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EU Continues to Move Forward With eInvoicing

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It really was way back in 2001 that some European countries and the OECD started to implement and regulate eInvoicing solutions. Since then, and in response to the many different eInvoice formats that were being used, the European Commission decided to introduce a European Standard for eInvoicing.

On March 22, 2017, the European Commission had the final vote on European eInvoicing standard (EN), pursuant to Directive 2014/55/EU on eInvoicing in B2G. EU Contracting authorities and contracting entities are required to support the receipt of invoices in the following approved standard syntaxes: 

  • UBL v2.1- ISO/IEC 19845:2015 / OASIS Universal business language
  • UNCEFACT/CII - UN/CEFACT Cross Industry Invoice XML

 

GHX European Compliant invoicing solution provides support for both the European eInvoicing standard (EN), as well as market specific formats for electronic invoices such as FacturaE in Spain or ZugFeRD in Germany –  compliant eInvoicing anywhere in Europe, anytime.

Recently, France, Italy and Spain have progressed on making eInvoicing mandatory for public procurement (B2G transactions), as well as looking ahead to further make use of the eInvoicing for the private sector (B2B and potentially B2C transactions).

Countries across Europe are adopting the EU Directives and are at different stages. We help our customers through the complexities and ensure our solutions are future proofed and remain compliant.

Spain

SII regulations live as of July 1, 2017

On 2 December 2016, the Spanish Official Gazette published the Royal Decree 596/20016, for the modernisation, improvement and promotion of the use of electronic means in the management of Value Added Tax, known as the Immediate Provision of Information (SII) in VAT.

The Spanish State Tax Administration Agency (AEAT) is now in the process of rolling out the new SII system, starting with a pilot project to test this new model of electronically reporting VAT with companies and suppliers involved in the implementation of the SII system.

As of July 2017, in its initial phase, SII will be compulsorily for over 62,000 companies that currently have to self-assess VAT monthly:

>        Large companies (turnover more than € 6,010,121.04)

>        VAT groups

>        Taxpayers registered in the monthly VAT refund regime Registered in the  

    REDEME

Italy

Update on eInvoicing for B2B/B2C

As of January 2017, the Interchange data system (SDI) service used for submitting electronic invoices for the B2G sector became available for B2B transactions, on a voluntary basis, if suppliers adopted the submission of eInvoices.

Following on, the Presidential Decree no. 633/72, Italian tax authorities are also facilitating the eInvoicing process for B2B and B2C transactions. On a voluntary basis, the taxpayers that submit and record invoices via electronic means are given certain benefits in relation to their tax obligations. The Italian tax authorities will handle the VAT refunds of those taxpayers, as a matter of priority within three months from the submission of the annual VAT return.

The Italian authorities have also started to consider broadening the range of actions to combat VAT fraud and have introduced a mandate for electronic invoicing in the B2B sector. Preparations have also been started and they have also declared the intention to open talks with Brussels on the matters.

Germany

In July 2016 the German Ministry of Internal Affairs (BMI) drafted new legislation to transpose the EU Directive 2014/55/EU into German legislation, where according to the draft legislation the invoices need to be transmitted and received in a structured electronic format (eg XML).

The hybrid ‘ZUGFeRD’ format is expected to meet the requirements on the condition that in addition to the graphical component the invoice shall contain all required data in a structured form.

According to recent research carried out by ibi research, despite growing awareness of eInvoicing in Germany, the main driver for adoption is cost reduction.

With many businesses still unsure about the legal requirements, under half of the research group felt they had sufficient knowledge about eInvoicing. With the German FeRD being the representative to the European Multi-Stakeholder Forum for electronic invoicing, and with large number of businesses completely unaware of the EU initiative, the regulatory bodies have a huge mountain to climb before they see the 90% market penetration currently achieved by Brazil.

Using GHX European Compliant invoicing solution, with just a single connection, your business can issue and send compliant invoices. No matter what EU country, the order volumes, the ERP, or even the format. It meets local electronic invoicing regulations, and it helps in reducing errors and reduces costs too.