CTC

Framework concept of modern tax control, encompassing clearance and e-reporting.

Definition

CTC denotes the family of mechanisms by which the tax authority inserts itself into the transaction flow: either by validating the invoice before issuance (clearance), or by receiving a declarative data feed (e-reporting / real-time reporting). They stand in contrast to the traditional post-audit model.

Origin

Term popularised by market analyses (notably the Billentis E-Invoicing/E-Billing Report) and taken up in the European Commission's VAT in the Digital Age (ViDA) work.

Example in context

A country moving from post-audit to CTC requires, for instance, each invoice to be sent to a public portal (Italy's SdI, Poland's KSeF) before delivery to the customer.

Related terms

• Clearance model — CTC variant with prior validation.
• ViDA — EU VAT framework generalising CTC.