2. B2B automation is leaving kindergarten Growing up requires a move from engine room to board room Not just obey public rules, integrate them
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6. Describe good business measures for e-invoicing Ask an informed business person (or tax consultant): Describe good business measures for e-invoicing Ask tax administrations:
13. The evidence dimension: control options Always a mix of two fundamentally different ways of providing evidence, at opposite ends of the spectrum. EDI/other E-signatures historian/ detective Corroborate, substantiate claims: documentation, audit trails, e-discovery…. mathematician 1+1=2 Process-driven Technology-driven
24. Value stack Base controls using good electronic signatures AES QES Localization Long-term auditable formats, audit page, Compliance Map Punchout to process policies, third party certifications Supply side, assuming volumes +200,000/year No demonstrable control: administrative fines & VAT risk for buyer (Process alternatives: documentation, audit trails, reproducible matching) No compliance with Directive option for MS QES: administrative fines & Potentially VAT risk for buyer No compliance with explicit local form requirements: administrative fines & potentially VAT risk for buyer (Could be undone in court, ECJ in final instance) Impact of evidence position on audit time: Cut back on audit process & VAT expert time spent Strengthen internal controls Speed up rollout Provide excellent service to trading partners
25. The score 1=very expensive for business – 5=reasonably inexpensive
Many companies struggle to reconciliate their push towards consolidation of global business processes with the fact that the laws for such business processes are all local. In fact, such laws are increasingly local because there are so many of them and often they regulate topics (taxes, security, privacy) that are sensitive and for which it is hard enough to create a national consensus. It would be expensive and risky to try and integrate such local compliance throughout a large corporate’s typical complex multi-layered IT environment: because laws keep changing and there are so many of them to keep track of, just the change management required to keep such a system stable would be very expensive.
So many companies are caught between a rock and a hard place; either they face sanctions for non-compliance in multiple countries, or they set up a system that is practically unmanageable. TrustWeaver offers a solution to this dilemma for e-invoicing: we allow B2B applications to source compliance services directly from an “on demand” solution which minimizes the “compliance footprint” on the underlying information system. This is what we call compliance management outsourcing.
