1st CEN e-Invoice Gateway CIM Conference

Past, present and future of CEN WS e-Invoicing Anders Grangard, co-chair

21st June 2011, Zagreb

Doing the Maths

28 Billion invoices / Year in Europe (2006) Savings with eInvoicing 5.5 8.5 / Invoice Average 10% are eInvoices Saving potential: 139 214 Billion / Year Not saving <587 Million / Day

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Why not saving 587 M/Day?

Historically (pre EU Directive 2001/115/CE) Legislation created for paper invoices Fear of fraud
VAT fraud estimated at up to 10% of net VAT receipts Legislative Business practices ICT maturity The Internet not secure by design Maturity of content standards

Different interpretations in different countries

New technology barriers

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Why not saving 587 M/Day?

Currently (post EU Directive 2001/115/CE*) The Directive provided fundamental change

Electronic invoices must be accepted, if sent as:
EDI Electronic Signature Other (mutually defined)

No prior acceptance required

Great impact on national level Cross border remains difficult

The Directive implemented differently in all national laws

SME penetration remains low Lack of service provider interoperability

2005 CEN 2006/112/CE * Later included in the VAT Directiveall rights reserved 4

CEN eInvoicing Workshop

PHASE 0: 5/10 participants

Report on Main Issues of Directive 2001/115 24 October 2002 30 June 2003 Address main issues of focus group report 24 April 2004 11 April 2006 9 Workshop Agreements (CWA) Support Compliance, raise awareness 26 October 2007 18 June 2009 5 CWAs Integration of Results 2010 2012 Compliance Guideline SME enablement Network interoperability Dissemination
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PHASE 1: 20/50 participants

PHASE 2: 50/70 participants

PHASE 3:

1. 2. 3. 4.

The Past

Phase 1 CEN Workshop Agreements, CWA

CWA 15574

Subject Commission Recommendation 1994/820/EC October 1994, proposed revision with the requirements of Directive 2001/115/EC Directive invoice content details as UN/CEFACT Core Components Recommendation to allow coded identifiers as an alternative to the current unstructured clear text identifications Standardized set of codes in eInvoice messages for VAT exemptions Survey of VAT Data Element usage in the Member States and the use of codes for VAT Exemptions

15575 15576

15577 15578

15579 15580 15581 15582

E-invoices and digital signatures Storage of Electronic Invoices Guidelines for eInvoicing Service Providers eInvoice Reference Model for EU VAT purposes specification

2005 CEN all rights reserved 2008 CEN all rights reserved 10/01/2010

CEN/ISSS Workshop on Electronic Invoices II

Adoption programme for increased electronic invoicing in European business processes CWA 16046 Compliance of electronic invoice implementations to Council Directive 2001/115/EC and the national legislation as regards electronic invoices CWA 16047

Cost-effective authenticity and integrity of electronic invoices regardless of formats and technologies CWA 16048 Implementation of compliant electronic invoice systems in using emerging technologies and business processes CWA 16049 Framework for emerging network infrastructure of invoice operators throughout Europe CWA 16050 CEN eInvoices III Berlin 15/16 December 2010
2005 CEN all rights reserved 2008 CEN all rights reserved 10/01/2010

The Present

ELECTRONIC INVOICE PROCESS

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eInvoicing Compliance Guidelines

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Simplified Compliance Guidelines

Methodology
Link FAQs with the compliance matrix (Excel) Export to relational model
Build interactive user interface on top Generate CWA type document from it

2005 CEN all rights reserved

Service Provider Interoperability

Develop a model for a European Interoperability Agreement based on International/European standards 4 Corner Model Addressing and Routing issues PEPPOL liaison
PEPPOL The four-corner-model

2005 CEN all rights reserved

SME Enablement

Problems and obstacles that hinder the use of eInvoicing by SMEs What are the categories of SMEs (being prepared for eInvoicing, IT environment, etc.) What are the possible scenarios to enter eInvoicing and migrate to better integration in their business processes Functional requirements for eInvoicing solutions

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The Future

Approach
What challenges will we face towards 2020? What challenges will we face in 2020?

Key priorities to promote e-invoicing within the EU (EC - 712/2010) Ensure a consistent legal environment for e-invoicing Achieve mass market adoption by reaching Small and Medium-sized Enterprises Stimulate an environment that creates maximum reach Promote an e-invoice standard data model

Stakeholder Interface - Multi Stakeholder Forum, National Fora, CEN, Fiscalis, Service Provider Organisation(s), European Commission
CEN eInvoices III Berlin 15/16 December 2010
2005 CEN all rights reserved

30 06 2011

Main development areas

1. Compliance 2. Functional Support 3. Awareness 4. Standards

CEN eInvoices III Berlin 15/16 December 2010

2005 CEN all rights reserved

30 06 2011

Some initial thoughts (1/3)

Compliance Area Increase participation from external auditors, e.g. KPMG, Deloitte International Audit Guidelines Translations

Functional Support Area Interop agreement who will maintain (service provider association, EC, UN/CEFACT,...) Revised EDI agreement (94/820/EC)
To include XML, cloud computing, etc

Archiving, Data Transport & Storage Capacity

CEN eInvoices III Berlin 15/16 December 2010

2005 CEN all rights reserved

30 06 2011

Some initial thoughts (2/3)

Awareness Area eInv one-stop-shop (including eInv for dummies) Global content (not just EU) Connectivity across national fora Website for multi stake holder fora (national & EU) Additional functions/services

Standards Area: Invoice content

MUG1, MUG2 Non-EU requirements, e.g. sales tax

API technical specification - by whom CEN eInvoices III Berlin 15/16 December 2010
2005 CEN all rights reserved

30 06 2011

Next Steps

Questionnaire Dialogue with Multi Stakeholder Forum Form a task group if required Continue some work, e.g. The gateway Exchange ideas of future work Open to any volunteers Coordinators: Stefan & Anders Outreach to strategic alliances
UN/CEFACT Audit organisations

CEN eInvoices III Berlin 15/16 December 2010

2005 CEN all rights reserved

30 06 2011

Contacts

Anders Grangrd Co-Chairman of CEN/ISSS Workshop on Electronic Invoices in Europe anders.grangard@gs1.org