SERES has released an extensive analysis on B2B electronic invoicing in the European landscape for 2023. The report showcases that various countries are set to integrate e-invoicing into inter-business transactions within the next three years. These include Romania, Poland, France, Greece, Latvia, Slovenia, Slovakia, Croatia, Spain, Germany, and Belgium.
This report explores various crucial aspects such as the current digitalisation initiatives of enterprises, the multiple benefits of electronic invoicing, and the prospective future of mandatory B2B e-invoicing. It specifically highlights the importance of the ViDA Project and the PEPPOL electronic exchange network. One of the key benefits of B2B electronic invoicing is its ability to drive digital transformation.
The main benefits of B2B e-invoicing
- Its ability to drive digital transformation. Serving as a catalyst for the ongoing digital transformation of businesses.
- Streamlining processes by significantly reducing invoicing timeframes.
- Enhancing cost efficiency by alleviating the financial burden of traditional paper-based invoice delivery methods.
- Improving sustainability by reducing the environmental impact of paper consumption and physical transportation (carbon footprint).
- Improving traceability and security is a further benefit. Ensuring efficient and secure management of the invoicing process and payment oversight, this system
- Time-saving benefits by reducing administrative burdens related to invoicing procedures.
- Additionally, it provides greater transparency and accessibility, facilitating clear access to critical information.
- By countering payment delays and mitigating invoice forgery and fraudulent activities in business relationships, this system also helps to reduce errors.
- Preventing errors and improving invoicing and accounting practices is key.
The importance of PEPPOL in B2B e- invoicing
PEPPOL is a crucial network that provides a secure, open, and flexible architecture to accommodate a wide range of tried-and-tested electronic exchange standards used in B2B communications. The network enables businesses to communicate electronically during procurement and invoicing processes, which ultimately improves operational efficiency and cost reduction.
From a citizen's viewpoint, PEPPOL enhances competition in government contracts and improves efficiency through the automation of various processes, resulting in superior value for taxpayers' money. For small businesses, PEPPOL can also lead to increased international market access thanks to its four-corner model, which enables seamless connectivity with any public sector organization or private company within the network.
The ViDA Project: A strategic initiative to reform control of the VAT system
The ViDA Project (VAT in the Digital Age) is a comprehensive range of measures intended to modernize and enhance the VAT system, increase its resilience against fraudulent activities and promote digitization.
The ViDA framework is based on three fundamental pillars:
- A state-of-the-art real-time digital information system supported by electronic invoicing.
- A revised Value Added Tax (VAT) regulatory framework that caters to the platform economy is in the works.
- The creation of a consolidated VAT register is also underway.
It is noteworthy that electronic invoicing is set to become mandatory beginning January 2024, without requiring the approval of the European Union. The complete implementation of this regulation is scheduled for 2028.