Striving for the perfect invoice | KPMG | US

Striving for the perfect tax invoice

Striving for the perfect tax invoice

In a global digital economy with more than 6 billion smartphone users expected worldwide by 2020, businesses see expanding new markets at nearly every turn.

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Striving for the perfect tax invoice in a digital world

In a global digital economy with more than 6 billion smartphone users expected worldwide by 2020, businesses see expanding new markets at nearly every turn. This digital trend is not just providing benefits for users but to governments and tax collection as well. The increased use of e-invoicing and electronic filing by government authorities is one such example of governments using digital tools to facilitate compliance and track fraud – quicker and more efficiently.

This comes in handy for multinational companies: as they tap new growth opportunities for their goods and services, they face a steady stream of customs and indirect tax regulations – such as value-added tax (VAT) and its counterpart, the goods and services tax (GST) – along every stage of the supply chain, across a multitude of jurisdictions.

Checklist: Anatomy of the perfect tax invoice

While requirements vary by jurisdiction, a ‘perfect’ invoice should include:

  • The buyer and seller
  • Company tax ID
  • Registration numbers
  • Invoice number to reference back information to your ERP system
  • Correct description of the product or service you’re selling
  • Unit price and an extended price for your product or service
  • Freight information
  • Tax rate
  • Tax amount
  • Country of origin
  • Purchase order number and payment terms (optional)

Does your business have the infrastructure to provide customs officials this data, accurately and in real time?

Next steps

A company’s long-term survival hinges on its ability to feed jurisdictions a steady, accurate supply of data, in real time, while satisfying indirect tax and customs requirements along the way. The first step in ensuring the data you provide is fully transparent, and standardized, is to look internally, across departments, and externally, with vendor partners. Are all your players and stakeholders on the same page?

To learn more, download the white paper. To get started, contact us. 

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