Electronic invoicing is already changing the way that businesses handle the administration of indirect tax. According to one firm, filing an e-invoice as opposed to a paper invoice saves €6.40 and, according to another market report, automated e-invoicing will result in 60-80% savings over each conventional paper invoice. Invoicing on blockchain, which is quicker and more secure than traditional e-invoicing – is already a reality.
In August 2018, a blockchain-based invoicing system made its debut in the Chinese city of Shenzen, but the company which issued the first blockchain-based invoice was not a leading innovator in technology: it was a restaurant. Neighbouring businesses, which were the next to join this new system, included a car park and an auto repair shop. Blockchain is a technology which can serve all businesses, of all sizes, across all sectors.
Invoicing on blockchain allows a company to perform all the duties that are important to VAT compliance plus it creates the perfect environment for meeting all the strictest requirements of e-invoicing regulations around the world. Counter-party acceptances, contract verification, “know your customer” checks, and payment can all be performed instantly on the blockchain.
