Governments around world are seeking to save time and money by requiring electronic invoicing (eInvoicing) for all business-to-government (B2G) billing. These B2G eInvoicing mandates require that businesses providing goods and services to any government entity – educational, medical, transportation, local and federal offices – must eInvoice.
B2G eInvoicing Mandates in the European Union
The European Parliament created Directive 2014/55/ EU of the European Parliament and of the Council. This directive requires that EU countries define rules for electronic invoices in public procurement processes by Nov. 27, 2018. This means governments must have a defined plan for public institutions to accept electronic invoices as a method of billing.
In the meantime, the directive mandates the creation of a standard for the semantic data model of the core elements of an electronic invoice. (The ‘European standard on electronic invoicing’). This work is now taking place. When the standard has been published, reviewed and finalized, member countries have 18 months to receive electronic invoices in the standard format.
Legislation in France
Not all countries are waiting for the standard to be published. In France Order No. 2014-697 makes it mandatory for businesses to issue invoices to public entities in electronic format. In addition, this order makes it mandatory for all State*, local authorities, and public institutions to accept eInvoices. The rollout of mandated B2G einvoicing in France commences in January 2017 and will be enforced in stages, starting with large businesses.
However, eInvoicing isn’t just about complying with B2G or tax authority mandates. It is about transaction communication and enabling automated processing of digital documents. Billentis estimates that eInvoicing saves money in five categories of processing costs – capture, quality assurance, routing and circulation, reporting and filing and payment for an overall potential saving of 60%.
If you need to reduce invoicing costs and comply with regulatory mandates, OpenText can help. OpenText is the global leader in B2B integration solutions, with the largest B2B network processing 18B transactions per year. We help organizations digitally connect for commerce. Our eInvoicing compliance solution provides tax compliance for eInvoicing in more than 40 countries. It also connects you to several European governments who have mandated eInvoicing, including France and Italy.
Learn more about eInvoicing.
* Except in the case of defense or national security.