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B2G Electronic Invoicing Will be Mandatory in the United States in 2018


Those companies in the United States that provide goods and services to the government will be obligated to use electronic invoicing toward the end of fiscal year 2018. The goal of implementing e-invoicing, which is detailed in a statement by the Office of Management and Budget (OMB), is to expedite payments and automate procedures of eProcurement. In addition, this system will allow the purchases of the federal government to be more visible and transparent.

However, the U.S. Administration has not decided which type of format and structure it will use with the new e-invoicing system. Nevertheless, this directive requires the OMB to present the standards and regulatory changes necessary to implement this system in 180 days after July 17th. It will also be necessary for the OMB to collaborate with the Department of the Treasury to develop the appropriate recommendations that allow for the creation of a central portal for the submission and distribution of invoices.

The Federal Government is the main buyer of products and services in the United States. It processes more than 19 million invoices every year, so the potential for economic savings for the public and private sectors is very high. Apart from this advantage, companies will benefit from the traceability of their receipts. Also, they will be able to check the status of their invoices in real time without making a telephone call or sending an email.

A Global Trend

The use of electronic invoicing is spreading around the world. Some Latin American countries were pioneers in implementing this system in order to improve fiscal control and reduce costs. Among them are Mexico and Brazil where the use of the e-invoice has reached 90%.

In recent years, Asia and Europe have also carried out initiatives to encourage the use of electronic invoicing. Spain, Italy and Portugal have established mandatory e-invoicing in regards to commercial relations in the public sector. Switzerland and France among other regions are expected to do the same.

The use of e-invoicing is growing around the world because it provides security, economic savings and automation. These benefits are reasons why the United States is implementing e-invoicing.

How to Implement Electronic Invoicing?

To facilitate the implementation of this technology in companies, EDICOM has developed an international platform for electronic invoicing. This solution, which is integrated into a company’s business management software, allows multinational companies to generate, announce, send and receive electronic invoices automatically and conforms to the requirements established by more than 60 countries in the world.

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