The UOM in invoice directly impacts tax compliance, as regulatory bodies require invoices to include quantity specifications for accurate tax calculations. Incorrect UOM usage can result in miscalculated taxes, leading to potential penalties. Businesses that operate in multiple regions must ensure that their UOM aligns with local tax laws. For instance, some countries may mandate the use of metric measurements, while others use imperial units. Using the wrong UOM can also affect VAT and GST calculations, leading to financial discrepancies. Companies should integrate automated invoicing software that correctly applies UOM to maintain compliance and avoid tax-related complications.