Decentralised CTC and Exchange (DCTCE)

DCTCE is the continuous tax-control model that separates exchanging the invoice from reporting it to the tax authority.

Definition

The Decentralised CTC and Exchange (DCTCE) is a Continuous Transaction Controls model in which the electronic invoice travels directly between trading parties, typically over an interoperability network such as PEPPOL, rather than through a central platform operated by the state.

Alongside this exchange, a subset of tax-relevant data is transmitted to the administration, either by the network's access points or by the parties themselves.

How it works

DCTCE most often relies on a five-corner model: sender, sender's access point, receiver's access point, receiver, and a fifth flow to the tax administration.

• The invoice flows end to end between the parties, with no blocking pre-validation by the state.
• Key data (amounts, VAT, identifiers) is reported to the tax authority at or shortly after issuance.

Good to know

DCTCE is the architecture favoured by the EU's ViDA (VAT in the Digital Age) reform, because it preserves cross-border interoperability and competition among service providers.

It contrasts with the centralised clearance model, where the state validates each invoice before it can reach the customer.