E-invoice reporting represents a crucial regulatory requirement, necessitating the exclusive submission of invoices directly to authorities, eliminating the need for direct reception by the recipient. This reporting paradigm is particularly pertinent in the context of Business-to-Consumer (B2C) transactions. The primary objective extends beyond the storage of Business-to-Business (B2B) and Business-to-Government (B2G) transactions; it encompasses end customers as well.

This strategic approach empowers regulatory authorities to uphold a detailed and accurate record of all transactions, thereby significantly enhancing their capabilities in VAT monitoring and enforcement.

The diagram below illustrates the standard e-invoice Reporting cycle, a protocol commonly adopted by countries that have mandated the incorporation of e-invoice Reporting.