I. Process Automation and Efficiency Improvement

Intelligent Whole-Process Electronic Invoice Handling

Electronic invoice systems seamlessly connect with enterprises' ERP systems via API interfaces, enabling automatic capture, verification, and bookkeeping of invoice data. For instance, Formosa Plastics Group has integrated electronic invoices with its ERP system. Invoices for materials and transportation costs can be automatically matched with order data, and verification can be completed without manual checking—shortening the original 10-workday process to just 2 workdays. This automation reduces manual input errors and mitigates risks associated with lost or delayed invoices.

Simplified Reimbursement and Payment Processes

After employees collect electronic invoices through mobile barcodes or cloud accounts, the system can automatically extract expense information and trigger the approval process. For example, for general expense reimbursement, employees only need to supplement necessary information; the system will automatically reconcile invoices with reimbursement forms, generate electronic vouchers, and submit them to accountants for review—significantly reducing manual intervention.

II. Cost Structure Optimization and Long-Term Benefits

Significant Reduction in Direct Costs

Electronic invoices eliminate the costs of printing, mailing, and storing paper invoices. According to calculations by Taiwan's "Ministry of Finance," the comprehensive cost of each paper invoice exceeds NT$30, and the entire region can save over NT$40 billion annually in processing costs. For a large-scale hypermarket, after adopting electronic invoices, the monthly average invoice mailing cost dropped from NT$1.5 million to zero, resulting in annual direct cost savings of over NT$18 million.

Improvement in Indirect Costs and Time Efficiency

The time spent on manual invoice processing is greatly reduced. For example, a TV shopping enterprise increased the processing efficiency of incoming invoices by 70% through electronic invoices, saving NT$144,000 in monthly labor costs. Additionally, cloud storage of electronic invoices eliminates the time-consuming tasks of filing and searching for physical invoices, allowing enterprises to retrieve historical invoice data online at any time.

Differentiated Impact on SMEs

Large enterprises, leveraging economies of scale and existing system integration capabilities, can quickly achieve cost savings. Small and medium-sized enterprises (SMEs) may face initial costs related to system integration and training. However, in the long run, electronic invoices lower compliance thresholds, and standardized services (such as agency bookkeeping) provided by value-added centers further reduce their operational pressure.

III. Strengthened Tax Compliance and Risk Management

Real-Time Monitoring and Automatic Verification

Electronic invoice systems are directly connected to tax authorities, enabling real-time upload of invoice data and compliance checks. For example, the system can automatically verify elements such as invoice numbers, tax rates, and amounts to prevent false invoicing and incorrect declarations. The 2024 amended Value-Added and Non-Value-Added Business Tax Act requires enterprises to transmit invoice data within 10 days; violations may result in a fine of up to NT$100,000, further compelling enterprises to enhance compliance management.

Risk Early Warning and Audit Response

Tax authorities can accurately identify abnormal transactions through big data analysis of electronic invoice flows. For example, in a 2018 case involving the fraudulent issuance of 1.21 million electronic invoices, tax authorities detected a company issuing a large number of NT$1 invoices through platform monitoring, ultimately identifying the criminal group. Enterprises can proactively mitigate tax audit risks using built-in system risk rules (e.g., red-ink invoice control, abnormal invoice early warning).

IV. Data Value Mining and Decision Support

Financial Data Integration and Analysis

Electronic invoice data is deeply integrated with enterprises' ERP and CRM systems, forming a multi-dimensional business database. For instance, enterprises can optimize inventory management, predict customer demand, or evaluate supplier performance by analyzing invoice data. A connector manufacturing enterprise shortened its production plan adjustment cycle and improved market responsiveness by linking electronic invoice data with order data.

Tax Planning and Cash Flow Optimization

The system can real-time calculate the amount of input tax credits, helping enterprises reasonably schedule tax payment timelines. For example, Chimei Chemical ensures full utilization of eligible tax deductions through automatic verification and authentication of invoices, reducing tax losses. Furthermore, electronic invoices accelerate accounts receivable turnover—an international study shows that electronic invoices can shorten the order-to-cash cycle by 15%, increasing cash flow by 3% to 15%.

V. Supply Chain Collaboration and Ecosystem Upgrading

Seamless Connection of Upstream and Downstream Processes

Electronic invoices promote data sharing across all supply chain links. For example, after a supplier issues an invoice, the buyer can instantly access the data to update accounts payable, and both parties can track the invoice status online—reducing disputes caused by information asymmetry. Value-added centers provide diversified B2B delivery services (e.g., XML-format invoice transmission), further improving cross-enterprise collaboration efficiency.

Innovation in Financial Services

Electronic invoice data serves as a credit basis for supply chain financing. For example, third-party platforms such as Formosa Network Technology integrate invoice data to provide SMEs with loan services based on transaction authenticity, lowering financing thresholds and costs. This "data-as-asset" model is reshaping the corporate financial ecosystem.

VI. Risk Management and Technical Challenges

Data Security and Privacy Protection

Electronic invoice systems adopt technologies such as digital signatures, encrypted transmission, and firewalls to ensure data security. For example, Taiwan's "Ministry of Finance" Integrated Service Platform uses blockchain technology to make invoice data tamper-proof and ensure transaction traceability. Enterprises need to regularly assess system vulnerabilities to prevent legal risks arising from data leaks.

Technological Iteration and System Compatibility

With the application of AI and big data technologies, electronic invoice systems must be continuously upgraded to support intelligent analysis and automated decision-making. For example, Chimei Chemical's supply chain financial collaboration platform incorporates AI algorithms to realize automatic invoice matching and risk identification, improving processing accuracy and efficiency. Enterprises need to continuously invest in technical resources or rely on value-added center services to address challenges brought by technological changes.

Conclusion

The promotion of electronic invoices in Taiwan Region is not merely the digitalization of invoice forms, but a restructuring of corporate financial management models. Its core value lies in helping enterprises reduce costs, improve efficiency, strengthen compliance, and tap into the potential value of data assets through automation, digitalization, and ecosystem collaboration. Although SMEs may face initial technical and cost pressures, in the long run, electronic invoices have become a key driver of enterprise digital transformation, with impacts extending to broader fields such as supply chain management and financial services. In the future, with the integration of the Internet of Things (IoT) and smart contract technologies, electronic invoices are expected to further drive the intelligent upgrading of corporate financial management.