When we hear about the term e-commerce

we immediately think about what we could possibly be doing today such as buying from a reputed online store (possibly based in the United States or Europe), buying music and/or, for those who are most up-to-date, an application from Apple or Android websites. This form of e-commerce is more oriented towards the end consumer and, in these cases, the businesses that issues invoices are often not in the final buyer’s country.

The growth of e-commerce in online stores in these countries has been such that in terms of numbers, it has begun to displace the physical stores’ business. There is no reason to think that these latitudes would escape to this phenomenon, and progressively physical stores start to invest in online stores and consumers choose to avoid problems of time, traffic, rows, and prefer using their computer or cell phone, buy online and wait for their product’s delivery. Some of this has already happened in countries with local versions of the famous “Black Friday”. In many cases, being physical purchases, the store may attach the invoice to the product as it would have done in front of the payment counter at the physical store.

But what happens when what is offered online is not necessarily a tangible good, but rather a service. Or if you purchase a service for your home, for example via a website and pay it online once the service has been provided to your satisfaction? How would you get the invoice? If instead of your home, it was provided at your company, and that the payment is a deductible expense or the VAT paid can be applied as credit? You must make sure that the invoice sent to you by mail is accepted by the tax administration.

Facing this issue, companies usually choose to acquire a tax device or pre-printed invoices according to the local regulations, generate the invoice this way, and hire some type of service for sending the documentation or much worse, they ask you to collect the invoice if you need it. In today’s traffic conditions in cities, this shipping-reception of invoice has become complex and costly. If this business wants to grow, it must assume these costs or transfer them to the customer.

This could encourage unfair competition, because some businesses could appear that do not comply with regulations, do not pay taxes, do not issue invoice and therefore can offer a lower price for the service. This of course, depending on the line of business, can be a factor of bankruptcy for the business that wishes to properly follow the rules.

The Electronic Invoice has, among other aspects, the advantage that it can be easily issued by the related business, they may send its graphic representation (example via PDF) by email and what is more important, it will be almost immediately available to the Tax Administration so the credit can be applied.

We must not forget that businesses that maintain the proper procedures are those that normally comply with the regulations, not only tax-related, but also of other type, such as employment, social security, etc.

In other words, by boosting the growth of online businesses, we do not only makes life easier for compliant companies, but also improve the long-term probability of success for the companies that generate formal employment.

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