Four Advantages of Having a Global e-Invoice Provider

Glboal e-Invoicing

The electronic invoice is being used more and more throughout the world. In some cases, companies have made the decision to use e-invoices in order to eliminate paper and increase efficiency. However, in most cases it is a requirement for tax compliance. This is already the case in most countries in Latin America and Europe. Other regions such as Asia and North America are also beginning to take steps to encourage the use of this technology.

The problem is that in a globalized world, where companies often operate in different markets, electronic invoicing does not follow the same pattern. Each country has implemented a different model, which requires the use of certain technical requirements. Therefore multinational companies are faced with the challenge of adapting to the requirements of each country.

Check out the main advantages of centralizing management in globaleinvoicing.com.

GDSN: How does data synchronization affect the final consumer?

GDSN

Today, one of the main objectives of logistics and trade is immediacy. The sooner the demand is met the more competitive the company will be. For this reason, suppliers, manufacturers and distributors are abandoning the use of traditional catalogs in favor of product data synchronization through the GDSN network. What is the difference? While the catalog needs to be updated constantly to modify article information or to add new references, electronic synchronization makes the process automatic and more importantly, immediate.

For participants involved in the supply chain, the benefit is direct. The flow of communication is optimized, information is always up to date and orders are made and delivered more easily. But what advantages does product data synchronization have for the final consumer?

The benefits of product data synchronization for the final consumer

The buyer is the last link in the business chain. Everything that happens before reaching it will determine the success or failure of the sale. This means that if suppliers and distributors optimize their procedures with data synchronization through the GDSN network, they will also see an improvement in the final consumer’s reaction.

The four major benefits for buyers when applying this technology are:

  • Increased product availability. With synchronization, the supply chain shares information in real time and streamlines logistics. In this way, stock is controlled better and so is the product’s availability in the store. This advantage is essential for the company because if consumers don’t find their brand during their weekly visit to the store, they will choose another product and sales will decrease.
  • Decreased delays. Automation reduces errors and product returns. In traditional catalogs, outdated information leads to misunderstandings that can be very costly for the company. Also, correcting errors takes time. Product data synchronization avoids such problems and decreases delays, which is something fundamental in some sectors such as health in which patients cannot wait.
  • More reliable product information. In the nutritional field, outdated product information can have serious consequences, such as allergies or intolerances. This way synchronization gives the consumer more accurate information, even when buying from a distance or online. In fact, measures have already been taken in the European Union to allow e-commerce to share data on foodstuffs with consumers and thus increase nutritional security.
  • Better promotions. Increased productivity, agility during the process and increased sales thanks to a better response in terms of demand means a reduction in costs and an increase in revenue for companies. As a result, companies have more leeway to make promotions for consumers who can benefit from lower prices on certain occasions.

These four benefits translate into greater satisfaction for the final consumer and therefore an increase in sales, the main objective for any company.

EDICOMData, the most complete electronic catalog

The electronic catalog EDICOMData is certified to operate in the GDSN network (of the B2B sector) and in the GS1 Source (directed to the final consumer). This makes it the most complete solution for users who can either synchronize their product data with other partners or give the final consumer access to the information in a structured way through portals or web pages.

–> Click here to find out more information about EDICOMData.

How does SII compare to other VAT reporting models in Europe?

SII

More than 62,000 Spanish companies are required to join the new Immediate Information Sharing system, known as SII, by 1st of July. This e-VAT declaration model is an innovation in the country. However, other regions in Europe have already opted for similar initiatives.

The latest White Paper published by EDICOM on e-VAT compliance worldwide shows the different submission systems rolled out in each country. Some of the most advanced are Portugal, Luxembourg and the Czech Republic, which opted for this method some years ago. Nevertheless, the majority of states are currently immersed in the rollout process, as occurs in Spain, Italy or Hungary.

The fact is that development of these models has followed similar steps to those of e-invoicing; the standards and demands of companies vary in the different markets. But even so, all the electronic VAT return models in Europe are similar in certain aspects:

  • Member States are committed to electronic enforcement of this tax in order to simplify the process, combat fraud and reduce the return times for businesses, which until now were rather long in most countries.
  • Spread of digitization. Electronic VAT return projects such as SII are designed to be yet another step on the road to paperless working taken by the different governments. Before rolling out the system, almost all of them have expanded e-invoicing between the public sector and its suppliers.
  • Businesses using SII will be required to submit their VAT-related information in an XML format. In this case, the AEAT has designed a specific schema, but many other European countries use the XML SAF-T standard developed by the OECD.
  • Typically, as with the SII, companies that submit their VAT returns electronically have two connection options: manually transmitting the files through the platform (for users with a low volume of files) or automation via web service, which integrates the ERP with the tax agency’s platform.
  • Validations. Another common feature between SII and the systems in other European countries is the data validations. Once the tax authority, the AEAT in Spain, receives the VAT information, it validates it and sends the company back a response in which it confirms or rejects the data.

Does your ERP issue SII system-compliant VAT books? If so, you’re just one step away from compliance with the AEAT requirements.

EDICOM provides an agile and immediate start-up solution for connection with the AEAT. If your business has the capacity to issue VAT books in accordance with the SII specifications, EDICOM can manage the automatic forwarding of this information to the Tax Agency safely and transparently. This way, you can complete your SII solution quickly and in compliance with all the requirements.

The EDICOM platform has tried and tested operational developments that ensure smoothly flowing and secure communication with the Tax Agency. Through the communications platform, users automate forwarding of their VAT books and can also store them along with the response notifications from the AEAT. The service, designated EDICOMLta (EDICOM Long Term Archiving) is a long-term safekeeping facility that guarantees the integrity and authenticity of VAT ledgers submitted over time, raising them to the rank of evidence through “Trusted Third Party EDICOM”.

–> Download the White Paper on the SII to find out how this new e-VAT model affect your business.

–> Download free White Paper on EDICOMLta long-term electronic storage.

What is the digital IQ of companies?

Digitization

Fifty-two percent of executives believe that the degree of digitalization of their companies is high or very high. This is one of the conclusions derived from the 2017 Global Digital IQ® Survey: 10th anniversary edition recently published by the consulting firm PwC. Although this figure may seem high, the truth is that it has dropped 15 points since the last report, which contained data from 2015.

Have companies taken a step backwards in digital transformation?

The decrease in the perception that the CEOs have about the digitalization of their companies does not correspond to less technology implementation in businesses. According to PwC, this decrease is due to three factors:

  • The first is that companies have increased their technological knowledge and are more aware of the road ahead.
  • Secondly, managers now understand that digital transformation is not just an IT issue, but should involve all departments of the company.
  • And finally, digital evolution is fast and there is a growing number of new technologies such as artificial intelligence that companies don’t feel prepared to deal with.

This scenario has caused confidence in companies’ technological capabilities to be minimal. Even so, there is an improvement in the effort dedicated to digital transformation. In fact, 66% say that they have a digitalization strategy that includes business and IT processes, compared to 54% in 2015.

Furthermore, 80% believe that identifying digitalization opportunities is a critical part of business innovation. However, only 43% have a team dedicated to digital transformation. This data demonstrates that companies are advancing, but not fast enough to adapt to the most recent technologies that are emerging.

What do companies pursue with digital transformation?

In the survey, the majority of managers confirmed that increased revenue was the main value they expected to get from their technology investment. In total, the percentage reached 57% compared to 45% in 2015. The increase in profits (12%) and cost savings (7%) were other reasons.

It’s astonishing that the improvement of customer experience and product innovation are last at 10% and 2% respectively. Both have dropped compared to 2015 when they were a target for 25% and 5% of respondents.

 Consolidate before innovating

In the last 10 years, the percentage invested by companies in emerging technologies has remained almost the same. In 2007, it was 16.8% of the total IT budget. Now it is 17.9%. The majority of this percentage is dedicated to the Internet of Things (73%), artificial intelligence (54%), and robotics (15%).

However, right now companies have another digital priority. Their main objective is to consolidate or implement technologies aimed at automating work processes and optimizing operations, which are two goals for those who use relevant solutions like cloud computing, electronic storage, or EDI.

White Paper on Global VAT Compliance: how to do your e-VAT return

White Paper Global VAT Compliance

Tax agencies around the world are moving towards electronic tax compliance. However, in a global market like today’s, each country continues to issue its own standards. This hinders the adaptation of companies that find technology both a challenge and an opportunity in equal measures. This is why EDICOM has published a free white paper explaining how to submit an electronic VAT return in each world region.

What is included in the Global VAT Compliance White Paper?

The Global VAT Compliance Expert Analysis (available in English and Spanish) is a resource designed for companies operating in several countries, or planning to do so. Through it, you can find out how the indirect tax VAT works, how it is regulated and what its implications are both for companies and tax authorities.

The Global VAT Compliance guide also includes the e-VAT return process in Latin America. In this part of the world, the authorities have opted for a different model from the European and e-reporting is linked with e-invoicing, which is mandatory for the vast majority of businesses.

–> Download our free White Paper on Global VAT Compliance

How to submit an e-VAT return?

The big challenge for global companies is dealing with local tax compliance. When it is necessary to have several technology solutions, one for each country, the effort is doubled and management becomes inefficient. This prevents businesses taking advantage of the potential of automation.

To overcome this hurdle, we have created the EDICOM Platform, a global solution for B2B2G e-communications. Through the platform, companies can engage in EDI, e-invoicing and electronic VAT returns in any region worldwide. This way, it is possible to centralize all transactions in a single platform, streamlining tasks and cutting economic costs.

You can find out more about the solution in our White Paper on Global VAT Compliance.

Other resources

If you would like further information about electronic tax compliance around the world, we also recommend these other readings: