tieto inga major_ecr_presentation english
TRANSCRIPT
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E- invoicing – practice of usage in EuropeECR Forum, June 2010Inga Major
© 2010 Tieto Corporation2 ECR Forum
Table of contents• Tieto• What is E-invoicing• Different data formats ; tax&legal requirements• Walki Case – demonstration of workflow with e-signature• Current EU VAT directive. New VAT directive• While label (own – brand) e-invoicing platform for banks• Future in Russia?
2010-06-03
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9 T
ieto
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Tieto today
• 16 000 IT professionals in close to 30 countries
• Customers on all continents
• One of the leading IT service companies in Northern Europe and global leader in selected segments
• Net sales approximately EUR 1.8 billion
• Listed in NASDAQ OMX Helsinki and Stockholm
• Founded in 1968
• Represented in EU expert commission on e-invoicing
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E-invoicing – the whole process from creation to receiving of electronic invoice+ storage
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© 2010 Tieto Corporation5 ECR Forum
Definitions (Wikipedia)E-invoice• An e-invoice is an electronic transaction document that contains billing information in an
electronic format. • An e-invoice may be
• processed within an electronic invoice presentment and payment (EIPP) (B2B) or EBPP (B2C) workflow system or may be
• uploaded directly into a user’s ERP or accounting system. • Standard types of workflow performed on an e-invoice include verification, coding, routing
and approval. • By using e-invoices companies eliminate manual data entry, facilitate faster payments to
their vendors and track invoices more easily
• EIPP – normally it includes e-invoice exchange, portal and ERP integration
2010-06-03
© 2010 Tieto Corporation6 ECR Forum
Definitions (Wikipedia)The process• E-invoicing provides seller’s with a method to submit invoices electronically to their
customers. • The most effective e-invoice programs connect the seller’s accounts receivable
operations with their customer’s accounts payable operations.• The seller submits an e-invoice to the buyer's EIPP system. The buyer, then, examines
and verifies the accuracy of the invoice, codes and routes it for payment approval.
E- invoice types • EDI – Also known as Electronic Data Interchange, is an electronic transfer of data from
computer to computer using an agreed structured format that can be generated and read by a computer and processed automatically.
• XML - Also known as extensible mark-up language, XML is a widely accepted way of sharing information over the Internet in a way that computers can use, regardless of their operating system.
• Webforms - Allow users to enter data that is typically sent to a web server for processing.
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© 2010 Tieto Corporation7 ECR Forum
Corporate interface challenge:no single data formats
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VDA/Odette (automotive)
UN/Edifact
ANSI X.12
EANCOM
Rosettanet (Electronics)
chemXML (Chemical)papiNet (paper and pulp)
ETC.
Advantage:• Flexibility for different businesses & freedom to use any formats
• No over-regulation
Tieto hasany-to-any
conversion serviceNo need to wait
for standards(ISO 20022)!
© 2010 Tieto Corporation8 ECR Forum
E-invoice Tax & Legal Compliance in a Roaming Connection
Digital DocumentArchiving Service
Invoice
Receiver
Invoice
Issuer
Signing and Validation Service
SupplierServices
BuyerServices
AuditServices
IssuerCountry’s
CertificationAuthority
e-Invoice platform
ValidationConversion tointermediate
format
PDFRendering
Conversionto roaming
partnerformat
ReceiverCountry’s
CertificationAuthority
In co-operation with
Attachmentpackaging
Inter-mediateformat
eInvoice Hub Service
Compliance Map
Other Service Provider
Conversion toreceiverformat
PDF SigningVerification
Attachmentseparation
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© 2010 Tieto Corporation9
Tax & Legal Support in E-invoicing
2010-06-03ECR Forum
Nbr Nbr1 Australia 21 Latvia
2 Austria 22 Lithuania
3 Belgium 23 Luxembourg
4 Bulgaria 24 Morocco
5 Canada 25 Netherlands
6 Croatia 26 New Zealand
7 Cyprus 27 Norway
8 Czech Republic 28 Poland
9 Denmark 29 Portugal
10 Estonia 30 Romania
11 Finland 31 Singapore
12 France 32 Slovakia
13 Germany 33 Slovenia
14 Greece 34 South Africa
15 Hong Kong 35 Spain
16 Hungary 36 Sweden
17 Iceland 37 Switzerland
18 Ireland 38 United Arab Emirates
19 Israel 39 United Kingdom
20 Italy 40 United States
Country Country
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Walki case
© 2010 Tieto Corporation11 ECR Forum
An Actual Case from Paper and PulpCustomer locations
Production and sales locations
Customer requires all e-invoices to Germany, France and Austria to be signed
Tieto service signs e-invoices with issuing country and receiving country certificates
More countries expected to be added
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© 2010 Tieto Corporation12 ECR Forum
The Process for Walki
Invoice
Receiver
Signing PDF file
With
Digital Signature
IssuerCountry’s
CertificationAuthority
GERMANY
eInvoice Hub Service
ValidationConversion Tieto XML
format
PDFRendering
ReceiverCountry’s
CertificationAuthorityFRANCEAUSTRIA
In co-operation with
Attachmentpackaging
TietoXML
eInvoice Hub Service
Other Service Provider
Conversion From Tieto XML
to receiverformat
PDF SigningVerification
Attachmentseparation
Invoice inpapiNetformat
Signed pdfFor archiving
Archive
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© 2010 Tieto Corporation13 ECR Forum
Data flow with Digital Signature• Invoice sender (supplier) sends data to Tieto in own format• Validation, conversion to Tieto format• Tieto produces original document – pdf file• Original document is signed with digital signature• No data files are signed! (if data would be signed –it would
be a problem with auditors and tax authorities : they treat data as original and have no resources to convert data to visualised format; for e-invoice provider signed data sets limitation for conversion services, ie presentment etc)
• Power of attorney is used to sign by the name of supplier• Data files are sent to roaming partner or to e-inv receiver• Signature verification is done by one of them• Original documents (signed pdfs) are sent back to
supplier, saved in electronic archive2010-06-03
© 2010 Tieto Corporation14 ECR Forum
Contractual relationships
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1.Service agreement(allows to create ORIGINAL from data)
Interchangeagreement
Business contract for support inmeeting tax& legal requirements
Agreements with several CA’sin different countries
2. Power of attorney to sign ORIGINAL documents
OtherServiceProvider
© 2010 Tieto Corporation15 ECR Forum
Practical situations for Digital Signature• Large Corporates operate and have subsidiaries in several
countries and shall obey different local laws and authority instructions
• Harmonized business processes are often executed from centralized shared service centers that serve all countries and units
• Seller shall often align itself into buyer requirements• Some Corporates require all purchase e-invoices to be
digitally signed for such legal units operating in countries where digital signing is applied
• Problems raising due to the fact that CA’s are not connected with each other
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© 2010 Tieto Corporation16 ECR Forum
Current EU VAT directiveThe Directive on VAT invoicing establishes• a list of ten mandatory general items of information that must be included on every invoice,
plus four additional items that may be required in specific circumstances, • simplified arrangements for small companies and small-value invoices, • the requirement for Member States' tax authorities to recognize the validity of electronic
invoices without any notification or authorization system, on condition that the authenticity of origin and integrity of data are guaranteed through the use of electronic signatures or Electronic Data Interchange (EDI).
Electronic signatures allow someone receiving data over electronic networks to determine the origin of the data and to check that it has not been altered.
EDI is a system of secure electronic information transmission used by businesses,
• the possibility in certain circumstances of outsourcing invoicing operations to a third party or to the customer (i.e. self-billing),
• free choice of the place and method of storage of invoices and the acceptance of electronic storage, including on-line storage in a Member State other than the Member State in which the firm in question is located
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© 2010 Tieto Corporation17 ECR Forum
The New EU Directive Proposal• How will this proposal make electronic invoicing easier?
- Equal treatment between paper and e-invoices by removing specific VAT conditions for e-invoicing
By creating equal treatment between paper and electronic invoices the Commission believes the VAT obstacles that hamper the use of electronic invoicing will be removed –
The current rules for e-invoicing requiring either use of an advanced electronic signature or EDI, along with the various options and interpretations afforded to Member States, makes electronic invoicing difficult to implement, especially cross border.
These conditions will be removed.
Authenticity requirements can be achieved by • business controls that provide audit trail between supply and invoice (in same way as
businesses do for paper invoices) • EDI or advanced e-signatures based on qualified certificate -only examples – not
mandatory- Technology neutral approach - Member States can not prescribe the use of any particular
technology - This approach has support of Expert Group on e-Invoicing
http://ec.europa.eu/taxation_customs/resources/documents/common/whats_new/memo_e-invoicing_en.pdf
http://www.trustweaver.com/press/ECOFIN_16032010_analysis.pdf
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e-invoicing platform – ”white-label”-own brandfor banks
© 2010 Tieto Corporation19 ECR Forum
E-invoicing platform: bank provides e-invoicing services to clients
E-invoicePortal
File integrationERP StandardVirtual printers
File integration
ERP Individual
Paper to e-InvoiceScanningprovider
File integrationERP Standard
File integrationERP Individual
e-Invoice to PaperPrintshops
INVOICE SENDERS INVOICE RECIEVERS
Internet bankSingle Sign On
E-invoicePortal
Internet bankSingle Sign On
Bank White labelede-Invoice service
BankFactoring
Bookkeeping Supply Finance
Billing &Statistics
Supplier Financing
FactoringCash flow planning
(file integrations)
Customer AdministrationVia Swedbanks ordinary systems
Support & MaintenanceVia secure webinterface
Bank provides value added services
Payments
Payment initiation
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© 2010 Tieto Corporation20 ECR Forum
Why it is beneficial for a bank to become a e-invoicing service provider?
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•Benefits for banks’ clients• Invoices are integrated with payments• No need to have additional e-invoice provider• Simple interface, no need to invest in complex system for SMEs• Integration with ERP for big customers• Possibility to buy additional services like cash flow forecast• Access to cheaper finance
• Ready customer base• Additional income from existing customers :
• Add income e-invoice transactions• Opportunity to use business information to create new value added services
• Cash flow forecasting• Factoring• Supplier financing• Billing and statistics
• Customers require this service from banks • Customers want to have value added services (as bank service surveys show)
© 2010 Tieto Corporation21 ECR Forum
Future in Russia?
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•Coming changes in legislation will allow to use electronic VAT invoicesQuestions:• Mandatory data format?
– e-invoices not only required to tax authorities but most of all it is in the interest of business. Mandatory data format may not support / take into account the interests of businesses
•Technology neutral approach?
•Sinature of data files – data files are treated as originals? -in Europe is is not common as it causes problems:1) with auditors and tax authorities - they have no resources to
work with data files incl producing hunman readable format etc.2) it sets limitations for e-invoice operator in data processing
=>To transfer data electronically, but to use electronic signature for human readable files, not for data!
© 2010 Tieto Corporation22 ECR Forum
Future in Russia?
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• We believe that everybody needs the new legislation wich will allow to deal with electronic VAT invoices
• We believe that such changes in legislation will create a value added for many businesses – corporates big and small, banks, providers
•Electronic communications, B2B and B2C have big future in Russia
• Banks will have a special role in e-invoicing - such as it is typical in Europe
• This is new business segment in Russia• Large business opportunities for banks
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Financial Value Chain Services DirectorTieto, [email protected]