Facturae growth up 31% in 2016

Facturae

More than two years have passed since the rollout of compulsory Facturae for the public sector and its suppliers, a technological leap that has gradually become consolidated. In 2016, around 7,882,585 e-invoices were submitted to the different public administrations through the FACe entry point. The figure represents 31% growth compared to 2015, when throughout the year 6,011,813 bills were issued in this format.

These data are taken from the report published periodically by the Ministry of Finance and State Administration on the status of Facturae. Last December, the study announced that since coming into force in January 2015, FACe has processed 13,894,398 e-invoices, to the tune of €70 billion. Without this technology, these files would have meant millions of documents on paper, which would have had to be managed and stored traditionally with the economic costs entailed, both for businesses and the public sector.

Local Administration, the biggest invoice recipient

Although progress in the number of bills can be observed between the FACe report for 2015 and the 2016 version, there are other data which remain almost unchanged. Both studies confirm that the majority of Facturae are addressed to local administrations, closely followed by the regional authorities. In fact, in 2016 47.01% of electronic invoices went to city councils and 40.58% to regional bodies. In the two segments, the Community of City Council Madrid are the front runners, followed by the Government of Andalusia and Seville City Council.

In terms of monthly evolution in 2016, we saw a slight increase in the number of e-invoices sustained throughout the year. The figures only went down in August and September, two months affected by the vacation period. In contrast, December was the month in which most e-invoices were submitted via FACe, to a total of 802,343.

What will happen to Facturae in 2017?

For now, the Ministry of Finance and State Administration has already issued the FACe report for January 2017. According to the study, in the first month of the year 606,624 e-invoices were tendered, a figure well over that of 2016, when the number was 507,366.

We still have to wait to find out the details of the trend for the year. However, forecasts point to ongoing growth for e-invoicing in Spain. Although it is a mandatory technology for public sector suppliers, in some cases the exclusion of invoices worth less than €5000 is allowed. In other words, paper invoices are still being sent to the administrations, which have the potential to become digital.

Nevertheless, one of the main reasons leading us to expect a resurgence for Facturae in 2017 is rollout of the Immediate Information Sharing (SII) system. This new model requires more than 62,000 Spanish businesses to adapt to electronic VAT management by next July. With SII, submitting returns to the Tax Agency can be fully automated in the case of electronic invoices, but paper documents will mean a heavier workload. So, we expect an increase in use of e-invoicing, both in the B2G and B2B scope.

Number of e-invoices issued to the Spanish Administration grew 35% last quarter

“The ongoing increase in the number of e-invoices issued confirms that this technology is now fully ensconced in Spain’s business fabric. This is positive news, considering the working benefits and economic cost savings for both companies and administrations when implementing new ICTs such as e-invoicing”, explains Miguel Soler, expert from the Permanent e-Invoicing Observatory.

This EDICOM department studies the rollout and development of e-billing systems in countries worldwide, with special emphasis on Europe and Latin America, as regions leading the digital transformation with fiscal and taxation initiatives.

 

Read the full news at www.facturae.com

Spanish Public Administration receives almost 5 million e-invoices

From January to October, 4,630,681 e-invoices were submitted via FACe, the general point of entry to the Administration. These data from the Ministry of Finance and Public Administration (MINHAP) evidence gradual consolidation of this technology in Spanish companies.

The figures are corroborated by those released by the EDICOM Permanent e-Invoicing Observatory. According to this analysis, the platform run by EDICOM, one of the main e-billing service providers in Europe, handled 2287463 e-invoices issued to the different Spanish administrations. The figure includes bills submitted via the FACe entry point (general point of entry for e-invoicing managed by the General State Administration), as well as those received through entry points created ad-hoc by some administrations.

“Spanish legislation allows public administrations to manage their bills through FACe or create their own points of entry. Both options are possible and, in many cases, complementary,” explains Miguel Soler, EDICOM Facturae platform Product Manager. In fact, of all the e-invoices that have been issued through EDICOM’s Facturae platform, 45% were forwarded to own points. The rest account for 30% of all documents registered by FACe in this period.

After the General State Administration, the entry point that receives most e-invoices is that of the Catalan autonomous community, representing 10.6% of all documents issued by the EDICOM Public Administration HUB. The entry point of the Andalusian Regional Government (9.1%) takes second place, followed by those of the Xunta de Galicia (8.8%) and the Basque Country Health Service, Osakidetza (7.6%).

 

Ongoing development

Remember that as of last January 15, Public Sector suppliers and service providers are required to use this mandatory technology in their business relations with the Administration. In this sense, the reports from the EDICOM Permanent e-Invoicing Observatory and MINHAP both point to progressive growth in the first months of the year. “The EDICOM platform data show that the number of invoices more than tripled between February and October, an ongoing uptrend that was also observed by the FACe”, adds Miguel Soler.

 

Operational advantages

The introduction of e-invoicing in the Spanish public sector responds to a global trend towards digital management. “Many countries around the world are rolling out this technology due not only to the reduction of economic costs, but also its working benefits”, says Miguel Soler from EDICOM.

The government estimates that businesses are saving 0,70 euros on each invoice since they began using electronic channels. Moreover, the General State Administration is expected to benefit annually by more than 50 million euros. But beyond economic aspects, e-invoicing makes complying with tax obligations simpler, with shorter turnaround times and other added benefits, such as the possibility of checking the status of your invoices at any time.

 

Further information on Facturae and its implementation at www.facturae.com


The EDICOM Permanent e-Invoicing Observatory analyses the rollout and development of e-invoicing in more than 60 countries worldwide.

EDICOM is a Spanish multinational specializing in e-invoicing and electronic data interchange (EDI) with offices in 8 countries around the world. Founded in 1995, today it is a major technology benchmark and leader in data integration solutions, providing services to over 15,000 customers worldwide.

Amendments to law on e-invoicing

Since the rollout of e-invoicing in Spain last January, different difficulties have emerged that prevent optimum use of this system. Administrations and suppliers alike have failed to comply with the rights and obligations demanded by this type of billing. To this end, in an attempt to improve the situation, on March 24 the Official State Gazette published an Amendment to Law 25/2013.

The amendment includes changes to five articles of the regulation. The majority are related with regulation of general entry points for e-invoicing in the different agencies. The amendment also addresses other issues related with accounting records for invoices. The aim is to encourage more rigorous control of documents and expedite payment deadlines.

 

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