Govein initiative calls for third e-Invoicing project in the health sector

govein

The e-Invoicing project, led by EDICOM and financed by the CEF Telecom e-Invoicing programme, has begun its third phase. Two approved projects started up in 2016 and the first one is already in its final phase. For the public bodies taking part, the implementations are practically ready to go live in October.

Now, a third initiative to implement e-Invoicing in public health sector agencies in Europe is being launched. The call for participation in this project is already open. The deadline for European public health sector companies to apply to join the project ends on November 30, 2017.

The aim of the project is to implement an e-Invoicing solution, or adapt the existing one to the European specifications in health sector companies forming part of the consortium.

Health trusts and agencies, suppliers of products and services or laboratories can join the project to start using e-Invoicing, ahead of the requirements set out in Directive 2014/55/EU, which comes into force in November 2018 in Europe for public bodies of all kinds.

Get ahead of the mandatory e-Invoicing initiative in the EU. Find out more in our free Webinars, sign up here:

  • September 21, 2017 | 11:00 to 11:30 (GTM+1) –> REGISTER
  • September 28, 2017 | 11:00 to 11:30 (GTM+1) –> REGISTER

 What is Govein?

Govein is an R+D+i initiative designed to encourage development of e-Invoicing in the European Public Sector, and particularly in the healthcare scope. We must remember that next year Directive 2014/55/EU comes into force for all member states. This regulation requires the use of e-invoicing in public procurement through a common European standard ensuring interoperability.

EDICOM, as Certification Authority and qualified trust service provider, is responsible for managing and leading the project, with the support of European Management Consulting EMC. To this end, they have developed a multi-standard solution, which integrates with corporate ERPs and follows the specifications of the new European regulation and the PEPPOL standard for exchanging messages with public administrations.

Through the Govein initiative, healthcare industry companies taking part in the consortium can implement this platform at minimal economic cost. The European commission subsidizes up to 75% of expenses in order to further the spread of cross-border e-Invoicing.

Health sector leading the way in e-Invoicing

Govein is not the only initiative to encourage e-billing in the health sector. The British Department of Health (DoH) is currently immersed in full digital transformation due to rollout of the NHS e-Procurement Strategy, which sets up a paperless system for business relations between healthcare trusts and their suppliers. In fact, two NHS trusts have joined Govein to facilitate the implementation of this technology. They are the Derby Teaching Hospitals NHS Foundation Trust and the London North West Healthcare NHS Trust.

In addition to the United Kingdom, Italy is also making progress in health sector digitization. Hot on the heels of the obligation to issue e-Invoicing in the Public Sector, the region of Emilia-Romagna has now set up a dematerialization flow for orders and despatch advices exchange between healthcare agencies and their suppliers, following the PEPPOL specifications. A sector in full transformation, in which technology can bring great benefits: from economic savings to minimizing errors.

Key dates for adaptation to NHS e-Procurement Strategy

NHS

The e-Procurement Strategy initiative Initiative rolled out by the UK’s National Health Service (NHS) is fully up and running. The Department of Health (DoH) decided to create a progressive adoption timeline, to facilitate the way into digitization, both in the different health trusts and organizations and their supplier companies.

Medical device companies are the earliest adopters of the new electronic system. For them, the British authorities have set out a total of 20 actions to be carried out between March 2016 and September 2020. All those involved in this initial e-Procurement Strategy phase must comply with the deadlines set for each of these tasks, and the next one is due to end in just two months.

Next NHS e-Procurement Strategy deadline: September 30

By September 30, medical devices suppliers must comply with 5 phases of the e-Procurement Strategy:

  • In the corporate scope, suppliers must update the Global Location Numbers (GLN) in the GLN registry.
  • They also need to synchronize their product data through the GDSN, using an e-catalogue such as EDICOMData.
  • In addition, the deadline for class IIb and IIa medical devices to be assigned their Global Trade Item Number (GTIN) for all packaging levels is approaching. Bear in mind that this action was already compulsory for class III devices as of last year.
  • As for labelling, these class III devices will now have to include GTIN labels in the barcodes of their products.
  • Finally, by September 30, all suppliers without exception must be able to submit electronic invoices to the NHS Access Points. This will be one of the most notable breakthroughs in rollout of the e-Procurement Strategy. Since last March, these companies have been able to receive electronic purchase orders, and before long all their business processes will become digital and automatic.

The next steps

Once the deadline of September 30 has passed, the next key date on the calendar will be March 31, 2018. By then, all companies will be ready to adopt e-procurement at corporate level. However, some technological changes in the systems will still be pending in order to adapt to the PEPPOL and GS1 standards set forth in the regulation.

This is one of the most ambitious public e-procurement initiatives in Europe. Once its implementation is completed in 2020, the DoH expects to achieve economic savings ranging from 5000 to 8000 pounds per bed. In addition, patient safety will be improved and product waste will be reduced by 10%, thanks to more precise management.

For supplier companies, the technological leap will also bring cost savings, an increase in productivity and automation of many of their business processes, among other benefits.

–> Download the White Paper on NHS e-Procurement Strategy to find out how this project affects you, how you can adapt to it and how it all works.

Why FinTech companies should join forces with EDI

EDI fintech

FinTech companies are expanding in Brazil. A report by Goldman Sachs says that more than 200 financial technology companies located in the country could generate $24 billion in revenue over the next decade. The growth potential of this sector, which is dedicated to the development of innovative financial services, is widespread throughout the world but its incidence is even greater in Brazil due to the high concentration of banking institutions.

In a crisis scenario like the one that the Latin American country is currently experiencing, innovation seems to have become a door for getting ahead. It is estimated that Brazilian banks and FinTech companies have invested $1 trillion in disruptive initiatives to improve the ecosystem of the sector. However, much still needs to be done in order to optimize the flow of communications in banking.

Compared to other regions such as the United States or Europe where financial EDI practically does not exist, Brazil stands out worldwide in the adoption of EDI in this sector. Moreover, FinTech companies are helping to increase the development of business management in this area.

The automation of communication with banks, through EDI, is a key solution to fight the main problems that affect the techno-financial sector which include:

  • Lack of security. The use of communication tools such as e-mail does not guarantee the confidentiality and integrity of data. But beyond that, the big drawback is that all accounts payable and receivable operations are handled by people, so the risk of fraud is high.
  • Difficulties in growth. FinTech companies are in full expansion. The number of customers grows fast and companies must be prepared to respond to high demand and sustainable growth. EDI with banks and automation allows such scalability without the need to constantly increase human and physical resources.
  • High lead time for processing transactions. In a world marked by immediacy, no business can afford to waste time on operations. Faster processing makes businesses more competitive.
  • Inadequate use of resources. FinTech companies and financial institutions that do not yet use EDI need to have a human team dedicated to carrying out the transactions related to accounts payable and receivable, a task that takes time, is expensive and does not add value to the company. With the automation of EDI, these people could dedicate themselves to more productive and beneficial tasks for the company.
  • Human errors. When transaction processing is done manually, it is common for errors to occur. Their detection and subsequent correction increases management time, which is something that does not happen with financial EDI since the process is automatic and error-free.

How to implement financial EDI

Given the advantages of electronic data interchange and its ability to solve these major problems affecting FinTech companies and banks, the financial sector is taking the lead in the implementation of this technology in Brazil.

To encourage its use and facilitate implementation, EDICOM has specifically developed a financial EDI platform, aimed at FinTech companies, banks, suppliers and all partners in the sector. It’s a comprehensive multi-standard, scalable, global solution. In addition, it has different internationally recognized certifications that guarantee safety such as the ISO 27001, the ISO 20000 and the ISAE 3402.

“We invite companies to start e-Invoicing soon”

factura electrónica colombia

The drive towards massive widespread use of e-Invoicing in Colombia continues to make headway. The National Tax and Customs Office (DIAN) expects uptake of this technology among the country’s taxpayers to be completed in 2019. Today, we interview Cristian Uribe, Andean region Country Manager from EDICOM, who describes the current state of the initiative and what the new features will be.

DIAN has been working on this massive e-Invoicing project since 2015. What will be the next step in rollout of the system?

Recently, the DIAN issued the list of authorized e-Invoicing service providers, with EDICOM amongst them. This certification from the tax agency gives a new impetus to massification, which is expected in 2019. After successfully completing the pilot trials during 2016, companies now have the option of voluntarily implementing this new electronic billing model. Soon, we shall see how e-Invoicing in Colombia is gradually spreading, in line with the economic and technological level of the country’s businesses.

As you explained, EDICOM is now a Technology Service Provider (PST). What process did it have to go through to achieve this authorization?

The main requirement for achieving this accreditation was being an e-Invoicing issuer and EDICOM was already doing so as of January 2017. Moreover, we have taken part in the e-invoicing pilot project in Colombia from the outset. In order to become an e-invoicing provider we have passed all the technological and functional tests set by the DIAN, following criteria such as having the current Single Tax Registry (RUC) in force, being responsible for income tax, belonging to the common regime and holding ISO 27001 accreditation on information security management systems. EDICOM’s international presence also provides us with knowledge and extensive experience to be able to approach e-Invoicing projects in any country, as we already do in Mexico, Brazil, Chile, Peru, Ecuador, Argentina, Uruguay and others.

What are the features of the new e-invoicing model?

The characteristics of the Colombian model are similar to those of Mexico, Chile or Peru. First, they require a consecutive numbering system authorized by the DIAN to guarantee the uniqueness of the invoice. Second, they must include the Single Electronic Invoicing Code or CUFE and use the standard XML generation electronic format stipulated by the regulations. And finally, each invoice must be electronically signed to ensure document integrity and authenticity. 

In addition to invoices, this massification process also includes other electronic documents …

Indeed. Decree 2242 of 2015 regulates the following documents: invoices, credit notes, debit notes and receipt acknowledgments. In the future, further documents such as referral guides or certificates of withholding will be added.

The aim is to encourage practices that allow automation of the exchange of business documents between companies, as in other countries with more advanced e-Invoicing systems.

Once the DIAN publishes the list of the first taxpayers required to issue e-Invoicing, what process should these companies carry out?

The first thing is to set deadlines for the rollout process. In accordance with the provisions of article 10 of Decree 2242 of 2015, the DIAN resolutions for taxpayers required to bill electronically shall come into force within a period of no more than three months after publication in the Official Gazette.

These companies must register with the DIAN and request the trial numeration and technical key. Then, they will have to adapt their internal processes to the electronic system and run tests between their ERP and the supplier. Finally, they must apply for their production and contingency numbers. 

If companies decide to sign up for e-Invoicing voluntarily, what is the process to follow?

In these cases, they need to apply to the DIAN, which then issues a resolution authorizing the company to bill electronically. From the start of the process, the period to perform the necessary trials for qualification in the service provided by the DIAN is three months. Once these trials are completed, users must begin billing electronically within the next three months. 

What benefits will massive widespread use of e-invoicing bring for Colombia?

As occurred in other Latin American countries that are more advanced in the use of e-invoicing, this system entails several benefits, generally related with enhanced fiscal control and greater optimization of information management for businesses. To be a little more specific, we could cite the following advantages: reduced time in document processing, removing the need for paper and being environmentally friendly, no more risk of losing physical documents, greater efficiency in administrative processes (now integrated with the ERP), traceability and security in transactions, shorter collection times, saving space and time in document storage, the possibility of consulting documents exchanged online… In short, companies will see simplification of their tax returns and an optimization of their efforts that will involve economic cost savings. 

What else would you say to taxpayers interested in rolling out e-Invoicing?

We encourage them to start e-Invoicing as soon as possible, rather than waiting until it becomes mandatory. If they implement e-invoicing voluntarily as early adopters, they will have time to review the impact of the new system on their internal processes. In this way, they will be able to avoid and resolve any problems that might arise in their workflows. In addition, on our side, EDICOM will accompany you throughout the entire process to ensure that we always comply with the requirements and obligations of the electronic process. The e-Invoicing model is well advanced in several countries, especially in Latin America, and with it many companies have been also able to centralize the issuance of e-Invoicing to any other country in the world.

EDICOMSii solution successfully launches SII project

SII AEAT

One week after entry into force of the SII project, which involves the declaration of VAT returns to the AEAT, the EDICOMSii has successfully managed the transmission and forwarding of these e-documents to the Tax Agency’s electronic office for all our clients without incident.

In the first two weeks, more than five millions entries have been forwarded to the AEAT electronic office. This means the transmission of more than 41.000 VAT ledgers.

Why choose the EDICOMSii solution?

EDICOM provides an agile and immediate start-up solution to link up with the AEAT. In addition, it facilitates 100% transparent integration with the main ERPs on the market.

Contact us and find out how to complete your solution by incorporating our certified communications and storage services.

Download our White Paper on e-VAT bookkeeping through the SII and join our SII group on LinkedIn, where we share all the new features and clear up your doubts and queries.