What Are Continuous Transaction Controls and How Do They Change Financial Processes?

Imagine a world where tax compliance is seamless, fraud is minimized, and companies operate transparently. There’s no room for error, manipulation, or misinterpretation. Welcome to the realm of continuous transaction controls, revolutionizing the way we manage financial transactions.

Are you preparing to switch to e-invoicing to meet CTC requirements in the country where you do business? Read our article and discover that there are also business benefits associated with it.

What are CTCs?

Continuous transaction controls (CTCs) describes mandatory transaction data reporting (e.g., invoice data) and verification by tax administrations via electronic invoicing or transaction listings in real time or near real time.

With CTCs, tax authorities can gather data on business processes directly from a company’s management system, allowing comprehensive records to be used for VAT compliance checks.

Other primary objectives of CTC controls include:

  • Combating tax evasion
  • Improving tax collection
  • Reducing fraud

Continuous transaction controls and tax compliance

With CTCs, a tax administration can gain insight into transactions liable for taxation more accurately and in a more timely manner than by using other methods. The implementation of such a settlement model contributes to reducing the VAT gap between the expected VAT and the amount actually collected.

Continuous transaction controls enable tax authorities to monitor business activities actively, ensuring a comprehensive overview of local tax obligations. The continuous aspect of CTCs reduces discrepancies between VAT reporting and payments.

Countries implementing CTC centralized and decentralized models

Continuous transaction controls in centralized models are already required in many countries, such as Mexico and Chile. There, businesses have to clear invoices via a tax authority platform before sending them to the buyer. Countries such as Guatemala and Panama have adopted their own version of the CTC clearance model. Now, more and more European countries are following the success of CTC solutions in Latin America. Italy, Poland and Romania have decided to operate in this model, where taxpayers do or will soon exchange invoices with government platforms in the clearance model.


Starting July 1, 2024, France will require e-invoicing and e-reporting for all B2B transactions (including international) and B2C. To generate and exchange electronic invoices, businesses will have to utilize either a central e-invoicing platform or connected service providers. The situation in France is interesting because, if the taxpayer decides to connect directly to the government platform (PPF), this form of invoice exchange can be described as centralized CTC. However, if the exchange of invoices takes place through a certified provider (PDP), we will be dealing with a decentralized CTC model. The operating models of CTCs in Spain, Belgium and Germany will likely look similar.


In 2018, Hungary introduced a real-time invoice reporting (RTIR) CTC model. This requires every taxable entity to report data from each invoice to the National Tax and Customs Authority’s online platform.

In the RTIR model, e-invoicing is not strictly regulated. However, the supplier must promptly report a portion of the invoice to the tax agency in a predefined format shortly after issuing and delivering it to the buyer. The tax agency validates each transaction and either accepts or rejects it.


Since 2020, B2G e-invoicing has been mandatory at the federal level in Germany, and many federal states have already implemented it. Currently, B2B e-invoicing remains optional, but the country intends to introduce a CTC model in 2025. In 2022, the German government applied for permission from the European Commission to introduce mandatory electronic invoicing as a means to combat VAT fraud.

Peppol CTC model

Peppol is a global network facilitating the electronic exchange of documents. While many countries do not use it widely, Sweden, Finland and Norway are examples of those which have decided to adopt it as general practice. To exchange e-invoices and other forms, taxpayers must utilize a Peppol Service Provider or Peppol Access Point. Continuously enhanced, Peppol aims to become the global B2B transaction standard. Using the four-corner model, the sender and receiver interact with their service providers independently of tax authority oversight.

In Peppol CTCs, Peppol Access Points report transaction data to tax agencies in real time, using official platforms. This model allows business automation and greater control over the economy for tax administration.

Using multiple local providers vs. a single technology partner

Navigating complex tax laws in different jurisdictions can be a challenge for organizations. Therefore, many international companies choose to work with suppliers who offer CTC solutions that guarantee compliance with local obligations. However, it is important to bear in mind that tax administration requirements vary from country to country. The best solution is to use a single, reliable vendor to cover all countries of operation. The right tax technology partner provides the legal monitoring necessary for global VAT and CTC obligation compliance worldwide.

CTCs and Comarch Electronic Data Interchange software

Increased visibility of business transactions can pose a challenge for multinational corporations, making compliance across all jurisdictions where CTCs are implemented difficult. To achieve CTC compliance, focus on implementing functional systems for electronic invoicing, real-time transaction reporting, and data accuracy. Comarch EDI is the perfect solution.

Our robust system is a cloud-based B2B platform that allows you to exchange data with business partners worldwide, quickly and safely. Comarch EDI helps automate and streamline business processes, reducing manual effort and improving efficiency and accuracy in supply chain management and continuous transaction control compliance. Get in touch with our specialists today and stay ahead of CTC compliance obligations.

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