FIRS: APPs and SIs

Summary:

Access Point Providers (APPs) and System Integrators (SIs) form the backbone of the FIRS digital tax compliance ecosystem.

SIs generate Invoice Reference Numbers (IRNs) and retrieve invoice details.

APPs perform more functions in the FIRS e-invoice flow like: checking, submitting, validating, and transmitting.

Introduction to APPs and SIs

Access Point Providers (APPs) and System Integrators (SIs) form the backbone of the FIRS digital tax compliance ecosystem, facilitating efficiency, compliance, and security in both local and international business operations.

Access Point Providers (APPs)

Access Point Providers are intermediaries in the FIRS e-invoicing ecosystem responsible for securely transmitting e-invoices and other tax-related data between businesses, their trading partners, and the tax authorities. They act as the “gateways” for data exchange, ensuring that the invoices reach their intended recipients efficiently, securely, and in compliance with regulatory standards.

Key Roles of APPs:

1. Secure Data Transmission
   APPs encrypt and transmit e-invoices to ensure data integrity and confidentiality during the exchange process.
2. Real-Time Exchange
   APPs facilitate instantaneous communication between trading parties and tax authorities, allowing for real-time verification and processing.
3. Interoperability
   APPs ensure compatibility with different systems, including tax authority platforms like FIRS or KRA, and international frameworks like Peppol.
4. Compliance Assurance
   They validate that the e-invoices meet the necessary local and international regulatory standards before transmitting them.
5. Facilitating Cross-Border Trade:
   APPs enable businesses to engage in international transactions by aligning with global e-invoicing protocols.

System Integrators (SIs)

System Integrators are responsible for integrating the business’s internal systems, such as ERP (Enterprise Resource Planning) or accounting software, with tax authority platforms through compliance with e-invoicing regulations. They ensure that the business’s infrastructure is configured to generate, digitally sign, and transmit e-invoices seamlessly.

Key Roles of SIs:

1. ERP and System Configuration
   SIs set up and customize the business’s internal systems to align with tax authority requirements, ensuring smooth data flow from invoice generation to submission.
2. Digital Certificates and Device Registration
   They manage the acquisition of digital certificates and registration of devices to ensure secure communication with the tax authority.
3. Compliance with Standards
   SIs ensure that the business adheres to local and international standards, such as UBL (Universal Business Language), Peppol, and any specific formats mandated by the tax authority.
4. Data Validation
   They validate invoice data to ensure it meets regulatory requirements before submission, reducing the risk of rejection or penalties.
5. API Integration
   SIs integrate tax authority APIs into the business’s systems, enabling automated and seamless data exchange for tax filings.

Key Differences Between APPs and SIs

Collaboration Between APPs and SIs

In practice, APPs and SIs often work together to deliver a seamless e-invoicing experience.

• APPs ensure secure transmission, while
• SIs enable the business’s systems to produce compliant e-invoices ready for submission via the APPs.

And this is how, together, they form the backbone of the digital tax compliance ecosystem, facilitating efficiency, compliance, and security in both local and international business operations.