TCG Cloud for Digitalizing PDF and Paper-Based Invoices: The Perfect Bridging Technology to Prepare for the ViDA EU E-Invoicing Revolution

The future of business transactions is about to undergo a revolutionary change due to the European Union’s VAT in the Digital Age (ViDA) project. From 2028, e-invoicing will be mandatory for B2B transactions across the EU, with the goal of completely eliminating paper-based and PDF invoices. In this blog article, we will be taking a closer look at this visionary initiative and highlight the impact on SEEBURGER’s Purchase-to-Pay product. We will also be looking at how best to act in the interim and how companies would benefit from using a cloud-based solution with OCR (Optical Character Recognition) and text recognition technology until 2028.

What ViDA is and the elimination of paper invoices

ViDA is an ambitious project launched by the European Union to make e-invoicing mandatory for B2B transactions across the EU. The crux of this revolution is that from 2028, there will no longer be any paper-based or PDF invoices for B2B transactions. Instead, all invoices will be exchanged in a standardised electronic format supported by ViDA.

Without paper-based and PDF invoices, businesses will no longer need to rely on long-established OCR technology to extract data from physical or digitized paper and PDF documents. The advent of ViDA and the accompanying adoption of e-invoicing will eliminate the need for manual capture and OCR for invoice data within the EU from 2028 onwards.

The advantages of OCR-free e-invoicing

The EU Commission’s ViDA initiative marks a significant development in the field of electronic accounting. Under the proposal to amend the VAT System Directive (VATSystRL) and the corresponding executive order, businesses across the EU are to be required to e-invoice and to digitally report their tax. The desire behind this initiative is to simplify cross-border trade within the EU and increase the efficiency of invoicing processes while contributing to sustainability by reducing paper consumption.

Companies stand to benefit in a number of ways from this move to e-invoicing.

1. Increase efficiency through automation
   E-invoicing lets you almost completely automate the invoice process. Invoices are electronically created, sent, received and processed with no human intervention. This is not only significantly faster, it also eliminates human error, ultimately saving both time and money.
2. Reduce costs and use resources more efficiently
   E-invoicing eliminates the costs of printing, paper and mailing physical invoices. Businesses can also benefit from savings in the storage and archiving of paper and PDF documents. This also saves resources – and money – as well as contributing to sustainability and a lower carbon footprint.
3. Process payments faster
   E-invoicing accelerates payment processing and invoicing. Because invoices are delivered electronically in real time, payment also arrives quicker, resulting in improved liquidity and optimized working capital management.
4. Do business across borders more easily
   E-Invoicing facilitates and drives cross-border trade within the EU, as electronic invoices have a standardized format and are simple to send. Simplifying the invoicing process helps companies enter new markets and to strengthen trade relationships.
5. Sustainability and environmental concerns
   By eliminating physical paper invoices, e-invoicing also makes an important contribution to conserving our environment. By using less paper, businesses automatically reduce their carbon footprint.

Why is it still worth using the TCG process cloud solution for incoming paper and PDF invoices?

A TCG cloud solution gives businesses a number of benefits that will be particularly valuable in the period leading up to 2028, even as OCR phases out as the ViDA e-invoicing deadline draws nearer. Some good reasons why businesses should use TCG’s cloud-based OCR solution include:

• Full integration in SEEBURGER Purchase-to-Pay
  The TCG cloud solution integrates seamlessly into the SEEBURGER Purchase-to-Pay software, simplifying and streamlining the implementation and use of the OCR, extraction and self-learning technologies for businesses. At the same time, integration enables smooth data exchange and fluent processing of e-invoices within the Purchase-to-Pay workflow. Businesses benefit from a holistic solution that covers all aspects of e-invoicing, including the processing of unstructured invoices sent by email or in paper form.
• Scalability
  Cloud solutions provide the flexibility needed to meet changing business needs. As paper and PDF invoices disappear, the need for OCR-based processing may fluctuate. TCG’s cloud solution can be easily scaled to meet requirements at any given time. Organizations don’t need to worry about purchasing additional hardware or holding capacity for future requirements. The scalability of the cloud solution lets you use your resources efficiently and ultimately saves you money.
• Full EU coverage for text and item recognition
  The TCG cloud solution is notable for the comprehensive range of EU languages and formats it supports. As the ViDA initiative envisages e-invoicing to be introduced in all EU countries, it is important that you have software capable of supporting the specific requirements and formats of each country. TCG’s cloud solution includes a wide range of country modules that let you recognize and process paper-based, PDF and electronic invoices in the languages and tax systems of the individual EU countries.
• Cost efficiency:
  Adopting a TCG cloud solution does not require substantial changes in IT infrastructure and the associated outlay. Instead, organizations can deploy the OCR capabilities, item recognition and the automatic verification rules as a pay-per-use service, paying only for the resources they use. This pay-as-you-go model helps businesses with more precise cost planning/control, and saves unnecessary expenditure on unused capacity. TCG’s cloud solution offers a cost-effective way to use e-invoicing and OCR processing for incoming invoices without a large initial outlay.
• Automatic updates
  A cloud provider, TCG provides regular updates to ensure your software continues to run smoothly and stay secure. This means that companies have an up-to-date product without the corresponding workload. TCG’s cloud solution is continuously improved and updated to ensure optimal performance and security. Companies can rest assured that the TCP solution is always updated to the latest standards without needing to dedicate internal resources to maintenance.
• Higher OCR quality through the TCG Cloud
  OCR has long been established as an important technology for capturing data from physical documents. However, the accuracy of OCR has often left a lot to be desired, especially when dealing with poor quality originals or intricate fonts. This led to manual corrections and the increased workload often negated the advantages of automation. A cloud-based OCR solution makes it far easier to address and overcome these challenges. TCG Process GmbH has powerful computing resources and combines OCR technology with state-of-the-art extraction and automated checking rules that lead to greater accuracy and efficiency in data processing. Invoice data can be processed in the cloud in real time or at short intervals to ensure prompt processing. Moreover, the cloud solution draws on integral machine learning and artificial intelligence to continuously improve the accuracy of data results and adapt to a company’s specific needs.
• Greater data accuracy through automation
  An automation product such as TCG’s cloud solution makes manual data entry and the inevitable errors a thing of the past. Equipped with features such as automated data entry, reconciliation with master data and a range of checking rules and processes, the TCG cloud solution delivers higher accuracy, and more consistent data.
• Stronger security in the cloud
  One essential consideration when deciding on a cloud solution is the security of your corporate data. Companies need to ensure that their data is well protected in the cloud and secured against unauthorized access. You therefore want to be sure that you are dealing with a trustworthy and reliable cloud provider. Reputable providers such as TCG implement strict security measures such as encryption technologies, access controls and regular security audits. Indeed, cloud infrastructure can often offer even higher security standards than many on-premises systems, as cloud providers tend to invest in security experts and the latest technology to protect their services.

TCG Process GmbH’s cloud solution combined with the SEEBURGER Purchase-to-Pay solution gives companies a tailored, future-proof solution for a smooth transition to e-invoicing. With full, seamless integration into the SEEBURGER Purchase-to-Pay solution, scalability, cost efficiency, and automatic updates and maintenance, TCG is a trusted choice for businesses looking to prepare for the pan-European ViDA and e-invoicing initiative. The cloud solution enables businesses to reap the benefits of the e-invoicing revolution without needing to worry about any technical challenges on the way.