How Pagero’s two-step e-invoicing simplifies global compliance and frees up your IT resources
Highlights:
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In today’s rapidly evolving regulatory landscape, multinational companies face a growing challenge: complying with diverse e-invoicing mandates and Continuous Transaction Controls (CTCs) across multiple jurisdictions. With over 80 countries already implementing e-invoicing requirements and more joining the trend, this challenge is only intensifying.
The global e-invoicing challenge
The lack of universal standards creates significant complexity for businesses operating globally. Technical requirements vary widely, rules change frequently, and systems often don’t communicate effectively with each other.
For IT and tax teams, this is a constant goal that requires careful monitoring and quick changes.
Non-compliance carries serious consequences, including:
- Financial penalties and fines
- Damage to brand reputation
- Potential inability to conduct business in certain countries
Why governments embrace e-invoicing
Tax authorities worldwide are rapidly adopting e-invoicing and CTCs because of these systems:
- Reduce processing costs associated with paper-based systems
- Make tax evasion and fraud significantly more difficult
- Ensure complete collection of Value-Added Taxes (VAT)
- Enable real-time monitoring of economic transactions
- Provide valuable insights into business activities and trends
The mounting IT burden
Initially, when only a few countries implemented e-invoicing, IT teams could manage it by creating custom interfaces for each jurisdiction. However, as mandates have proliferated, the workload has grown exponentially. Teams must not only develop new templates for each country but also continuously maintain existing ones as requirements evolve.
For many IT departments, keeping pace with the volume and speed of changes across multiple jurisdictions has become nearly impossible, leading to compliance gaps and costly errors.
ONESOURCE Pagero: A pioneering solution
Since the 1990s, Pagero (now part of Thomson Reuters) has been at the forefront of secure, automated business data transmission. Recognising the challenges of different e-invoicing formats, Pagero developed its innovative “two-step process” that removes the complexity of tracking technical and regulatory changes.
The ONESOURCE Pagero platform is:
- Open and application-agnostic, reducing vendor lock-in
- Compatible with all major Enterprise Resource Planning (ERP) systems
- Built with a scalable architecture to handle fluctuating transaction volumes
- Adaptable to changing workloads and data transformation needs
How the two-step e-invoicing process works
Unlike traditional invoices, e-invoices are completely digital throughout their lifecycle, enabling faster processing, improved accuracy, and better compliance.
Step 1: Data collection and transmission: Your company’s ERP system automatically transmits invoice data to ONESOURCE Pagero. The platform supports various formats, including XML (extensible Markup Language) and UBL (Universal Business Language). Many companies opt for ONESOURCE Pagero’s universal format because it works across all countries.
Step 2: The conversion process: ONESOURCE Pagero automatically validates the invoice data, formats it correctly for each country, and sends it to the relevant tax authorities. This step involves data enrichment and validation, improving data quality before it enters your company’s systems.
ERP compatibility and scalability
A major advantage of ONESOURCE Pagero is its ability to operate through a single connection with your company’s ERP. This streamlined integration reduces security vulnerabilities, simplifies network configuration, and lowers maintenance requirements. When your company updates its ERP, no reconfiguration of the connection is needed, making expansion into new markets seamless.
Why ONESOURCE Pagero’s two-step approach is superior
Traditional data mapping for e-invoicing requires separate connections for each system or tax authority. This makes it more complicated, costs more, and increases the chance of mistakes
Each regulatory change demands manual adjustments. In contrast, ONESOURCE Pagero’s internal format:
- Enables seamless communication across systems via a standardised, unified format.
- Reduces complexity and cost by leveraging centralised configurations and updates.
- Ensures consistent, validated, and enriched data, minimising errors.
- Fully supports automation through its machine-readable structure and central rule application.
- Scales efficiently, with regulatory changes applied centrally by Pagero.
- Offers built-in support for global and local requirements, managed centrally.
- Accelerates implementation through pre-defined formats and network profiles.
- Simplifies maintenance, as changes are made once centrally and propagated.
What is ONESOURCE Pagero’s unique selling point (USP)?
ONESOURCE Pagero offers more than just software; it provides regulatory adaptation. IT teams no longer need to research technical requirements or develop localised templates. It enables faster market entry by ensuring immediate proficiency in local invoicing systems. Furthermore, the Pagero Network connects over 14 million businesses to a vast array of global e-invoicing services.
Thomson Reuters and Pagero: A powerful partnership
In 2024, Thomson Reuters acquired Pagero, pairing it with the ONESOURCE tax platform to create ONESOURCE Pagero. This complete solution combines ONESOURCE’s indirect tax capabilities with Pagero’s e-invoicing knowledge. This allows multinationals to manage all tax and e-invoicing needs with a universal solution from a single, trusted vendor.
ONESOURCE Pagero: The IT experience
For IT professionals, ONESOURCE Pagero eliminates time-consuming tasks. Teams no longer need to track changing regulations, maintain multiple ERP communication channels, update e-invoicing templates, or manually correct invoice data. The system makes technical support easier, makes integration easier, and maintains data integrity, freeing up IT and tax personnel to focus on strategic initiatives.
The future of global commerce is digital, and e-invoicing is a critical component. Navigating this complex, evolving landscape requires a robust, automated, and intelligent solution. ONESOURCE Pagero provides precisely that, ensuring compliance, efficiency, and peace of mind.
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