US and Europe but the move by the Department of Veterans Affairs appears to represent what could be the thin end of a healthy wedge that would see an increase in the compulsory use of electronic trading in order to regulate business transactions more closely.
This is also a feather in the cap for OB10 who have been working with VAFSC since 2007. “Electronic invoicing is the leading technological solution that eliminates error-prone manual processing and prevents improper payments,” says Clint Loeser, VAFSC’s Director of Financial Operations quoted in OB10’s press release. “Receiving e-Invoices from suppliers ensures a faster, more cost-effective and transparent payment process.”
Pete Loughlin can be found on twitter @peteloughlin