General Categories of E-Invoicing Models

Important: local regulations determine these models. Always confirm which model applies in each country where you issue invoices.

e-invoicing mandates vary by country, and tax authorities may require different reporting or clearance processes. The Avalara ELR integration in Maxio supports multiple compliance models. Understanding these models enables you to configure mandates accurately for your customers and regions.

Four-corner model

In the four-corner model, the seller sends invoice information to their service provider. The service provider converts the invoice into the required e-invoice format and forwards it to the buyer's service provider, which then delivers it to the buyer.

• Tax authorities are not directly involved in this flow.
• VAT or GST reporting occurs periodically, not at the time of each transaction.

Real-time reporting model

In a real-time reporting model, the seller must send invoice details to the tax authority in parallel with invoicing.

• After the seller issues the e-invoice to the buyer, the same information is electronically submitted to the government platform.
• The tax authority receives invoice data in real time for compliance monitoring.

Clearance model

In a clearance model, the seller sends the e-invoice to the tax authority before sending it to the buyer.

• The tax authority validates and approves the invoice.
• A unique identification number is added to the invoice.
• The cleared invoice is then returned to the seller and forwarded to the buyer.

Central issuance model

In a central issuance model, the seller submits invoices directly to the tax authority.

• The authority reviews and clears the e-invoice.
• Instead of the seller forwarding it to the buyer, the buyer retrieves the cleared invoice from a government portal.

Maxio's own mandate configuration reflects these categories internally. A mandate you activate is classified against one of these models (or a network standard such as Peppol, which operates on the four-corner model), even though the model name itself isn't shown as a separate field when you configure mandates.