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Enhancing e-tax invoice, responding to government’s 4.0 policy

DIGITAL VENTURES October 16, 2018 11:05 AM

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In a generation where the world’s economy is digitally driven, Thailand has also become mindful. This is observed through the government’s policies that encourage and support entrepreneurs to create and submit e-tax invoices and e-receipt since 2012. At the same time, the business sector, especially the procurement department is looking for solutions to respond to the government’s attempt while not interfering with the current system. 

How are paper documents a hassle that needs change?

To get a clearer picture, let us take a look at the conventional procurement process which uses paper documents. What are the problems affecting businesses?

  • Processes with paper documents tend to take longer. In the procurement process, buyers and sellers are required to confirm details back and forth. When all the details are on paper, the process of sending and rechecking by hand can consume a lot of time when compared to sending via the internet and digitally rechecking the details.
  • Converting paper documents to digital forms are challenging. As the government has launched a channel for entrepreneurs to digitally submit tax documents, therefore, if businesses remain to use paper documents, they will be required to digitalize them. This process may sound simple, but in fact, it consumes enormous labor and time. The use of these resources is beyond estimation.
  • Paper documents may have errors and amendments can consume time. Procurement requires verification and confirmation both from the seller and buyer. Error on paper needs to be sent back and can’t be immediately amended. The case is different if documents are digitalized. 
  • The cost of managing paper documents is high. Each year, it is believed that businesses store a large number of paper documents. A 2015 survey from Corp! magazine reveals that the business sector in the USA spends up to 8 billion USD on paper management. In Thailand, large organizations may use paper documents at an average or more than 2 million pieces of paper per year, only in the procurement process alone.

 

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What is obstructing the transformation?

  • Today’s procurement system may not support issuance or acceptance of electronic documents at every step of the process. 
  • Some business partners may still require paper documents for submission to The Revenue Department office. This is also a result of the aforementioned reason.

As seen above, businesses may waste resources because of paper documents, and this can affect business costs. The use of digital solutions for the procurement system to support acceptance and issuance of electronic documents throughout the process seems to be an interesting answer for businesses in this era. 

B2P or Blockchain solution for Procure-to-Pay: A solution for entrepreneurs and support for government policies

B2P is a platform that will enhance the procurement process using the Blockchain technology that has been developed by Digital Ventures. It is designed to support electronic documents throughout the procurement process. The system’s main function is to automatically verify purchase orders, receipts, and invoices. As a result, the process will be paperless, and entrepreneurs can issue the e-tax invoice and e-receipt from the system. 

 

 

B2P not only enhances the procurement process and lessen business costs but also supports government policies such as Thailand 4.0 and National e-payment.

Special thanks to:
E-tax.rd.go.th, www.corpmagazine.com