If there is an order reference to an incoming invoice, the invoice can be booked fully automatically. Printing and shipping costs are eliminated, invoices can be delivered faster and errors in incoming invoice processing are reduced. The main advantage of e-invoicing lies in the enormous cost savings. Outside of Europe, India introduced a new mandatory reporting system for e-invoicing in April 2020. Also, France plans to extend the current B2G e-invoicing mandate to B2B e-invoices by 2025. Since August 2018, the electronic VAT Reporting of outgoing invoices has been mandatory in Hungary under certain conditions. Italy has taken a pioneering role in the electronic exchange of invoices in Europe through a recent amendment to the law: as of 1 January 2019, all domestic invoices in Italy must be issued in a defined electronic format and exchanged via an invoice portal (Sdi) run by the state. The easiest way for the EU member states to do this is by requiring companies that operate within their national borders to provide all invoices electronically and, as is already the case in some countries, to report either the entire invoice, or at least the VAT information, electronically to the tax authorities in real time. Nevertheless, e-invoicing will become widely accepted in Germany, and companies are advised to equip themselves with digital solutions for e-invoicing.Īgainst the backdrop of tight national budgets and slowing economic growth, the motivation in the EU member states to actually collect more of the expected tax will continue to rise. The southern and eastern EU countries, such as Italy, Spain, Croatia and Hungary, are outpacing Germany in the implementation of the European Directive 2014/55/EU. Germany is by no means one of the pioneers when it comes to e-invoicing. The prediction is that this trend will continue and the number of paper invoices and PDF invoices will be reduced to a bare minimum. Structured and hybrid invoice formats now account for more than 50% of invoices. Whereas in the European Union in 2017, 70% of all invoices were still exchanged on paper and 22% in the form of PDF files that cannot be processed electronically, the tide has been turning. The European Commission has already done everything necessary to encourage the move away from paper invoices by gradually making e-invoicing mandatory. "It's difficult to make predictions, especially about the future." This quote by Mark Twain also applies to e-invoicing, except that it is a matter of "when” and not “if” electronic invoicing will replace paper invoicing on a large scale. The following figure shows, for example, a ZUGFeRD invoice containing a human-readable PDF with structured invoice data in an XML format. Technically, this can be achieved by embedding an XML structure in a PDF file. Hybrid invoice formats avoid this disadvantage by combining the machine-readable structured format and the human-readable visual representation. Recipients must visualize structured electronic invoices for internal invoice verification, release and subsequent archiving. Structured invoice formats with Electronic Data Interchange (EDI) data are not readable by humans. Businesses expect to receive electronic invoices in a structured format that can be understood automatically. Sending invoices as PDF files does not meet these requirements, because the recipients cannot automatically process PDF files. Source (translated): §4a Para.2 German EGovG the format enables the invoice to be processed automatically and electronically. it is issued, transmitted and received in a structured electronic format andĢ. In response to the European Directive 2014/55/EU the legislator defines an electronic invoice in the Act to promote electronic government (E-Government Act - EgovG) as follows:ġ. Since then, electronic invoices have been sent without an electronic signature and, for example, by email. Due to this, German legislation has placed the electronic invoice on an equal footing with the paper invoice (01 July 2011). Such an invoice process is complex, expensive and not environmentally friendly due to the use of paper and transportation resources. It is not very efficient to print, envelope, stamp and send a digital invoice on paper only to have it manually captured and digitized again by the recipient before it can finally be paid. Invoices received in paper form and converted to electronic formats do not fall under the definition of electronic invoices under the VAT Act. The available transmission/reception channels include email, DE-Mail, computer fax, fax server, web download, Peppol or web service. invoices in PDF, TIF, JPEG, Word format or email text) An electronic invoice is an invoice that is issued, transmitted and received in an electronic format.
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