Liesbet Nevelsteen, Partner, Deloitte Global Tax Center EuropeJolien Lauwens, Manager Indirect Tax, Deloitte Belastingconsulenten

E-invoicingThe next step in the e-Transformation of VAT Compliance6 June 2019

Agenda

eInvoicing Directive: update and overview of the EU legislation on electronic invoicing and archiving in a B2B context

eProcurement Directive: get insights on what is eProcurement about, and what is the impact on market players in Europe

Impact of eInvoicing on taxpayers:─ VAT compliance─ Systems─ Processes

Q&A

Introduction to eInvoicing

eInvoicing

European outlook

E-invoicing is and has been a common B2B practice and has been around in businesses for many years.

Recent developments on e-invoicing are increasing the speed and complexity of the invoicing process on a global scale.

Traditionally, paper invoicing, is manually intensive and is prone to human error resulting in increased costs and processing lifecycles for companies.

Electronic invoicing (e-invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format.

Development in the European Union

eInvoicing

Source: Billentis Market Report 2017

Network

eInvoicing

Main market models

Supplier

Buyer

Buyer

Supplier Direct Model

Buyer Direct Model

Supplier

Supplier

Buyer

Network Model

Clearance Model

Supplier

Supplier

Network

Buyer

Buyer

Supplier

Supplier

Tax auth.

Buyer

Buyer

eInvoicingDirective 2010/45/EU

eInvoicing Directive 2010/45/EU

A short recap

Definition of e-invoice

invoice that contains required information, and which has been

issued and received in any

electronic format

The choice of format is

determined by the taxable persons.

Examples: invoices as structured

messages (XML), an e-mail with a PDF attachment

Basic conditions

1. Acceptance by the recipient

2. Authenticity of origin, the integrity of the content and the legibility of the invoice should be guaranteed

Objectives

1. Part of the Digital Agenda for Europe

2. Reducing costs on businesses,

thereby increasing the efficiency of EU companies

eInvoicing Directive 2010/45/EU

In practice

No sign-off or accreditation

‘Real’ e-invoicing versus

electronic exchange of

invoices

E-invoicing processes (e.g. ERP integrated

versus outsourced)

Post-audit

Public consultation on

the evaluation of invoicing rules

Electronic invoicing in

practice

Public Consultation on the evaluation of invoicing rules – some highlights

eInvoicing Directive 2010/45/EU

1) E-invoicing requirements

Source: Results of the open public consultation on the evaluation of invoicing rulesDate: 20/09/2018

Possible revisions to the Directive

2) Simplification of invoicing rules

3) Harmonization of invoicing rules

4) Cash accounting regime

5) Archiving rules

Further guidance on ‘business controls creating a reliable audit trail’

Simplification of invoice references; broadening the scope of simplified invoices

Uniform time limit for all transactions, and uniform rules on self-billing.

Expanding the scope

Common storage periodRemove requirement to store original format

eProcurementDirective 2014/55/EU

eProcurement Directive 2014/55/EU

A short recap

Definition of e-invoice

invoice that has been issued,

transmitted and received in a

structured data format which allows

for its automatic and electronic

processing

Formats & specifications

The data can be automatically read from the document into

computer systems, in a

standardized way

Scope

Mandatory for all contracting authorities and contracting entities to receive and process eInvoices complying with the European

Standard

Objectives

Definition of a common European

standard on eInvoicing at semantic

level and additional standardization

deliverables

eProcurement Directive 2014/55/EU

Timeline

Directive 2

014/5

5/E

U e

lectr

onic

in

voic

ing in p

ublic p

rocure

ment

CEN

TC 4

34 b

egin

s t

he d

efinitio

n

of th

e E

uro

pean S

tandard

on

eIn

voic

ing

Euro

pean S

tandard

on e

Invoic

ing

published in t

he O

ffic

ial Jo

urn

al

All M

em

ber

Sta

tes c

entr

al entities

com

ply

with D

irective

All M

em

ber

Sta

tes local entities

com

ply

with D

irective

16.04.2014

18.04.2020

18.04.2019

eProcurement

Mandatory B2G e-invoicing

Impact on the Taxpayer

Trends and Upcoming changes

Overview

E-invoicing in Public ProcurementMandatory as from 18 April 2019

Mandatory B2B e-invoicingMore and more countries – e.g. Italy – mandate electronic invoicing

Clearance modelsGreece will start preparing for the introduction of its clearance model by 2020

System impactRedesign ERP systems to meet challenging requirements of tax authorities.

Industry initiativesAuthorities are kicking off industry focused e-invoicing projects (e.g. healthcare)

E-invoicing and e-reporting to tax

authorities largely impacts businesses

Q&A

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

© 2018 Deloitte LLP. All rights reserved.

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.