Mexico’s E-invoicing mandate shows how far we have come since EasyTrade

Mexico’s E-invoicing mandate shows how far we have come since EasyTrade

Posted by Pete Loughlin in AP Automation, e-invoicing, Electronic Invoicing 12 Jun 2013

I’ve watched what Mexico is doing with great interest. The people behind the e-invoice mandate in Mexico are courageous and ambitious but they’re not the first to tackle such a challenge.

Some time ago I chatted to Christian Lanng, CEO of Tradeshift, about his experience in Denmark and it struck me that there could be some interesting insights from his experience in developing the Danish mandated solution EasyTrade. So I asked him. To what extent, if any, I wondered, is Mexico treading in Denmark’s footsteps?

Purchasing Insight logoChristian Lanng: “Mexico’s move to mandate e-invoicing for all companies with a revenue over $20k is not just another step in the inevitable march toward global ebusiness — it represents a new phase of maturity.

“The opportunity to improve efficiency in how a public sector organisation works with its suppliers is becoming increasingly hard to miss. But years ago, when we were considering the challenge at the Danish Government, it was a different world. Nobody had really attempted to create such an ambitious solution before.

“We were the first to identify the priorities of making it free for suppliers. We were also the first to establish the importance that interoperability and openness would have on success. But to do so, we had to start from scratch. This was a world where an option that ticked those boxes simply didn’t exist. So we built it, and the rest, as they say, is history.

“Mexico is facing the challenge in a different time and a different world. A lot has happened in the last 7 years and the nature of the strategy they’re following shows that. Where we encouraged the use of EasyTrade, Mexico is able to leave the decision up to the market — and the options exist to make the transition much easier and more effective.

“This time, it will be up to the people to decide which solution and which vendor is best. The decision on what the most important aspects are will not fall with the Government (beyond establishing the CFDI standard) but with real businesses. In many ways, it will be the ultimate validation of the tenets that were laid down by the Danish Government nearly a decade ago.

“Mexico has laid down the law but it’s the market that will decide where the majority follow. “

Christian Lanng (@christianlanng) is CEO and co-founder of Tradeshift

  • Markus Hornburg June 12, 2013 at 5:32 pm /

    I’m having the pleasure of listening in person to the Mexican SAT explaining their approach to electronic invoicing and it strikes me that this approach goes far beyond a government asking Suppliers to submit invoices electronically. It is an approach that targets all invoices transacted in this market. As such it is a giant step towards real time audits and complete fiscal control over corporates and their trading. This goes beyond service providers and their commercial models.
    But what it also focuses on is the business requirement for accurate content and also the chance to reconcile invoice content against actual provisions of goods and services. From what I am seeing and hearing here at AMEXIPAC in Mexico City, we probably need to accept that countries like Mexico will lead this development from a tax administration point of view. It will be a decision made by the companies in the market, which service provider they will entrust with the rest. It is important to stress that these service providers will be forced to accept huge responsibility if they want to offer their services in line with the regulations.

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