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.

One step closer to e-invoicing in Costa Rica

One step closer to e-invoicing in Costa Rica

On February 14, Costa Rica is starting up its e-invoicing pilot project, which will include six large taxpayers and plans to spread this system throughout the country. The announcement of the breakthrough comes after the issuing on 7 October of Resolution DGT-R-48 on Authorization for use of e-invoicing and associated electronic documents. In addition, on November 3 the selection criteria for taxpayers required to issue e-invoicing once the pilot plan starts up were also published in the official state gazette.

The Directorate General of Taxation (DGT) has now defined the mandatory features for e-documents. The formats and technical specifications are detailed in the annexes and XML structures listed in the DGT web portal. In addition, the method for delivery, validation and preservation of electronic receipts is also stipulated (mandatory for a 4-year period).

Who will be required to issue e-invoicing in Costa Rica?

For the moment, the DGP has not revealed how migration to e-invoicing will take place, although it is foreseeable that it will be done gradually, in stages, as occurred in practically all the Latin American countries where e-invoicing use is now compulsory. Nevertheless, there is still no definite timeframe. What will be announced on December 15 will be the list of taxpayers required to start issuing e-invoicing from the start of the pilot scheme in February 2017.

In this regard, the DGT selection process will take into account the criteria published in the Gazette on November 3. Among them, the income level and activity sector of the taxpayers. These taxpayers will receive notification by email in the case of large companies, or through the Gazette for smaller taxpayers.

However, taxpayers who are prepared to face this technological leap can apply to join the pilot scheme voluntarily. To do so, they must send an e-mail to fe@hacienda.go.cr.

A system with great benefits

The spread of e-invoicing in Costa Rica will bring benefits, both for the public sector and private companies. With this technology, the DGT will be able to improve control and reduce tax evasion, as all the business transactions will be declared in real time. In addition, taxpayers will simplify tax compliance and automate part of their administrative procedures, which will increase productivity and cut economic costs. In fact, the savings from e-invoicing may reach 90% compared to the traditional process on paper.

Use of the electronic invoice becomes more widespread in Colombia

Use of the electronic invoice becomes more widespread in Colombia

After six months, Colombia’s tax and customs administration completed its pilot project for electronic invoicing. The country is entering the next stage in the process, which is to make the use of e-invoicing more widespread. Colombia’s tax administration expects that a significant number of taxpayers will be using the e-invoice by 2017.

During the testing phase, which began this past April, 59 businesses from different sectors participated. The objective was to identify improvements that could be made to the billing model proposed by the tax and customs administration before more taxpayers begin using the e-invoice technology.

According to the data provided by the tax and customs administration, 70,000 invoices were issued during the pilot program, which lasted for six months. In general, the tax and customs administration affirms that 84% of the project was carried out successfully. However, Colombia has many challenges to face before expanding the use of the e-invoice.

 

What are the next steps?

For the moment, the tax and customs administration is expected to certify providers authorized to offer e-invoicing services. These providers have passed all of the system tests and comply with the regulations of Decree 2242. EDICOM is involved in this project and participated in the pilot project as well. EDICOM has successfully passed each of the required tests within the tax administration’s time period. Furthermore, EDICOM is a leader in e-invoicing compliance solutions in other countries such as Mexico.

In regards to mandatory e-invoicing, the tax and customs administration published a list of companies which must begin using the e-invoice during the first phase of the process. Like other Latin American regions, Colombia set a schedule of progressive adaptation while taking the technological and economic development of companies into account.

 

Why is the use of the e-invoice becoming more widespread?

Today, Colombia doesn’t use the e-invoice as much as other countries. Although the e-invoice has been available since 1995, it is estimated that only 2% of companies in the country utilize it due to the difficulties posed by the current model. The e-invoice expansion project will address this problem by using a more operational billing schema.

This paperless system has already taken place in other countries such as Mexico, Brazil and Chile. With this expansion, the tax and customs administration expects to obtain the same results as the aforementioned countries. The e-invoice will help combat high rates of tax evasion, promote finance mechanisms such as factoring, simplify tax compliance and reduce economic costs.

More Than 11,000 Companies Must Adapt to the Electronic Invoice in Peru

More Than 11,000 Companies Must Adapt to the Electronic Invoice in Peru

December 1st marks a new deadline for businesses in Peru to adjust to the schema of the electronic invoice. Resolution 203-2015 established that on this date more than 11,000 businesses will be part of this transition. The tax administration has listed them on its website. The taxpayers who are obligated to incorporate this system of electronic emissions are those who have met one of two requirements since July 31, 2015. They are as follows:

 

  • They were major taxpayers in Lima’s central government.
  • They were major taxpayers in regional government offices or area offices.

Those businesses affected by the regulation must issue electronic invoices only. They must also issue ballots of sale as well as credit and debit notes in accordance with the system of electronic emissions.

This will be the second group of taxpayers to join the system of electronic emissions in 2016. Since this past July, those businesses that were major taxpayers in 2015 have already completed the transition to e-invoicing.

Peru’s tax administration aims to expand the system of electronic emissions in a progressive way and facilitate migration to the new schema until it reaches the mandatory number of businesses that need to transition to e-invoicing by 2017. It’s a strategy that follows the model of many other Latin American companies such as Argentina and Chile. With the mass use of this technology, the tax administration plans to reduce costs for taxpayers, simplify tax compliance and improve control of tax evasion.

 

Preparing to Issue Electronic Invoices in Peru?

In addition to those businesses required to transition to e-invoicing by the regulation, other companies who wish to issue electronic payment invoices from 2010 onward can do so. To adapt to this technology and take advantage of the benefits it guarantees, EDICOM has designed a solution that automates processes and is adapted to the requirements established by SUNAT, Peru’s tax administration.

Whether the software is used online or integrated into a business’ management system, it transforms the data to the required XML schema, guaranteeing the integrity of the documents by electronic signatures and declares documents to SUNAT online. Furthermore, the global e-invoicing system is ready to issue electronic invoices that not only conform to the requirements of Peru but to more than 60 other countries in the world. It’s a complete and scalable solution for any multinational company.

Use of the e-Invoice in Latin America poses a double challenge for multinational companies

einvoicing_latam

By the end of 2016, approximately 30 billion electronic invoices will have been exchanged around the world. Billentis reports that this is a 10% to 20% increase from last year. Nevertheless, every region does not use the electronic invoice with the same frequency. Eleven billion of these invoices are processed in Latin America alone where tax authorities require mandatory e-invoicing as a method to reduce tax evasion. For this reason, e-invoicing has become one of the most relevant issues at the CIAT Technology Meeting held from October 10th through 12th in Miami.

 

A Unique Model

Multinational companies that want to do business in Latin America must install the proper technology to utilize the mandatory e-invoice. Mexico and Brazil lead the mandatory e-invoice initiative because practically 100% of taxpayers use it. This technology is also well established in Chile, Ecuador, Argentina, Peru and Nicaragua. In other countries like Colombia, Uruguay and Guatemala, the use of the e-invoice is growing little by little. Meanwhile, other countries like Costa Rica, El Salvador and Panama are still in the investigative stage.

Companies that sell services or products in the Latin American market must face a double challenge when dealing with the electronic invoice. One challenge is that in this region, technology is a system of fiscal control. This means that trade relations involve not only the seller and the buyer but the tax administration as well. Invoices are declared in real time, so it’s necessary to ensure connectivity with the systems of these public entities.

On the other hand, multinational companies also face the challenge of adapting to the different technical and legal requirements of each country.  This can reduce efficiency in many countries because it forces companies to use different technical solutions in every market and decentralizes administrative management consuming more resources as a result.

 

A Global Solution

That’s why EDICOM, which has been a global leader in electronic invoicing for more than two decades, has designed a solution to address these challenges. This solution is the Global E-Invoicing Platform that allows e-invoices to be issued in accordance with the regulations of more than 60 countries around the world while guaranteeing connectivity with their tax authorities. It is a comprehensive software designed to  adapt to other regions so multinational companies can centralize fiscal compliance activities in and beyond Latin America.

The way the Global E-Invoicing Platform functions is simple. It integrates with a business’ management system with the goal of automating the issuance, declaration, storage and receipt of invoices. It also provides an opportunity for companies to increase productivity, enhances safety and reduces costs. When compared to traditional e-invoice management, it has been estimated that this solution can increase a company’s savings by 90%.

 

If you want to know more about this solution, please contact EDICOM to request a live demonstration. Also, we recommend that you download our white paper titled, “EDICOM’s Expert Analysis: The Electronic Invoice in Latin America” to learn more about where the e-invoice is mandatory in Latin America as well as details about the Global E-Invoicing Platform and how it can affect your business.