Bo harald. expert group of e invoicing


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  • Ladies and Gentlemen, I would like to start by thanking our hosts – the Spanish presidency and the EU Commission for organizing this – by far most important e-invoicing conference this year. I am very pleased and proud to have the opportunity to present the results of the Expert Group on e-Invoicing. Two years of hard work – 24 meeting days, innumerable telephone conferences and documentation work resulted in a very unified view on how e-invoicing should become the key to higher productivity and a new milestone in the progress towards a Single Market. This conference represents two important milestones – the end of the beginning with the Final report of the Expert Group – and I am sure we will all agree when we conclude tomorrow the beginning of the end-game – full migration to electronic invoicing and the multitude of rational administrative practises that enables.
  • 65 percent of business turnover – baking the cake for any welfare state – is coming from SMEs – and the potential for improved productivity in this sector is immense – focus on business instead of complicated and stressful administration
  • Bo harald. expert group of e invoicing

    1. 1. Results of the EC Expert Group on e-Invoicing Bo Harald Chair EC Expert Group on e-Invoicing
    2. 2. Expert Group on e-Invoicing - Mission <ul><li>Defined in Commission Decision of 31 October 2007: </li></ul><ul><ul><li>Identify shortcomings in current regulatory framework </li></ul></ul><ul><ul><li>Define e-Invoicing business requirements </li></ul></ul><ul><ul><li>Address relevant e-invoicing data elements (and linkages) </li></ul></ul><ul><ul><li>Propose responsibilities for standardisation bodies and time schedule </li></ul></ul><ul><ul><li>Propose a European e-Invoicing Framework - a common conceptual structure </li></ul></ul>
    3. 3. Results <ul><ul><li>Awareness of fundamental </li></ul></ul><ul><ul><li>importance of e-invoicing for: </li></ul></ul><ul><ul><li>Competitiveness of EU enterprises </li></ul></ul><ul><ul><li>Cost savings in public sectors </li></ul></ul><ul><ul><li>Service innovations </li></ul></ul><ul><ul><li>Learning </li></ul></ul><ul><ul><li>2. Recommendations </li></ul></ul><ul><ul><li>3. Next layer visibility </li></ul></ul><ul><ul><li>e-Invoicing is not dematerialization </li></ul></ul><ul><ul><li>only – but an enabling platform for </li></ul></ul><ul><ul><li>automating administrative processes at </li></ul></ul><ul><ul><li>large – a new paradigm </li></ul></ul>
    4. 4. <ul><ul><li>Value of information in structured form apparent </li></ul></ul><ul><ul><li>Productivity improvement potential – 250bn > business case for service providers and customers (Deutsche Bank Research report – 54bn€ pa in Germany alone) </li></ul></ul><ul><ul><li>Demographic challenges – liberating for more productive work much needed </li></ul></ul>Reasons for fast adoption
    5. 5. Dilemma nbr 1: EU workforce nose-diving Digitalization key to automation. Productivity improvement potential 250bn with e-invoicing Automation liberates much needed resources for productive work Automation leads to real time completion of processes 2020 35 million smaller 25 m larger
    6. 6. <ul><ul><li>4. SME-opportunities </li></ul></ul><ul><ul><li>(i)“eliminating” half of administrative cost – less economy of scale disadvantages of being small </li></ul></ul><ul><ul><li>(ii) becoming integrated e-parts of value chains </li></ul></ul><ul><ul><li>(iii) improved cash flow, cheaper financing and real time visibility </li></ul></ul><ul><ul><li>5. Very large savings and service improvement potential in public sector </li></ul></ul>Reasons for fast adoption
    7. 7. 2. Key Recommendations <ul><li>1: Meet the needs of SMEs as a priority focus. </li></ul><ul><li>2: Harmonise and clarify the legal and VAT framework based on equal treatment of paper and electronic. </li></ul><ul><li>3: Maximise interoperability and reach. </li></ul><ul><li>4: All actors to adopt a common invoice standard and data model- the UN/CEFACT CII v.2. </li></ul><ul><li>5: Establish an organisational process for implementation </li></ul><ul><li>of the EEIF. </li></ul><ul><li>6: Widely promote and communicate the benefits. </li></ul>Prog ress made Banking sector could do more VAT-directive for equal treatment Much work needed Great progress in ISO EC to establish PAN-EU Multi stakeholder Forum and recommend member states to do same Much work needed in SME and public sector
    8. 8. Time for EU to address the needs of SMEs <ul><li>Small enterprises cannot afford to invest in advanced ERP systems </li></ul><ul><li>Small enterprises cannot afford to communicate in x number of standards to their counterparts </li></ul><ul><li>Small enterprises cannot afford to support connectivity to x number of counterparties </li></ul><ul><li>Service providers should take all this in account – provide the simplest interfaces </li></ul>
    9. 10. Equens, IBM, Frauenhofer report
    10. 11. More than dematerialization – cutting administrative costs in all dimensions <ul><li>Very important to demonstrate full potential for SMEs: </li></ul><ul><li>Automated accounting </li></ul><ul><li>Automated and real time cash flow estimates </li></ul><ul><li>Automated and real time VAT </li></ul><ul><li>Automated invoice financing </li></ul><ul><li>Automated and unified reporting to public sector </li></ul><ul><li>All achieved by moving to e-invoicing. </li></ul>
    11. 12. Target: Cut enterprise administrative cost in half <ul><li>Build on DG Enterprise 25% target by 2012. 50% suitable next target for EC, Member state and MSH Forum. How soon? 2014? </li></ul><ul><li>This would speed up migration to e-invoicing and make it voluntary (deadlines for unstructured invoicing and transparent pricing still needed) </li></ul><ul><li>Corresponding cost saving and fraud elimination targets could also be set for report handling and supervision in public sector </li></ul>
    12. 13. Summary <ul><li>E-invoicing is just one step – but the foundation for wide scale automation of administrative processes </li></ul><ul><li>SMEs should be given more time for business – less for administration </li></ul><ul><li>Cutting administrative costs in half is possible </li></ul><ul><li>If we start now we may be ready by the time work force shortage sets in in earnest </li></ul><ul><li>The questions to ask: </li></ul><ul><li>Are we helping enterprises – aggressively enough? </li></ul><ul><li>Is the public sector acting in a model role </li></ul><ul><li>Should this not be the next milestone for the Single Market? </li></ul>
    13. 14. Page 14 2006-03-23 3 approaches: “ Any hype will do” Early start: “Explorer” Late (re)start: “Panicky follower” “ Ice Age” “ Huge Ice Age”
    14. 15. The future is not planned nor prognosed Thank you, http://boharald. blog It is created !