CEN/ISSS Task 1. EDI and Business Standards

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CEN/ISSS Task 1. EDI and Business Standards

  1. 1. Task 1. EDI and Business Standards Mounir El-Khoury MKEnterprise eInvoicing WS Public Event, Brussels 11 April 2006
  2. 2. Task 1. EDI and Business Standards Task 1.1 European model EDI Agreement Task 1.2 Invoice Core Components Task 1.3 Party and Product identifiers Task 1.4 Standard Codes for clauses included in invoices Task 1.5 Survey on Invoice Data Content eInvoicing WS Public Event, Brussels 11 April 2006
  3. 3. Task 1.1 European model EDI Agreement VAT Directive 2001/115/EC references Commission Recommendation (CR) 1994/820/EC for EDI Definition EDI in CR 1994/820/EC is restrictive, limited to UN/EDIFACT and needed to be brought up to date Old definition of EDI here below and text of CR 1994/820/EC have been revised, See Task 1.1. ‘Electronic data interchange is the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message’. eInvoicing WS Public Event, Brussels 11 April 2006
  4. 4. Task 1.1 European model EDI Agreement 2.2. EDI: (Proposed definition is open) Electronic data interchange is the transfer of commercial, administrative and business information between computer systems, using data formats which have been mutually agreed by the parties. Proposed revision and update of document CR 1994/820/EC has been submitted to DG Enterprise, Taxud, Information Society and Open Review No negative comments received Approved by CEN Workshop eInvoicing WS Public Event, Brussels 11 April 2006
  5. 5. Task 1.1 European model EDI Agreement Importance of this revision: To open CR 1994/820/EC and not limit it to UN/EDIFACT standards or other standards because new developments are in XML: UN/CEFACT e-public procurement, e-Government, .. GS1, RosettaNet, Eurofer, … In VAT Directive, EDI users may not be required by Member States to use AES or QES for eInvoicing if they meet requirements of authenticity and integrity eInvoicing WS Public Event, Brussels 11 April 2006
  6. 6. Task 1.2 Invoice Core Components Task 1.2 : To submit the invoice data content details identified in the VAT Directive for the creation of the relevant UN/CEFACT Core Components Work progressing according to UN/CEFACT: Core Components Technical Specification Submission rules and procedures (Lengthy) TBG17 Harmonisation with other submissions
  7. 7. Task 1.2 Invoice Core Components UN/CEFACT eInvoice BRS (Business Requirements Specification) and RSM (Requirements Specification Mapping) already approved by UN/CEFACT Available on UN/CEFACT TBG1 Supply Chain and Procurement Website http://webster.disa.org/cefact-groups/tbg/wg/tbg1_main.cfm Core Components of the invoice will be available by May 2006 UN/CEFACT ebXML schema of the Cross industry invoice will be published in October 2006 eInvoicing WS Public Event, Brussels 11 April 2006
  8. 8. Task1.3 Party and Product identifiers VAT Directive requires Invoices to have: Name and address of parties Description of product or service But most present day eBusiness communities are using coded identifiers for Parties and Products; (automotive, retail and distribution, electronics, chemical …) Descriptive identifiers do not fulfil role of identifiers in eBusiness transactions eInvoicing WS Public Event, Brussels 11 April 2006
  9. 9. Task1.3 Party and Product identifiers Proposed amendment to VAT directive 2001/115/EC to permit coded identifiers: The full name and address and / or a unique coded identification of the taxable person; where necessary the taxable person’s tax representative; and of his customer; The quantity and nature, as a coded identifier and / or description, of the goods supplied or the extent and nature, as a coded identifier and / or description, of the services rendered; eInvoicing WS Public Event, Brussels 11 April 2006
  10. 10. Task1.3 Party and Product identifiers From Survey of Member States (Task 1.5) Member States requiring textual identifiers for name and address be, cy, ee, el, fr, hu, it, li, mt, pt, si, sk, ch Member States permitting coded identifiers instead of name and address (Look up tables to be made available to convert code to text) at, cz, dk, fi, nl, se, uk Member States permitting coded identifiers for Products and Services (Look up tables to be made available to convert code to text) at, be, dk, cz, fi, mt, nl, si, se, uk, ch eInvoicing WS Public Event, Brussels 11 April 2006
  11. 11. Task1.3 Party and Product identifiers Using text identifiers is not satisfactory in eBusiness Look up tables provides full details of Party, product or service Coded identifiers permit details to be picked up in different languages in cross border trade eInvoicing WS Public Event, Brussels 11 April 2006
  12. 12. Task1.3 Party and Product identifiers Examples of party identifiers: Issued by public authorities, e.g. SIRET, SIREN, VAT administrations, .. Issued by international organizations, e.g. GS1 Global Location Number (GLN), D&B Dun’s number, IATA, … Mutually agreed Identifiers by the trading partners, e.g. Seller’s party identifier, buyer’s party identifier, eInvoicing WS Public Event, Brussels 11 April 2006
  13. 13. Task1.3 Party and Product identifiers Example of Product and service identifiers: Identifiers issued by international organizations GSI - GTIN Global Trade Item Number (GS1) Digital Object Identifiers IATA FIATA Identifiers issued by public authorities National Health Service, National Drug Code, Identifiers mutually agreed by trading partners eInvoicing WS Public Event, Brussels 11 April 2006
  14. 14. Task1.3 Party and Product identifiers Requirement by authorities: Parties to maintain ‘Look Up tables’ to provide the clear text equivalence using the identifiers for the period of storage of the electronic invoices (5-10 years) : Name and address of parties Description of product or service eInvoicing WS Public Event, Brussels 11 April 2006
  15. 15. Task1.4 Standard Codes for clauses included in invoices Text clauses inserted in Electronic Invoices for VAT exemptions, Reverse charges, Margin scheme supplies, Intra-community supply of New Means of Transport, etc. create problems; Not electronically processable, contrary to objectives of the Directive 2001/115/EC for electronic invoicing Absence of an agreed pan-European convention creates artificial barriers for cross-border trade Reference to national legislation in cross border invoicing has no meaning in another EU Member State. Problems in cross border ‘Self Billing’ where customer may not know exemptions relevant to his supplier … eInvoicing WS Public Event, Brussels 11 April 2006
  16. 16. Task1.4 Standard Codes for clauses included in invoices CEN Workshop Recommendation: To develop codes to replace plain text clauses to meet the needs of the Invoicing Directive, with regard to “indications” of: Supplies that are Exempt from VAT Supplies that are subject to the Reverse Charge procedure Supplies that are subject to Margin Schemes Intra-Community supplies of New Means of Transport (motor cars) eInvoicing WS Public Event, Brussels 11 April 2006
  17. 17. Task1.4 Standard Codes for clauses included in invoices From survey of member states (Task 1.5), response was very positive to develop a standard code set based on ODETTE’s work; 19 Member States approve proposal for coded representation Portugal still needs to address point Ireland, Coded text not acceptable at present 4 Member States still to respond Several member states request simplification and limiting the number of clauses eInvoicing WS Public Event, Brussels 11 April 2006
  18. 18. Task1.4 Standard Codes for clauses included in invoices Code : AAC Exempt – Article 28c(A) of Directive 77/388/EC Meaning: Exempt Intra-Community supplies of goods. Explanation: To be used when invoicing goods which are delivered from one EC country to another EC country if the customer has a VAT number in another EC country. eInvoicing WS Public Event, Brussels 11 April 2006
  19. 19. Task1.4 Standard Codes for clauses included in invoices Next Steps: a) Get formal approval of the code list from interested parties User groups Member states VAT administration EU Taxud b) Submit approved code list for official translation into Member State languages c) Prepare explanatory documentation to support the dissemination of the code list d) Request CEN to take responsibility for maintenance in UN/CEFACT eInvoicing WS Public Event, Brussels 11 April 2006
  20. 20. Task1.5 Survey on Invoice Data Content Survey sent to EU Member States and EFTA to obtain information On: Storage of electronic invoices (dealt later by H. Salmi) Update 2003 survey of data content usage Proposal to introduce codes to replace plain text clauses, already dealt with in Task 1.4 Summary of Survey available in Task 1.5 handout in Section 5, but MS Responses available in electronic version of report Response received from 21 Member States and Switzerland eInvoicing WS Public Event, Brussels 11 April 2006
  21. 21. Task1.5 Response to Survey Invoice Data Content & Storage nl Netherlands at Austria pt Portugal be Belgium si Slovenia cy Cyprus sk Slovakia cz Czech Rep. se Sweden dk Denmark uk United King. ee Estonia ch Switzerland fi Finland fr France el Greece hu Hungary Responses still come ie Ireland de Germany it Italy lu Luxembourg li Lithuania lv Latvia sp Spain mt Malta pl Poland* *Unofficial response eInvoicing WS Public Event, Brussels 11 April 2006
  22. 22. Task1.5 Survey on Invoice Data Content Summary of issues on data content available in Task 1.5 Section 5 Date of invoice: Recommendation: Include date format in electronic invoices using international code set Sequential invoice number: Remark: Some countries only require a unique invoice number. Guidelines provided to form unique sequential number VAT number (Seller and Buyer) Some MS may not require them for certain transaction Some MS only require use of Country Code for intra-community trade Some MS have VAT numbers that differ from agreed form eInvoicing WS Public Event, Brussels 11 April 2006
  23. 23. Task1.5 Survey on Invoice Data Content Party’s full Name and address See task 1.3 Product or service description See task 1.3 Date of supply or payment Some differences between members states Break-down of the Taxable amount per VAT rate or exemption Some differences between member states Quantity or extent Recommend use of Unit of Measure in electronic invoices eInvoicing WS Public Event, Brussels 11 April 2006
  24. 24. Task1.5 Survey on Invoice Data Content Summary No problem for eInvoicing within a member state Business can carry out cross border electronic transactions but differences in MS regulation could cause problems in some situations to trading partners Next Steps proposed: Resolve identified differences in national regulation Develop Common best practice procedures in electronic invoicing to complement the 25 National Guidelines for cross border electronic invoicing, it would help business and SMEs eInvoicing WS Public Event, Brussels 11 April 2006
  25. 25. Thank you Questions/comments? <mounir.el-khoury@pi.be> http://comelec.afnor.fr/cen/wsei eInvoicing WS Public Event, Brussels 11 April 2006

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