European Multi Stakeholder Forum on Electronic Invoicing Legal interoperability of electronic invoices - from compliance to best practice"

Stefan Engel-Flechsig

Overview
European Multistakeholderforum on eInvoicing General Target: Best Possible Solution for eInvoicing Legislation, Technology & Standards on eInvoicing What is Needed Next Steps

European MSF
Installed by the EU Commission Following the communication 2010 on electronic invoicing and the change of VAT legislation from 2010 With delegates from 27 member states plus observers from Croatia and business associations Launch meeting in September 2011, meetings in March and September 2012 4 working groups: awareness, best practices, legal issues, standards Interim reports approved in last Plenary Meeting, 26th September 2012 http://ec.europa.eu/enterprise/sectors/ict/einvoicing/benefits/invoicing_forum_en.htm

Overview on Activities of EU MSF

Activity 1: Monitoring e-invoicing uptake in Member States In accordance with the Commissions objective to make e-invoicing the predominant method of invoicing by 2020, the EU Forum should provide the Commission with an overview on e-invoicing adoption across EU Member States Activity 2: Exchange of experience and good practices The EU Forum should identify good practices which have proven to favour the uptake of e-invoicing at national level. This benchmarking exercise should also cover the conditions for successfully replicating the approach in other Member States. Activity 3: Propose appropriate solutions for remaining cross-border barriers The EU Forum should identify, analyse and recommend policy options and initiatives to solve remaining cross-border barriers to the exchange of e-invoices. Activity 4: Migration towards a single e-invoice standard data model The EU forum should discuss the co-existence of various e-invoice standard data models, their convergence towards the standard model recommended in the Commission Communication (UN / CEFACT CIIv2), and potential implementation guidelines
.

Overall Target: Best Possible Solution

It should be possible to use the same electronic invoice as regards its content, format and process
in all European Member States, In all European industry scenarios, be it large or SME based, without any changes to be adopted as regards format, content and processes, In private as well as public business processes, independent of which service provider or third party is involved.

AND:
including all relevant business processes like bookkeeping, accounting, archiving and tax evidence

Legislation, Technology & Standards

All three areas must be considered in order to achieve the best possible solution Legislation has strongly influenced the development of electronic invoices:
VAT Directive 2001 has defined electronic invoice and its content for the first time; VAT legislation is of major concern for VAT subjects for their VAT return; Legislation is also influencing accounting, bookkeeping and archiving of business documents

Technology has strongly influenced the legislation:

Electronic signatures, EDI, other options; Formats to be used to incorporate legal requirements, e.g. archiving;

Standards have been developed in order to achieve common understanding:

UNCEFACT CII; CEN Workshop agreements; Best practices identified.

What else is Needed ?

Enlarge perspective from electronic invoicing to electronic business processes:
Invoice is just at the beginning and the end of a complex business process; Electronic invoice may be too narrow to judge the complexity of issues;

Develop vision for the complete process rather than just electronic invoices:
Link the various steps on electronic business processes; Consider all issues including e.g. bookkeeping, archiving and accounting;

Create a strategy for the whole business process:

Connect the various initiatives on national and European level; Define strategy with end-users rather than service providers.

THIS IS NOTHING NEW, BUT WE NEED TO BUILD IT WITH GREATER FOCUS !

Best Possible Solution Where Are We ?

Legislation:
VAT changes are about to take place on 01.01.2013; Need to tackle legal environment (archiving, accounting, bookkeeping); Should not block electronic invoice;

Technology:
Adapt to standard formats and processes; Create interoperable solutions;

Standards:
Intensify standards dialogue across different organisations and EU member states; Continue with exchange of best practices; Develop exchange on the user-community; Support best practice, e.g. e-Invoice-gateway.

Thank you !

Contact: Stefan Engel-Flechsig stefan@engel-flechsig.de