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Moscow 3.6.2010


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Moscow 3.6.2010

  1. 1. Results of the Expert Group on e-Invoicing<br />Bo Harald<br />ChairEC Expert Group on e-Invoicing<br />
  2. 2. Expert Group on e-Invoicing - Mission<br />Defined in Commission Decision of 31 October 2007:<br />Identify shortcomings in current regulatory framework<br />Define e-Invoicing business requirements<br />Address relevant e-invoicing data elements (and linkages)<br />Propose responsibilities for standardisation bodies and time schedule<br />Propose a European e-Invoicing Framework - a common conceptual structure<br />
  3. 3. Results<br />Awareness of fundamental<br />importance of e-invoicing for:<br /><ul><li>Competitiveness of EU enterprises
  4. 4. Cost savings in public sectors
  5. 5. Service innovations
  6. 6. Learning </li></ul>2. Recommendations<br />3. Next layer visibility <br /><ul><li>e-Invoicing is not dematerialization</li></ul> only – but an enabling platform for <br />automating administrative processes at<br />large – a new paradigm<br />
  7. 7. Reasons for fast adoption<br />Value of information in structured form apparent<br />Productivity improvement potential – 250bn > business case for service providers and customers (Deutsche Bank Research report – 54bn€ pa in Germany alone)<br />Demographic challenges – liberating for more productive work much needed<br />
  8. 8. Dilemma nbr 1: EU workforce nose-diving<br />2020<br /> 35<br />million<br />smaller<br />25 m larger<br />Digitalization key to automation. Productivity <br />improvement potential 250bn with e-invoicing<br />Automation liberates much needed resources for productive work<br />Automation leads to real time completion of processes<br />5<br />
  9. 9. Reasons for fast adoption<br />4. SME-opportunities <br /><ul><li>“eliminating” half of administrative cost – less economy of scale disadvantages of being small
  10. 10. becoming integrated e-parts of value chains
  11. 11. improved cash flow, cheaper financing and real time visibility</li></ul>5. Very large savings and service improvement potential in public sector<br />
  12. 12. 2. Key Recommendations <br />Progress made<br />Banking sector could do more<br />1: Meet the needs of SMEs as a priority focus.<br /> 2: Harmonise and clarify the legal and VAT framework based on equal treatment of paper and electronic.<br />3: Maximise interoperability and reach. <br />4: All actors to adopt a common invoice standard and data model- the UN/CEFACT CII v.2. <br />5: Establish an organisational process for implementation <br />of the EEIF. <br /> 6: Widely promote and communicate the benefits.<br />VAT-directive for equal treatment<br />Much work needed<br />Great progress in ISO<br />EC to establish PAN-EU Multi stakeholder Forum and <br />recommend member states to do same<br />Much work needed in<br />SME and public sector<br />
  13. 13. Time for EU to address the needs of SMEs <br />Small enterprises cannot afford to invest in advanced ERP systems<br />Small enterprises cannot afford to communicate in x number of standards to their counterparts<br />Small enterprises cannot afford to support connectivity to x number of counterparties<br />Service providers should take all this in account – provide the simplest interfaces<br />
  14. 14. More than dematerialization – cutting administrative costs in all dimensions<br />Very important to demonstrate full potential for SMEs:<br />Automated accounting<br />Automated and real time cash flow estimates <br />Automated and real time VAT<br />Automated invoice financing<br />Automated and unified reporting to public sector<br />All achieved by moving to e-invoicing.<br />
  15. 15. Target: Cut enterprise administrative cost in half <br /><ul><li>Build on DG Enterprise 25% target by 2012. 50% suitable next target for EC, Member state and MSH Forum. How soon? 2014?
  16. 16. This would speed up migration to e-invoicing and make it voluntary (deadlines for unstructured invoicing and transparent pricing still needed)
  17. 17. Corresponding cost saving and fraud elimination targets could also be set for report handling and supervision in public sector </li></li></ul><li>Summary<br />E-invoicing is just one step – but the foundation for wide scale automation of administrative processes<br />SMEs should be given more time for business – less for administration<br />Cutting administrative costs in half is possible<br />If we start now we may be ready by the time work force shortage sets in in earnest<br />The questions to ask: <br />Are we helping enterprises – aggressively enough?<br />Is the public sector acting in a model role <br />Should this not be the next milestone for the Single Market?<br />
  18. 18. “Ice Age”<br />“Huge Ice Age”<br />3 approaches:<br />“Any hype will do”<br />Early start: “Explorer”<br />Late (re)start: “Panicky follower”<br />12<br />2010-03-07<br />Page 12<br />2006-03-23<br />
  19. 19. It is created !<br />The future is not planned<br />nor prognosed<br />Thank you<br />,<br />2010-03-07<br />13<br />