Italian fashion industry joins EDI

L’EDI entra nel settore della moda italiano

The fashion industry is a key factor for the Italian economy, both for its level of turnover and the exports produced, mainly to the United States and Europe. In 2014, export sales generated 398,000 million euros, a record at the time. In addition, the figure forecast for 2016 is likely to reach 450,000 million euros. This internationalization is one of the sector’s principal defining features and has encouraged the spread of electronic document interchange (EDI) among fashion firms.

However, it is not the only one. In this area, beyond the challenge of communication across borders, companies handle a wide range of products. Everything ranging from sports clothing to footwear, through accessories, kids’ clothing and infant wear, to the high-end luxury brands. In this sense, EDI technology has also become an ally against the lack of uniformity in the sector.

How does EDI work?

With electronic data interchange, communications between different IT systems are standardized. This means that transaction and information sending take place in real time, automatically and safely, regardless of the features of the partners involved in the business or logistic relations.

In Italy, the spread of EDI throughout the fashion industry has mainly been driven by the big stores, such as Saks, Neiman Marcus, Harrods, La Rinascente, Printemps, El Corte Inglés, etc. These international brands usually act as a hub and require their suppliers to use this technology for the exchange of business documents like orders, shipping notes or invoices, as well as others of a logistic nature, such as product catalogues.

This is why so many Italian businesses of all shapes and sizes have signed up to EDI, a virtually indispensable requirement when exporting. But beyond the requirement, adopting EDI technology in B2B companies is now a key factor in optimizing logistics processes, boosting productivity, reducing the number of errors and, finally, maximizing efficiency through task automation.

A global solution

Some of the big brands already rely on EDICOM to implement their EDI solutions. To name but a few, Harrods, Cortefiel, Printemps or El Corte Inglés, four of the main fashion market hubs. This experience has enabled the EDICOM team to develop a Global EDI solution, which addresses the two needs of businesses in the sector: internationalization and product heterogeneity.

The EDI solution is integrated with the companies’ internal management or ERP systems. This way, the entire administration and logistic process is handled from a platform already known to the team, so there is no need to modify in-house working procedures. For example, when an invoice is generated, the EDI solution processes it automatically, translates it into the standardized language required by the partner and forwards it. This happens the same way with any other business, logistical and administrative transactions. Both in sending and receipt, all the processes are automatic, thus boosting efficiency and cutting economic costs.

France gears up for switch to e-invoicing

La France se prépare pour le passage à la facture électronique

As of January 1st, the country’s public agencies and corporations are required to use this system in the frame of their business relations. The spread of this technology will then continue until the incorporation of micro-businesses in 2020. To this end, last November the French government issued Decree n° 2016-1478, a text setting out the implementation modalities for e-invoicing in the public procurement framework. On December 9, 2016, the government further announced a Ministerial Order to complete the Decree, detailing the procedure for sending and receiving e-invoicing, as well as ways of processing these bills.

From this decree, which came into force on 1 January, we can highlight the following information:

  • Firstly, the text stipulates the information an e-invoice must contain to be considered valid. Among others, we note the presence of a date of issue, the identity of the sender and recipient, the unique invoice number and amounts, etc. In total, Article 1 of the Decree lists 11 mandatory requirements.
  • In second place, the Decree states that electronic invoices must be sent to public bodies through Chorus Pro, the portal developed by AIFE (Agence pour l’Informatique Financière de l’Etat), which guarantees the reliability, security, privacy and traceability of the data. However, the text also provides that in the event of non-compliance with this obligation, the relevant public entity must inform the sender of the mistake and invite them to use the portal.
  • Finally, the Decree states that the payment period cited in each invoice shall commence as of the time of receipt of the acknowledgement confirming receipt of the e-invoice by the recipient.

Are you ready for e-invoicing?

As of January 1, public administrations and large companies with over 5,000 employees must only use electronic invoicing, in accordance with Ordinance Nº 2014-697. A year later, on 1 January 2018, it will be the turn of midsize companies (250 to 5,000 employees). In 2019, SMEs (10 to 250 employees) are due to join the system, finally followed by micro-businesses (fewer than 10 employees) from January 1, 2020.

This is a technology project of vast scope. For this reason, EDICOM is working in collaboration with AIFE alongside other public agencies, carrying out pilot trial runs to get everything ready by the scheduled dates. EDICOM is already in the transition to production phase with the State and those businesses involved in the project voluntarily. If everything goes according to plan, France foresees annual savings of €710 million euros, of which 335 could involve the private sector.

Beyond reducing costs, the aim of this project also concerns the improvement of efficiency and simplifying tax collection. To achieve these objectives, EDICOM has developed a complete e-invoicing solution that automates the entire procedure for creating, sending, receiving and reporting of electronic invoices.

The EDICOM e-invoicing platform integrates with the ERP/internal management systems of businesses or public agencies and meets the requirements of the French legislation. Moreover, it ensures connectivity with Chorus Pro and any other national or supranational body, through a Public Administration communications HUB.

Download the white paper on e-invoicing

If you would like to know more about this technology project and how it works, you can download this free guide to e-invoicing with the Public Administration in France (available in French and English). In it, our team of experts presents an in-depth analysis of e-invoicing system features in France and Europe. In addition, the guide provides information on the adaptation tasks to be undertaken by companies and the options available for the switch to electronic invoicing.

SII – Immediate Information Sharing system to be mandatory in Spain in July 2017

El sistema de Suministro inmediato de la Información SII será obligatorio en julio de 2017

More than 62,000 Spanish businesses will be required to adapt to the new mandatory Immediate Information Sharing system (SII) as of July 2017. Rollout of this model, which proposes electronic bookkeeping of Value Added Tax (VAT) ledgers, was initially scheduled for next January. However, the absence of Government delayed implementation for another year.

The main new feature of electronic VAT bookkeeping is that the tax will now be declared to the Tax Agency (AEAT) in almost real-time. In fact, the legislation requires companies to present and declare the details of their invoices issued and received within a period which should not exceed 4 calendar days. This period will only be extended when the invoices have been issued by the recipient or by an accredited third-party, such as EDICOM. In these cases, the deadline will be 8 calendar days.

Another of the big changes due to come with SII will be the simplification of tax compliance, as already occurred with e-invoicing. With this system, companies are limited to filing tax self-assessments. And models 347, 340 and 390, previously used to declare information, will no longer be necessary.

As a new feature, during the first six months of SII operation, taxpayers will have an extraordinary term for submitting their information, which will be eight days. When this period expires, the deadline for submitting the information to the AEAT will be 4 days. Read our SII Decalogue with all the details of this system.

Businesses with turnover of over 6,010,121.04 euros classified as Large Companies, those listed in the monthly return regime (REDEME) and those belonging to VAT groups, will have just over 6 months to adjust to this new model, which poses a challenge in the technological adaptation of their internal management systems and connectivity with the AEAT electronic office. In this sense, it is important to start the migration process as soon as possible, as failure to comply with the obligation by the deadline set may incur penalties.

Download our White Paper

To find out all the details of this system, download our White Paper on electronic VAT bookkeeping through the SII, which has detailed explanations of how VAT electronic bookkeeping works and the changes it entails for businesses.

EDICOM leading SII pilot project

In 2017, the AEAT will resume trials of the SII pilot project, with EDICOM playing a proactive role as international expert in developing data integration and e-invoicing systems. So much so, that we have already been working to adapt our solutions to the new requirements affecting electronic VAT management, to ensure secure connectivity with the AEAT electronic office.

The EDICOM SII Solution is integrated with the company ERP or internal management system to automate sending of data to the Tax Agency. This information is forwarded in the set XML format to the SII via web services through the EDICOM Public Administrations HUB. When the AEAT Agency receives data, it validates and returns one of these states: full acceptance, partial acceptance or total rejection. These responses, which may also be integrated in the ERP, are stored along with the original books sent to the AEAT in the EDICOMLta long-term safekeeping service, which is designed to provide responses to the particular features of IIS, with a personalized viewer that lets you retrieve a replica of the VAT books kept in the la AEAT electronic office.