In January 2020, Poland will also introduce the rule that, once a taxpayer transfers payments to an account that is not on the supplier`s whitelist, the recipient is liable for the tax payable with the supplier if the amount transferred exceeds PLN 15,000. The PEF e-invoicing platform, consisting of PEPPOL access points, is used in Poland for B2G electronic invoices. In Poland, the issuance of electronic invoices is voluntary, while recipients are required to receive electronic invoices. Given that 45-65% of all companies in a country are generally public sector suppliers, the above-mentioned European standard should be the driving force behind e-invoicing. Suppliers to contracting authorities are mainly required to provide electronic invoices containing structured data. Invoice formats structured in their pure form, called EDI (Electronic Data Interchange) data, are not human-readable. Recipients must therefore first view structured electronic invoices for internal invoice verification, approval and subsequent archiving. Erika Winston is a freelance writer with a passion for law. Through her company, Personal Touch Edits, she helps lawyers convey effective written messages.
Erika writes regularly for TimeSolv and a variety of other publications. Despite the huge savings potential of digitizing incoming and outgoing invoices, governments are driving e-invoicing. Italy has played a pioneering role in the electronic exchange of invoices in Europe thanks to a recent change in the law: at the latest since 1. As of January 2019, all national invoices in Italy must be issued in a defined electronic format and exchanged via a state-run billing portal (SDI). Since August 2018, the electronic VAT declaration of outgoing invoices is mandatory in Hungary under certain conditions. Another example: by early 2025, the France plans to extend the current B2G e-invoicing mandate to B2B electronic invoices. Outside Europe, India is introducing a new reporting system that will become mandatory for e-invoicing in India from 1 April 2020. Some email systems reject our invoices on the grounds that they contain a virus or have undefined content. The PDF files we send do not contain viruses. PDFs are designed not to contain viruses anyway (although it doesn`t hurt to make sure your reading software is up to date).
It is your decision to refuse the email and is basically no different from receiving an invoice by mail but rejecting it due to the color of the envelope. The invoice is always issued and must therefore be paid. Preparation: After receipt of the invoice, the contents of the invoice are transferred to an internal standard. Electronic invoices that already contain structured data are converted. Scanned paper invoices and PDF invoices are identified and extracted using OCR/OCR software. From April 2020, the European e-invoicing standard will apply as the acceptance and processing of electronic invoices will become mandatory for the public sector and for all B2G transactions. You can choose to create your own general message to send with all invoices, or you can customize it at the question and customer level. There you can create the most individual messages, including individual details about the progress of the case. Before you start sending electronic invoices to customers, you should consider the following: THE European Standard 2014/55 regulates e-invoicing for public procurement and requires that more than 300,000 public administrations in EU countries be ready from November 2018 in terms of systems and from November 2019 in terms of e-invoicing process. However, unstructured electronic invoices shall not be electronic invoices within the meaning of this Directive. The format determines how an invoice (via EDI or XML) can be sent, displayed and accepted. A great advantage of electronic invoices is that they can be read without manual intervention.
In fact, manual data manipulation is even prohibited in some cases. Under the similar but different Italian e-invoicing mandate, all relevant invoices must pass through the Italian tax administration`s e-invoicing platform, Sistema di Interscambio (Sdl). Sdl verifies in real time that the correct tax is levied on each taxable transaction and adds a digital signature to approved invoices. In most cases, Sdl then makes the invoice available to the buyer, but in some circumstances sends it to the supplier for transmission to the buyer. The France plans to extend the current B2G e-invoicing mandate to B2B e-invoices by early 2025 The digitization of incoming invoices increases the quality of processing through the prevention of manual errors. Our data collection also shows that using e-invoicing can reduce costs by up to 85% from just 12,000 incoming invoices per year, compared to conventional manual invoice processing. Processing rules: Regulatory countries require that invoices be paid to companies in the respective country through an intermediate regulatory authority, so that, among other things, real-time checks are possible. These real-time controls typically include digital signatures.
For example, the approval rule is applied in Mexico, Brazil, Italy, Turkey, Portugal, Spain and Hungary.