EMCS system to be mandatory for internal movements of tobacco, alcohol and hydrocarbons in Spain.

As of 1st July 2013, use of the EMCS system is to be extended to all shipments whose point of origin and destination fall within national territory in Spain. The system, designated INTERNAL EMCS, affects movements of all products subject to special taxation (alcohol, alcoholic beverages, tobacco and hydrocarbons), and replaces accompanying documents in paper format with electronic files that must be exchanged between the parties and declared to the pertinent Tax Authorities.

EMCS stands for Excise Movement Control System, created by the European Union to control movements of products subject to special duties (alcohol and alcoholic beverages, tobacco and hydrocarbons) between EU member States.

The system uses the technology associated with electronic data interchange, replacing the accompanying administrative documents in paper format by electronic messages which are exchanged between those involved in the movement of goods: Origin, destination, logistics and customs.

The use of this system, which is mandatory for intra-Community movements since 2011, will now be required for all movements subject to special taxation taking place within each country from July 1, 2013. The Spanish tax authority, on its www.emcs.es website, explicitly stipulates that “use of the EMCS system extends to shipments to and from locations in the internal Community territory, including from the point of importation […]”.

Since last February 12, the Spanish Tax Agency has had the test environment open for the draft presentation web service, so that it is now possible to start running preliminary tests.

Edicom, as a leading Electronic Data Interchange service provider, has solutions primed and ready to create the accompanying documents and process statements online to the Tax Authorities.

Our solutions automate the generation and sending of the different electronic files for integration with the in-house management systems of the various operators.

If you are sending or receiving products subject to excise duty, you will be affected by this system, even when the movements taking place do so exclusively within national territory.

Please contact us to prepare the launch of your Internal EMCS solution.

Further information available on our website: www.edicomgroup.com

 

EDICOM publishes analysis of electronic billing in Mexico and Brazil

At EDICOM USA, our expert e-invoicing systems analysts carried out two exhaustive studies on the mandatory electronic invoicing solutions currently operating in Mexico and Brazil.

The size of the American economy coupled with its free trade policies make frequent business relationships with its southern neighbors, so a detailed knowledge of the mandatory tax regulations and technical requirements with which all B2B business platforms must comply is a basic need for companies.

EDICOM undertook both studies in its role as an expert in developing International EDI and E-invoicing solutions, with a long track record in the South American continent and a leading position in Mexico, with offices also in Brazil and Argentina. This position makes us an authority on electronic billing solutions across the continent.

We invite you to read our analysis and contact our team of consultants to resolve any queries you might have.

Mexican e-Invoicing | CFDi

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DAVID FELIPE BORRERO

dborrero@edicomgroup.com

The CFDi (Comprobante Fiscal Digital por Internet) identify the electronic invoicing model in force in Mexico.

This billing system, mandatory for most of the country’s businesses, is now fully up and running, as shown in the data published by the SAT (Servicio de Administración Tributaria) each month.

Nota Fiscal Eletrônica | NF-e

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DANIEL LYNCH

dlynch@edicomgroup.com

Electronic invoicing in Brazil follows the format of the “Nota Fiscal Eletrônica” (NF-e), it is obligatory for nearly all enterprises in Brazil, and is managed by the Tax Authority (Fazenda) in collaboration with the relevant state level offices.

EDICOM Expert Analysis : Brazilian eInvoicing for US companies

Electronic invoicing in Brazil follows the format of the “Nota Fiscal Eletrônica” (NF-e), it is obligatory for nearly all enterprises in Brazil, and is managed by the Tax Authority (Fazenda) in collaboration with the relevant state level offices.

 “Nota Fiscal Eletronica” is a document that is sent and stored electronically with the purpose of documenting commercial transaction between buyers and sellers. It is both an obligation set by the government as well as an opportunity for businesses to reap the rewards of electronic invoicing such as quicker collection times and lower costs associated with document processing.

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Immobility in new electronic billing arrangements in Spain

 We analyse the new regulations on issuing electronic invoices and how they are transposed into Spanish law in Royal Decree 1619/2112 of 30 November. This decree explicitly allows the issuer of digital invoices freedom to choose the system employed to ensure integrity and authenticity of the documents issued best suited to their needs, proposing alternatives to electronic signature.

On 1 December 2012, the Official State Gazette, BOE, published Royal Decree 1619/2012 of 30 November, approving the regulation governing invoicing obligations.

There are few changes from the previous model, as it continues to consider the document that guarantees authentication of the data source and integrity as an electronic invoice, legitimising for the issuance and transfer of legal documents the same technologies already set forth in Royal Decree 1496/2003 (Advanced Electronic Signature, EDI System, Checking Systems, Reliable Audit Trails). However, this new transposition gives the issuer freedom to choose one system or another, implementing at all times a series of validation requirements set by the relevant authorities.

The regulation explicitly acknowledges electronic signature as a means to ensure authenticity of the source and integrity of the content.

Nevertheless, it allows invoice issuers freedom to choose alternative methods to the signature, such as the development of specific management and control models based on so-called “reliable audit trails”, which in any case would need to be analysed and validated by the State Tax Administration Agency.

To the difficulty and cost of developing individual models that must be audited and approved by the competent authorities must be added the possible implications for the relationships with individual invoice-receiving customers. These circumstances make advanced electronic signature the safest, fastest and most cost-effective method to implement “authentic” and “integral” invoice issuing.

Royal Decree 1619/2012: A look at the electronic model

Royal Decree 1619/2012 was drafted to harmonise the existing Directive 2010/45/EU dated 13 July 2010.

Here, we list the items of the ruling with direct impact on the electronic billing model in Spain.

ARTICLE 8: Means for issuing invoices

Invoices may be issued by any means, in paper or electronic format, which guarantees the person obliged to issue them the authenticity of their origin, integrity of content and legibility, as of date of issue and throughout their storage period.

Authenticity of the origin and integrity of the invoice contents, in paper or electronic format, may be guaranteed by any legally accepted means of proof.

Basically, it tells us that electronic invoices may be issued on condition that their authenticity and integrity are guaranteed at all times. And this is assured when using any legally authorised means (Advanced Electronic Signature, EDI System, Checking System, Reliable Audit Trails) stipulated in Article 10.

Article 9: Electronic invoice

Electronic invoice will be understood to mean those bills conforming to the provisions of this Regulation and issued and received in electronic format.

Issuance of the electronic invoice will be conditioned by prior consent from the recipient.

These premises do not change with respect to the previous legislation.

Article 10: Electronic invoice authenticity and integrity

Authenticity of the source and integrity of the electronic invoice content will be assured in one of the following ways:

a) By advanced electronic signature in accordance with that set forth in Article 2.2 of Directive 1999/93/EC of the European Parliament and Council of 13 December 1999, establishing a Community framework for electronic signature, whether based on a certificate acknowledged and created by means of safe signature creation device, in accordance with that set forth in sections 6 and 10 out of Article 2 of the cited Directive, or in a recognised certificate as set forth in section 10 of Article 2 of said Directive.

b) By electronic data interchange (EDI) as defined in Article 2 of Commission Recommendation 94/820/CE of 19 October 1994, on the legal aspects of electronic data interchange, when the agreement relative to this interchange anticipates the use of procedures that guarantee authenticity of the source and integrity of the data.

c) By other means that the interested parties must notify to the State Tax Administration Agency prior to their use for their pertinent validation by the same.

Article 10 of the regulation expressly acknowledges that electronic data interchange (EDI) and advanced electronic signature guarantee authenticity of origin and integrity of the content of electronic invoices and thus constitute a valid method. It also leaves the door open to using other means, after notification and authorisation for use by the State Tax Administration Agency.

Articles 19, 20 and 21 stipulate the mandatory storage conditions for electronic invoices, which are the same as those set forth in the previous model, establishing their electronic preservation in original format for a 5-year period, as well as the need to provide a system that enables selective searching, copying or downloading of the invoices in a readable format for access by the Administration.

The evident conclusion for businesses is that adopting an electronic invoicing solution based on an EDI system, besides being acknowledged and recommended by the authorities, is a cost-effective solution for administrative and fiscal company management that provides efficiency and significant cost savings compared to traditional paper-based billing formats.

Further information on our E-invoicing solutions