E-invoicing via a clearance model
Under a clearance model, the tax authorities will audit sales e-invoices near real-time and first validate and approve the supplier's invoices before those invoices are sent to the customers by the supplier or the tax authorities itself.
In Italy, resident taxpayers submit their sales invoices to the tax authority’s platform for approval. The tax authorities forwarded any approved invoices to customers for VAT processing and payment approval. The invoice received by the tax authorities is considered to be the VAT invoice, and VAT can only be deducted based on that invoice.
In India, the taxpayer submits a GST e-invoice to the 'Invoice Registration Portal' (IRP). That IRP of GST will generate a unique Invoice Reference Number (IRN), and digitally sign the e-invoice and also generate a QR code. The digitally-signed invoice will be processed in the GST Network and e-waybill system within 24 hours. The taxpayer is returned the IRN. The customer is issued with the approved invoice. The invoice will be sent to both the buyer and seller mail IDs provided in the invoice.
In Egypt, certain VAT-registered businesses must issue electronic tax invoices that include the electronic signature of its issuer and the standard code for the good or service subject to the invoice approved by the Egyptian tax authorities.