Why Indirect Tax Teams Should Lead the E-Invoicing Charge

For years, indirect tax teams have been stuck in a reactive role. You receive the data, validate it, file returns, move on. But the world of tax compliance is shifting and fast.

Governments aren’t waiting for monthly or quarterly VAT reports anymore. They want live data. Real-time reporting. Full visibility into transactions the moment they happen.

This is where e-invoicing comes in and where tax teams need to step up.

The New Compliance Landscape

E-invoicing mandates are exploding. More than 80 countries are implementing or considering some form of Continuous Transaction Controls (CTC). What used to be a back-end reporting exercise is now a front-line compliance issue.

In a CTC world, invoices must be validated, reported, or cleared with tax authorities before or as they’re being issued. That means your internal systems from ERP to e-invoicing platforms must be aligned with local tax regulations, data formats, and workflows.

IT can build systems. Finance can manage processes. But only the tax team truly understands the compliance obligations at stake.

E-Invoicing Is Not a One-Size-Fits-All Game

Every country has its own flavor of e-invoicing.

• In Italy, you must send invoices through SDI.
• In France, it’s a centralized model with PDPs and PPFs.
• In Poland, KSeF will become mandatory for B2B transactions.
• In Mexico, you have to use CFDI formats and PAC-certified providers.

It’s not just about “sending an invoice electronically.” It’s about sending it in the right way, with the right data, to the right system, at the right time. That requires deep local tax knowledge and a seat at the planning table.

Why Tax Can’t Sit on the Sidelines

Too often, tax is brought into e-invoicing projects after major decisions have already been made. By then, an IT-driven architecture has been selected, integrations are underway, and vendor contracts are signed. Tax is left reacting to what’s already in motion sometimes discovering only too late that critical compliance requirements were missed.

That approach creates risk. Not just audit risk, but real business disruption. Failed invoice submissions can block cash flow. Non-compliance can trigger penalties. And regulators don’t care if the issue was caused by an overlooked field in your ERP.

When tax leads, this risk shrinks.

Tax Should Drive These 4 Key Areas

1. Strategic Input on Design Tax should help define how e-invoicing flows are built, which countries are prioritized, and how mandates are tracked. This isn’t a one-and-done project. New countries go live every year. Your architecture needs to support change.
2. Vendor Evaluation Many e-invoicing providers claim “global coverage,” but that doesn't always mean full compliance. Tax must assess whether those vendors meet real regulatory needs formats, timelines, integration with local portals, and more.
3. Master Data Ownership A huge percentage of compliance issues stem from bad data. If your VAT numbers, invoice classifications, or supplier/customer info is off, you’re already in trouble. Tax should help own and cleanse the master data that flows through e-invoicing systems.
4. Ongoing Monitoring & Change Management E-invoicing is not a “set it and forget it” process. Rules evolve. Governments update schemas, platforms, and procedures. Tax needs to stay on top of these changes and coordinate updates across systems and teams.

The Payoff of Getting It Right

When indirect tax teams lead e-invoicing initiatives, companies don’t just stay compliant they operate more efficiently. Real-time visibility improves VAT reclaim accuracy. Clean data reduces reconciliation headaches. And automation frees up teams for more strategic work.
More importantly, it prevents fire drills. It keeps the business running, cash flowing, and auditors away from your doorstep.

Bottom Line

E-invoicing is not just an IT integration or finance automation project. It is a strategic compliance initiative that directly impacts your tax exposure, operational efficiency, and regulatory reputation.
Indirect tax managers understand these risks better than anyone. They know the consequences of getting it wrong and the steps needed to get it right.
So let’s stop treating tax like an afterthought and start giving it the leadership role it deserves.

Author: Fabio Santoro

Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.