- By Robbe Steynen
E-invoicing requirements for Belgium become mandatory. Read all about it!
- 6 Minutes
SAP Document & rEPORTING COMPLIANCE
SAP DRC for E-Invoicing & Tax Reporting
What is SAP DRC?
As governments worldwide enforce real-time tax reporting, e-invoicing mandates, and digital compliance frameworks like ViDA (VAT in the Digital Age), businesses must adapt quickly to avoid penalties, reporting errors, and operational risks. Compliance is no longer just a legal requirement—it’s a strategic necessity.
SAP Document and Reporting Compliance (SAP DRC) provides an integrated, automated solution for managing statutory reporting, e-invoicing, and digital tax submissions across multiple jurisdictions such as SII reporting in Spain, MTD for VAT in the UK, SDI e-invoicing in Italy, CFDI e-invoicing in Mexico, etc.
Seamlessly embedded into SAP ECC and S/4HANA, SAP DRC supports the different e-invoicing models with direct connectivity to government portals through SAP BTP and PEPPOL technology for 4-corner (and future 5-corner) models, ensuring secure, real-time data transmission and full regulatory compliance without disrupting your core operations.
At PIKON, we deliver end-to-end SAP DRC implementations tailored to your business needs. Our expertise ensures that compliance becomes an automated, scalable, and efficient part of your business processes—minimizing risk, reducing manual effort, and keeping your business ahead of evolving e-invoicing and tax reporting regulations.
What are the benefits of SAP DRC?
Only standard solution for ECC and S/4HANA
One automated solution for global compliance
User-friendly SAP eDocument Cockpit
Secured data exchange with Tax Authorities
Solution adaptable to your specific processes
100% compliance on the long run
Data exchange with the government via SAP BTP and via Peppol
SAP DRC’s offering is two-fold, tailored to meet the legal requirements of different countries. For Peppol countries, SAP provides a direct connection to the government as they are a registered Peppol Access Point, ensuring seamless compliance with local regulations. In contrast, for non-Peppol countries, where a direct connection is not mandated, SAP leverages the Business Technology Platform (BTP) to facilitate required integrations and support digital transformation.
SAP Business Technology Platform (BTP) plays a critical role in SAP Document and Reporting Compliance (SAP DRC) by providing an advanced integration framework, automated data processing, and regulatory adaptability. As an integrated middleware for e-invoicing, SAP BTP facilitates real-time data exchange between SAP DRC and external tax authorities, ensuring compliance with global e-invoicing and statutory reporting requirements.
Using SAP Integration Suite, SAP BTP standardises, transforms, and validates invoice data before transmission, ensuring compliance with jurisdiction-specific formats and regulations. Furthermore, SAP BTP strengthens security through data encryption, authentication, and access control mechanisms, ensuring compliance with regulatory standards such as GDPR and local data protection laws.
As global tax frameworks evolve (for example with SII in Spain, SDI in Italy and CFDI in Mexico), SAP BTP provides a scalable and adaptable architecture that allows businesses to integrate new compliance mandates with minimal system modifications. This results in optimised compliance management, reduced operational risk, and improved efficiency in SAP DRC implementations.
SAP DRC with Peppol
SAP DRC with Peppol (Pan-European Public Procurement Online) and its established 4-corner model makes e-invoicing straightforward by providing a standardized framework for electronic document exchange. Originally designed for Europe, Peppol is now widely adopted in countries such as Singapore, Germany, and Belgium, enabling seamless transactions between businesses and government organisations. As a certified Peppol access point, SAP allows companies to connect directly to the network, eliminating the need for complex third-party integrations.
Additionally, Peppol is included in the SAP DRC Cloud Edition license, ensuring compliance without requiring separate agreements. Looking ahead, the upcoming 5-corner model aims to introduce more flexibility and connectivity by incorporating additional service providers, further simplifying global e-invoicing processes.
Statutory Tax Reporting with SAP DRC
The DRC solution is designed to go further then only e-invoicing, where large volumes of detailed transactional data need to be submitted to local Tax authorities in realtime or near realtime. It also offers support for various tax reporting requirements across jurisdictions, where only summary data needs to be periodically transmitted to local Tax authorities.
Whether your organization operates in the B2B, B2G, or B2C context, SAP DRC provides a future-proof framework, continuously updated to align with changing tax regulations. The solution supports a wide range of statutory tax reports, including:
- Periodic VAT Returns
- Withholding Tax Reports
- EC Sales Lists
- Financial Statements
- SAF-T Audit Files
- GST (Goods and Services Tax) Reports
- etc.
By automating tax reporting and ensuring efficient integration with local tax authorities, SAP DRC helps businesses maintain compliance, accuracy, and efficiency in an ever-evolving regulatory landscape.
E-Invoicing & Tax Reporting
We are happy to answer all your questions about E-Invoicing & Tax Compliance topics.
How can PIKON support you with your project?
With our Competence Center for Legal Requirements and more than 25 years of experience, we are a strategic partner who ensures that your SAP system and business processes meet different country-specific legal requirements all over the world.
The SAP Document and Reporting Compliance (DRC) solution ensures that your business stays compliant with global, regional and local tax regulations. Our approach at PIKON covers every aspect—from strategic planning and implementation to ongoing compliance support. With one integrated solution, you can manage country-specific requirements efficiently while staying adaptable to future changes.
Explore how with every step of the project, we support you towards the transition to SAP DRC and guarantee long-term compliance success for your business.
FAQ´s of SAP DRC
SAP DRC stays up to date with local compliance regulations through regular updates via SAP OSS Notes, ensuring continuous adaptation to legal changes and long-term compliance.
Yes, SAP DRC is fully compatible with SAP ECC and SAP S/4HANA, ensuring integration with your existing ERP system and easy migration to S/4HANA.
SAP DRC generates various reports, including VAT-related reports, e-invoicing submissions, transport registrations, and real-time tax reporting for compliance with country-specific regulations.
SAP DRC integrates with SAP Fiori through applications like Manage Document and Reporting Compliance, enabling users to create, process, and monitor electronic documents and statutory reports within a unified interface.
The implementation follows a structured approach, including requirement analysis, system configuration, data integration, testing, and user training. SAP DRC is deployed within SAP ECC or S/4HANA, ensuring compliance with country-specific tax regulations.
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