In this article we will discuss the 2nd selection criteria of an ASP and that is who owns the service.
Product Ownership
The pre-approved service providers can be segreggated into broad 2 categories relevant to the ownership of the e-invoicing service and infrastructure:
- Owned
- White-labeled
- Leased
In the 1st case, owned, the provider owns the service and is offering it to the taxpayers. It can be either through a subsidiary or on its own.
In the 2nd case, white-labeled, the provider has an agreement with the owner of the service to white label it and offer it to the taxpayers under its own brand.
In the 3rd case, leased, the provider is actually marketing the solution and the service is offered by a 3rd party under the branding of the provider. This is a popular solution used by accounting, tax and audit firms.
Contracting with an ASP having a white label or leased solution carries the inherent risk that the service gets disrupted in case of “partner” disputes due to various reasons like non-payment of fees, service levels etc.
This is a high risk factor and must be examined thoroughly during ASP selection.
uae, e-invoicing, accredited service provider, selection, asp, asp selection, asp selection criteria, peppol
