The present invention provides a method, system, and program product for validating invoices for transactions between trading partners that occur across jurisdictional borders such as inter-country or inter-state transactions. Specifically, under the present invention, an invoice corresponding to a transaction between trading partners is electronically received for instance in an invoice processing system. Upon receipt, a purchaser tax jurisdiction and a seller tax jurisdiction corresponding to the transaction will be determined. Based on these jurisdictions and a set of categorization rules, a category of the transaction is determined. Using the category and a set of validation rules, a tax rate indicated on the invoice and other optional aspects, such as whether the invoice contains all required information will be validated. Based on this validation it will be determined whether the overall invoice is valid or invalid.