Simplify Invoicing Process: The Importance of Consolidated e-Invoices
When stepping into the e-invoicing era, businesses must familiarise themselves with various types of e-Invoices and understand which types of transactions or situations call for which types of e-Invoices. There are several types of e-Invoices available, such as normal e-Invoices and consolidated e-Invoices. Businesses must be able to identify and choose the best way to implement
e-invoicing based on their specific circumstances and needs. In this article, we will provide you with an understanding of the concept of consolidated e-Invoice and show you how it can streamline and simplify your invoicing process.
What is a consolidated
e-Invoice?
Suppliers may issue normal receipts or invoices and have the option to aggregate them into a
consolidated e-Invoice. This method enables suppliers to aggregate multiple receipts or invoices, even from different dates and involving various buyers, into a single consolidated e-Invoice. It eliminates the necessity of issuing separate invoices for each transaction.
Consolidated e-Invoices typically apply to certain business-to-consumer (B2C) transactions. In cases where buyers do not require an e-Invoice, suppliers may issue a normal invoice to the buyers in accordance with current business practice. Subsequently, suppliers may aggregate these normal invoices and issue a consolidated e-Invoice to
support the transactions made. Furthermore, the Inland Revenue Board (IRB) has set a specified timeframe for the submission of consolidated e-Invoices. According to the IRB’s guidelines, suppliers are required to submit consolidated e-Invoices to IRB within seven calendar days after the month-end.
Creating individual invoices for each transaction is an extremely time-consuming task for organisations. Businesses may need to invest additional costs and require more resources to handle the invoicing process, which may potentially affect the overall business operations. Conversely, consolidated
e-Invoices can simplify and expedite the company’s billing process, effectively reducing the time spent on handling e-Invoices while improving business efficiency.
Which industries are prohibited from issuing consolidated e-Invoices?
According to IRB’s guidelines, certain industries are prohibited from issuing consolidated e-Invoices. This also implies that these industries would have to issue individual e-Invoices for each transaction. These industries include:
Automotive;
Aviation;
Luxury goods and
jewellery;
Construction;
Wholesalers and retailers of construction materials;
Licensed betting and gaming; and
Payment to agents / dealers /
distributors.
In summary, consolidated e-Invoice serves as a great way for businesses to streamline their invoicing processes. Have you ever wondered what steps should you take to ensure a successful transition to e-invoicing for your
business?
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