Policy Forum: How Canada Could Benefit from E-Invoicing for GST/HST Purposes

Melina Rocha ()
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Melina Rocha: York University, Glendon campus, Toronto

Canadian Tax Journal, 2022, vol. 70, issue 2, 361-373

Abstract: In this article, the author reviews the importance of electronic invoicing (e-invoicing) in value-added tax systems from the perspective of both government and taxpayers. E-invoicing is defined as the adoption of a standard requiring that businesses issue invoices containing mandatory information related to the supply in a prescribed electronic format, and transmit to the tax administration in real time through a specified electronic system. The author also analyzes the development of e-invoicing systems around the world, beginning with the Latin American pioneers and then proceeding to recent experiences in Europe. The experience in Latin America shows that governments can gain from e-invoicing through the reduction of tax fraud and the consequent increase in government revenue, while the experience in Europe shows that businesses have their own reasons for promoting e-invoicing, most notably to reduce compliance costs. In conclusion, the author suggests avenues for introducing e-invoicing into the Canadian goods and services tax/harmonized sales tax system.

Keywords: Value-added tax; goods and services tax; harmonized sales tax; Quebec sales tax; tax administration; tax credits (search for similar items in EconPapers)
Date: 2022
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DOI: 10.32721/ctj.2022.70.2.pf.rocha

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