Pre-Clearance or Hard Clearance Model: Invoices must be sent to the tax authorities before they can be sent to the buyer.
Post-Clearance or Soft Clearance Model: Invoices can be sent to the buyer first and then sent to the tax authority for clearance.
Decentralized Clearance Model: The task of clearing invoices is distributed or delegated across different entities or service providers instead of the government authority’s CTC platform
Clearance models can be implemented as a three-cornel model with the supplier, the tax authority, and the buyer being the three corners. Electronically generated invoices are directly received by the government authority’s CTC platform and are subject to clearance (pre-clearance or post-clearance).
This can also be implemented as four-cornel model with the supplier, the certified access point services providers of the seller and buyer, and the buyer being the four corners. The electronically generated invoices are received by the certified access point services providers and may or may not be subjected to clearance (pre-clearance or post-clearance).
SunTec Xelerate e-Invoicing has the capability to electronically generate the invoice in the specified format and integrate directly with the government authority’s CTC platform for clearance in real time or near real time or integrate with the certified access point services providers.
As the exchange with buyer is not regulated in the three-corner model, it is directly done between the trading parties in mutually agreed formats, mostly as PDF documents. SunTec Xelerate e-Invoicing provides highly configurable capabilities for template-based PDF generation and auto emailing to customers.
