e-Tax Invoice & e-Receipt: how to get started smoothly

Businesses that issue large numbers of tax invoices every month know that printing, postage and storage cost more than you might think. Electronic tax invoices and electronic receipts (e-Tax Invoice & e-Receipt) cut this work and make tax data accurate and easier to check. This article sums up what you should know before you start.

Four-step diagram of an electronic tax invoice: prepare the document, sign it digitally, send it to the customer and submit the data to the Revenue Department — Electronic documents prepared and certified to the required standard have the same legal effect as paper documents.

What are e-Tax Invoice & e-Receipt?

They are tax invoices and receipts that are prepared, sent and stored electronically to the standards set by the Revenue Department. When prepared in line with the conditions, these documents have the same legal effect as paper documents and serve as tax evidence for both the seller and the buyer.

The formats you can use

Standard format with a digital signature: the document is created as a file in the prescribed standard and signed digitally with an electronic certificate, and the data is then submitted to the Revenue Department. You can do this yourself or through an approved service provider. It suits businesses with a high volume of documents.
Email format (e-Tax Invoice by Email): the document is sent to the customer by email, with a copy sent to the designated time-stamping system. It suits small businesses whose revenue does not exceed the threshold set by the Revenue Department.

Steps to get started

Review your current set-up: the number of documents per month, the software used to issue them and how they are sent to customers.
Choose a format and a service provider: based on document volume, budget and the connection to your accounting system.
Obtain an electronic certificate: for the format that requires a digital signature.
Apply to the Revenue Department to use the system: for the format you have chosen, and wait for approval before issuing real documents.
Adjust document forms and numbering: so that they carry every particular required by law and run in an unbroken sequence.
Test and inform customers: try the system with a few customers first, and tell customers clearly how they will receive documents from now on.
Decide how files will be stored: keep the original files searchable and unaltered for the full period required by law.

Benefits for the business

Lower printing, delivery and storage costs
Customers receive documents sooner, which helps you get paid sooner
Accurate input and output tax data that is easy to trace back
Less risk of documents being lost or damaged

Points to watch

Cancellations, credit notes and debit notes must also follow the electronic system's procedures, not be made by editing the original file
Customer details such as name, address, taxpayer identification number and branch must be correct before the document is issued
Set rights for who may issue documents, and keep a log of transactions
During the transition there may be both paper and electronic documents, so control the numbering to prevent duplicates

Connect it to your accounting system for the full benefit

The greatest benefit comes when the document system is connected directly to the accounting system. Sales data is then posted to the accounts and into the output tax report automatically, which cuts double entry and errors. On the receiving side, there should likewise be a procedure for checking and importing the electronic files that suppliers send.

Frequently asked questions

What if a customer still wants paper documents?

You can send the electronic document and explain to the customer that it has legal effect. If the customer needs a copy for internal use, it can be printed from the file, but set a clear rule on which version is the original.

Do we have to switch everything at once?

No. Many businesses start with certain document types or certain branches, then expand once the system and the team are ready.

How long must electronic documents be kept?

They must be kept for the period required by law, just like paper documents, in a form that remains accessible and can show that nothing has been altered.

Let us help you set up your tax documents

Kerwin & Vance sets up tax documentation and working procedures, including the move to e-Tax Invoice & e-Receipt with a smooth connection to your accounting system. Find out more about our Tax services, or book a consultation with us.

This article provides general information only. Conditions and procedures may change with Revenue Department announcements, so check the latest information before taking action.