Across the world, governments are turning to e-invoicing to modernize tax collection, increase compliance, and combat the informal economy. But while the goals are clear, the path to success is not. Many national e-invoicing initiatives face delays, cost overruns, or limited adoption – not because the idea is flawed, but because the systems are often built from scratch, without tested frameworks, implementation experience, or long-term support structures.
Through years of hands-on experience supporting e-invoicing and fiscalization reforms in a variety of national contexts, NRD Companies’ Tax Solution Implementation Team has developed a deep understanding of what makes these reforms succeed – or stall. Working closely with tax authorities and public institutions around the world, the team has witnessed the risks of fragmented, homegrown systems and the transformative impact of adopting a platform-based approach rooted in co-creation, adaptability, and local ownership.
Instead of building complex systems from the ground up, more governments are now choosing to adapt proven, composable platforms – working with trusted components that can be customized and scaled to fit their specific legal, institutional, and economic environments. This model reduces risk, accelerates deployment, and empowers national teams from the very beginning.
Building from Scratch: High Cost, High Risk
Developing a national e-invoicing system from the ground up might seem appealing – it offers the perception of full control and local ownership. But in reality, many countries face common challenges: long implementation timelines and frequent rollout delays, fragmented implementation approaches, and complex integration with existing systems.
Projects often get stuck in prolonged pilot phases. Government teams must juggle procurement processes, legal reform, technical development, and public communication – often without a proven model to follow. The result? Systems that are outdated by the time they launch, systems that require complete overhaul to proceed from pilot into scale-out or systems which fail to gain traction among taxpayers and service providers.
The real challenge goes far beyond software development. It involves aligning the system with national tax regulation, institutional workflows, public procurement rules, and citizen-facing services – while ensuring that the solution is sustainable and adaptable over time.
A Tested Alternative: VFDMS© as a Composable Solution
Virtual Fiscal Device Management System (VFDMS©) was designed to avoid the pitfalls of custom-built solutions. Rather than imposing a one-size-fits-all product, it provides a core infrastructure that can be adapted and scaled together with the implementing country. Governments don’t simply receive software – they participate in shaping the solutions around their institutional, legal, and market realities, reflecting infrastructure constraints of the countries and taxpayer landscapes.
The platform enables tax authorities to monitor every transaction in real time, improve compliance, and issue secure digital receipts. It’s already in use across multiple jurisdictions, each with different economic contexts, levels of digital maturity, and taxpayer profiles. That adaptability is what makes it powerful.
What makes VFDMS© different is not just the technology, but the method of delivery. Implementation is done in close collaboration with national institutions – from readiness assessments to system configuration, training, piloting, and long-term support. It’s a “holding hands” approach, where technical assistance and institutional ownership evolve side by side.
Building from Scratch vs. Proven Platform
| Category | Building In-House | Adopting Existing Platform |
| Time to Deploy | 3–5 years[1] | Within 6–12 months |
| Cost | High, with frequent budget overruns; cost management completely up to the agency | Predictable fixed costs, with the risk allocation to the implementing partner |
| Risk | High (uncertainty in design, implementation, and adoption) | Low (field-tested system with proven results) |
| Customization | Full control of the solution, but time-consuming and complex | Co-created and tailored to national needs |
| Support and Maintenance | Requires dedicated solution team inside organization, with long-term planning for knowledge transfer, skill levels and technology upgrade planning. | Internal teams trained to manage the system, or support provided by implementation partner, whereas the partner adheres to the service levels agreed. |
VFDMS© reduces the burden, speeds up implementation, and empowers national authorities to focus on results rather than technical headaches.
A Solution That Comes with a Long-Term Partnership
The real value of VFDMS© lies in its co-creation model. Governments are not left to navigate complexity alone – they are supported throughout the entire journey, from initial assessments to implementation and beyond. Even where procurement processes are required, expert guidance and consultancy services are available to help streamline the approach and align it with national priorities.
This collaborative process ensures that the platform integrates smoothly into the broader digital ecosystem – whether it is connected to a broader range of tax information systems, to the national digital identity and/or digital signature system, or to the Customs and other agencies with their respective systems. The result is a system that is modular, secure, and ready to grow with the country’s evolving needs.
By choosing a composable platform, governments retain full ownership of the system while avoiding the burden of building every component from the ground up. They also benefit from tried-and-tested approaches, reducing risks and accelerating progress by learning from other implementations.
Case Studies: Proof Through Practice
The strength of VFDMS© is not theoretical – it has been demonstrated in practice. Lesotho and Zimbabwe are just two examples of countries that have successfully implemented the platform as part of broader fiscal reform strategies.
In Lesotho, VFDMS© was deployed to support the country’s e-invoicing initiative, enabling real-time VAT transaction tracking and improving revenue visibility for the Lesotho Revenue Authority. In Zimbabwe, the system forms the foundation of the Fiscalisation Data Management System developed in collaboration with the Zimbabwe Revenue Authority (ZIMRA), enhancing compliance and helping close the VAT gap.
Each implementation followed a co-creation model, with tax authorities closely involved in adapting the system to national laws, institutional workflows, and technical environments. These projects have delivered measurable results – from streamlined invoicing and enhanced taxpayer engagement to stronger audit trails and policy responsiveness.
More countries are now choosing to adapt rather than build from scratch, and VFDMS© offers a proven foundation that governments can localize and grow with.
Digital Fiscal Reform That Delivers
For tax authorities and ministries that want to move fast without compromising quality, VFDMS© offers a clear path forward. It’s been tested. It works. And it’s ready to adapt.
Instead of designing e-invoicing systems from the ground up, governments can now compose, collaborate, and transform. With VFDMS©, the risk is lower, the return is higher, and the journey is shared – not outsourced.
[1] OECD (2023), Digital Transformation Projects in Tax Administration: Deployment Timeframes and Risks, OECD Publishing.
Ready to explore how your country can compose its e-invoicing future?
Contact us to learn more about VFDMS© and how it’s helping tax authorities around the world accelerate fiscal transformation.
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