E invoicing, results of the expert group on e-invoicing


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E invoicing, results of the expert group on e-invoicing

  1. 1. Results of the Expert Group on e-Invoicing Bo Harald Chair EC Expert Group on e-Invoicing Electronic invoicing in Europe – Madrid, 27-28.4.2010 State Secretariat of Telecommunications and the Information Society
  2. 2. Expert Group on e-Invoicing - Mission Defined in Commission Decision of 31 October 2007: § Identify shortcomings in current regulatory framework § Define e-Invoicing business requirements § Address relevant e-invoicing data elements (and linkages) § Propose responsibilities for standardisation bodies and time schedule § Propose a European e-Invoicing Framework - a common conceptual structure
  3. 3. Definition and components of the European e-Invoicing Framework
  4. 4. Results 1. Awareness of fundamental importance of e-invoicing for: - Competitiveness of EU enterprises - Cost savings in public sectors - Service innovations - Learning 2. Recommendations 3. Next layer visibility - e-Invoicing is not dematerialization only – but an enabling platform for automating administrative processes at large – a new paradigm
  5. 5. Reasons for fast adoption 1. Value of information in structured form apparent 2. Productivity improvement potential – 250bn > business case for service providers and customers (Deutsche Bank Research report – 54bn€ pa in Germany alone) 3. Demographic challenges – liberating for more productive work much needed
  6. 6. Dilemma nbr 1: EU workforce nose-diving 2020 Digitalization key to automation. Productivity 35 million improvement potential 250bn with e-invoicing smaller Automation liberates much needed resources for productive work 25 m large r Automation leads to real time completion of processes 6
  7. 7. Reasons for fast adoption 4. SME-opportunities - “eliminating” half of administrative cost – less economy of scale disadvantages of being small - becoming integrated e-parts of value chains - improved cash flow, cheaper financing and real time visibility 5. Very large savings and service improvement potential in public sector
  8. 8. Reasons for service ramp-up 1. Massive cost savings and service improvement – income potential for service providers – business case for investments 2. Innovation platform for further layers of services 3. Reasons for building the network – key to win- win 4. Reasons for taking responsibility for Society at Large
  9. 9. 2. Key Recommendations Progress made 1: Meet the needs of SMEs as a priority focus. Banking sector could do more 2: Harmonise and clarify the legal and VAT framework based on equal treatment of paper and electronic. VAT-directive for equal treatment 3: Maximise interoperability and reach. Much work needed 4: All actors to adopt a common invoice standard and data model- the UN/CEFACT CII v.2. Great progress in ISO 5: Establish an organisational process for implementation of the EEIF. EC to establish PAN-EU Multi stakeholder Forum and recommend member states to do same 6: Widely promote and communicate the benefits. Much work needed in SME and public sector
  10. 10. Time for EU to address the needs of SMEs • Small enterprises cannot afford to invest in advanced ERP systems • Small enterprises cannot afford to communicate in x number of standards to their counterparts • Small enterprises cannot afford to support connectivity to x number of counterparties • Service providers should take all this in account – provide the simplest interfaces
  11. 11. 3. Vision and next stages • E-invoicing becomes predominant within 5-8 years, in some countries earlier. • Harmonised and clear legal environment will exist across the EU. • Trading parties have wide choice of convenient solutions and services- bilateral, 3-corner and 4-corner models in use. • Standards adopted based on single data model- UN/CEFACT CII. • Investments made in ERP and supply chain systems and in low cost and user friendly solutions. For SME’s no investment in IT solutions or IT skills needed. • Expected dematerialisation of other processes.
  12. 12. More than dematerialization – cutting administrative costs in all dimensions Very important to demonstrate full potential for SMEs: 1. Automated accounting 2. Automated and real time cash flow estimates 3. Automated and real time VAT 4. Automated invoice financing 5. Automated and unified reporting to public sector All achieved by moving to e-invoicing.
  13. 13. Target: Cut enterprise administrative cost in half v Build on DG Enterprise 25% target by 2012. 50% suitable next target for EC, Member state and MSH Forum. How soon? 2014? v This would speed up migration to e-invoicing and make it voluntary (deadlines for unstructured invoicing and transparent pricing still needed) v Corresponding cost saving and fraud elimination targets could also be set for report handling and supervision in public sector
  14. 14. Summary • E-invoicing is just one step – but the foundation for wide scale automation of administrative processes • SMEs should be given more time for business – less for administration • Cutting administrative costs in half is possible • If we start now we may be ready by the time work force shortage sets in in earnest • The questions to ask: • Are we helping enterprises – aggressively enough? • Is the public sector acting in a model role • Should this not be the next milestone for the Single Market?