The digital business landscape is forever changing, yet one thing is certain: electronic archiving is more than a convenience – it’s a matter of compliance.
As governments worldwide invest in digital tax transformation initiatives like e-invoicing and e-reporting, a complex web of e-archiving requirements that vary across borders is also developing.
Understanding your e-archiving requirements is essential for maintaining proper tax evidence, surviving audits, and preventing potential business disruptions.
Understanding e-invoicing and e-archiving fundamentals
E-invoicing refers to the issuance and exchange of digital invoice documents, often in structured formats, replacing traditional paper processes. As countries implement mandatory e-invoicing and other types of Continuous Transaction Controls (CTCs) to close tax gaps and reduce fraud, these electronic documents must adhere to increasingly complex country-specific requirements.
While e-invoicing addresses the transaction process, e-archiving focuses on the long-term storage and preservation of these electronic documents in their original format to allow subsequent audits. This means proving that an archived invoice is precisely the same as when it was originally issued or received, with no unauthorised alterations.
According to research conducted between 2024 and 2025 by the Digital Innovation Observatories, “document archiving and management is the most commonly adopted service as a consequence of the introduction of e-invoicing mandates.”
This trend reflects a broader shift: regulatory compliance is no longer just about issuing invoices correctly, but also about how those documents are managed and retained throughout their lifecycle. As such, understanding the fundamentals of both e-invoicing and e-archiving is critical for organisations aiming to remain compliant, efficient and prepared in an increasingly digital and regulated environment.
Why e-archiving deserves your attention
E-archiving requirements are frequently underestimated but are critical to tax compliance globally.
While CTC systems provide real time granular data to the authorities, the possibility to conduct audits persists after the e-invoicing process, i.e. during the storage period, when the authorities will access e-archives to verify compliance. This makes a robust e-archiving system essential for businesses operating across multiple jurisdictions, each with unique regulatory requirements.
Importantly, businesses must maintain their own e-archiving strategy even when tax authorities offer centralised archiving services as part of CTC frameworks. In the event of an audit or legal dispute, it is ultimately the taxpayer’s responsibility to disprove or challenge the data held by the authorities. Relying solely on tax authority systems – or worse, on a counterparty’s archive – could leave businesses vulnerable, with limited control over the integrity or availability of critical documentation.
Moreover, businesses should view e-archiving not merely as a compliance obligation but as an opportunity to improve document management, streamline operations and strengthen audit defence. Without proper archiving, companies risk substantial penalties during audits and may face difficulties demonstrating compliance with local tax laws.
Key e-archiving requirements
While there are several varying requirements from country to country, the following represent some of the essential general elements businesses must keep in mind when implementing a compliant e-archiving system:
- Integrity and authenticity preservation: E-archives must allow taxpayers to prove documents remain unchanged since creation through methods like digital signatures. Certain countries might require timestamps or system description documents.
- Format compliance: Most jurisdictions require invoices to be stored in their original electronic format. When paper invoices are scanned, almost all EU countries allow the destruction of originals, only if you can guarantee authenticity throughout the conversion process and document your procedures.
- Storage period: E-invoices must remain accessible for country-specific periods, typically ranging from 5-10 years. Special transactions like real estate often require extended retention and ongoing legal proceedings or investigations can automatically extend these periods beyond standard requirements.
- Geographic restrictions: Many tax authorities limit where you can physically store archived documents. While the EU generally permits cross-border storage with proper online access, countries such as Oman and Turkey strictly prohibit storing invoice data outside their borders.
- Audit accessibility: Your e-archive must enable tax auditors to quickly find and review invoices through comprehensive search functionality using various criteria (invoice number, date, tax amounts). The system usually must provide both human-readable formats for visual inspection and machine-processable formats for automated verification, with the capability to print physical copies on demand.
- Backup implementation: Regulatory frameworks increasingly require systematic backup protocols for archived invoices in different cadences. Indian authorities, for example, mandate regular backups, while Israeli regulations specify quarterly backups stored at separate physical locations to prevent complete data loss in case of disaster.
Country-specific e-archiving complexities
As mentioned before, businesses often overlook the fact that e-archiving regulations can be as diverse and specific as e-invoicing mandates themselves, with each jurisdiction imposing its own distinct set of requirements.
While general requirements are present in almost every country, there are also unique complexities. As requirements differ from country to country, companies will find that certain jurisdictions have more complex and stringent e-archiving rules
Some country-specific e-archiving complexities examples are listed below:
- Italy: Requires a unique formal “preservation process” with an appointed Responsible for Electronic Storage, the creation of a preservation manual (Manuale della Conservazione) and application of qualified electronic signatures and timestamps to preservation packages containing archived e-invoices.
- Philippines: Mandates formal registration of Electronic Storage Systems with the Revenue District Office, including submission of detailed technical documentation and implementation of a specific “indexing system” that ensures all electronically stored documents can be readily identified and retrieved.
- Japan: Imposes strict requirements for guaranteeing the integrity and authenticity of e-archived invoices, offering businesses specific compliance paths. One of such is establishing a formal “e-Invoice Maintenance Guidance” document that clearly defines organisational roles (e.g. Chief Administrator and Processor) and procedures for handling any modification or deletion of archived documents.
Developing a robust e-archiving strategy
Developing and implementing an effective e-archiving strategy presents significant challenges for businesses operating across multiple jurisdictions. With varying retention periods, technical requirements and constantly evolving regulations, organisations often struggle to establish compliant archiving processes that scale efficiently while minimising risk. A well-designed e-archiving approach ensures compliance, optimises operational efficiency and supports business continuity.
To develop an effective e-archiving approach, businesses should:
- Implement centralised archiving governance to maintain consistent compliance across all business entities
- Select a solution that supports the relevant geographic scope
- Ensure proper documentation of archiving systems and processes
- Verify that archived invoices maintain their legal validity with proper signatures and timestamps
- Involve regulatory and legal teams in the strategy development process to ensure all jurisdictional requirements are properly addressed
- Enable appropriate access controls for auditors while maintaining security
Tax audits can occur unexpectedly, requiring immediate access to archived invoices. Businesses should regularly test the retrieval and readability of archived documents and ensure staff understand how to access and present them during audits.
Benefits beyond compliance
Beyond meeting regulatory requirements, a well-designed e-archiving system delivers significant business advantages:
- Reduced risk during tax audits with immediate access to properly maintained documentation
- Lower compliance costs through centralised management of tax documents
- Enhanced data accessibility for authorised parties
- Better preparedness for evolving regulatory requirements
Building your compliance foundation
Implementing a globally compliant e-archiving solution requires careful planning across technical, legal and operational dimensions. Rather than treating e-archiving as an afterthought to e-invoicing, it should be part of the foundation of your compliance strategy.
Sovos eArchiving offers compliant storage across over 60 countries from a single platform, ensuring country-specific compliance and continuous regulatory updates. This approach allows businesses to maintain compliance with constantly evolving requirements via one universal compliant e-invoice archive, regardless of the number of service providers and e-invoicing software solutions a company uses.
As tax authorities worldwide continue embedding compliance into business transactions, a robust e-archiving system isn’t just good practice—it’s essential for business continuity and audit readiness in our increasingly digital tax environment.
