E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on
e-invoicing – TASK 1
Pieter Breyne – PwC Belgium
Jeroen Verheecke – PwC Belgium
Sander Van der Meulen – PwC Belgium
March 2012
Agenda
 Enterprises sending and/or receiving e-invoices
- General
- Per entity size
- Per entity sector
 Invoices sent and/or received
- Per type
- Per commerce transaction
 E-invoicing technologies used by enterprises
 Drivers and obstacles for e-invoicing adoption by enterprises
 Process and controls applied by enterprises
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
2
Enterprises sending and/or receiving e-invoices
EU: Eurostat 2007 - 2010
60%
50%
40%
30%
20%
10%
0%
2007
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
2008
2009
2010
March 2012
3
Enterprises sending and/or receiving e-invoices
EU: Eurostat 2010
Leaders (> 40%)
Average (20 – 40 %)
Laggards (< 20%)
N/A
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
4
Enterprises sending and/or receiving e-invoices
 Increasing use of e-invoicing across Europe (only few exceptions)
 The data is NOT comparable to the data available for 2011, due to
the use of different variables:
- 2010: sending and/or receiving all types of e-invoices
- 2011: sending and/or receiving only in a standard structure
 Large differences within EU-countries with Italy, Lithuania and
Latvia as leading countries
 Euro area ahead of EU 27
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
5
Enterprises sending and/or receiving e-invoices
EU: Eurostat 2011
80%
70%
60%
50%
40%
30%
20%
10%
0%
Enterprises sending e-invoices in a standard structure suitable for automatic processing
Enterprises sending e-invoices NOT suitable for automatic processing (e.g. emails, email attachement in PDF format)
Enterprises receiving e-invoices in a standard structure suitable for automatic processing
Enterprises sending e-invoices (suitable OR NOT for automatic processing)
Enterprises sending / receiving e-invoices in a standard structure suitable for automatic processing
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
6
Enterprises sending and/or receiving e-invoices
 Large differences within EU-countries
 More structured e-invoices are received than sent (only few
exceptions)
 More unstructured e-invoices are sent than structured ones
 Finland is well ahead, while Hungary is clearly running behind
Remarks:
 The data does not include the financial sector
 Data for the following variables are not available:
- Enterprises receiving e-invoices NOT suitable for automatic processing is
lacking
- Enterprises receiving e-invoices (suitable OR NOT for automatic processing)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
7
Enterprises sending and/or receiving e-invoices
per entity size
EU: Eurostat 2011
SMEs (10-249 empl)
LE (>= 250 empl)
ME (50-249 empl)
SE (10-49 empl)
All enterprises (>= 10 empl)
0%
10%
20%
30%
40%
50%
60%
70%
Enterprises sending / receiving e-invoices in a standard structure suitable for automatic processing
Enterprises sending e-invoices (suitable OR NOT for automatic processing)
Enterprises receiving e-invoices in a standard structure suitable for automatic processing
Enterprises sending e-invoices NOT suitable for automatic processing
Enterprises sending e-invoices in a standard structure suitable for automatic processing
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
8
Enterprises sending / receiving e-invoices per
entity size
Spain: E-invoicing dissemination plan 2011
LE (>= 250 empl)
ME (50 - 249 empl)
SE (10 - 49 empl)
Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Enterprises receiving electronic invoices in standard format enabling automatic processing
Enterprises sending electronic invoices in a format not suitable for automatic processing
Enterprises sending electronic invoices in a standard format suitable for automatic processing
Enterprises sending electronic invoices
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
9
Enterprises sending / receiving e-invoices per
entity size
Poland: Central Statistical Office 2010
LE (>= 250 empl)
ME (50-249 empl)
SE (10-49 empl)
Total
0%
5%
10%
# enterprises receiving e-invoices
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
15%
20%
25%
# enterprises sending e-invoices
March 2012
10
Enterprises sending and/or receiving e-invoices
per entity size
 Use of e-invoices (structured or not structured) sent and received
increases with entity size (EU-wide)
 Similar results are applicable for PL & ES data, although small
enterprises send little more non-structured e-invoices than larger
companies in ES
Remarks:
 The data does not include the financial sector
 Data for the following variables are not available:
- Enterprises receiving e-invoices NOT suitable for automatic processing is
lacking
- Enterprises receiving e-invoices (suitable OR NOT for automatic processing)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
11
Enterprises sending vs. receiving e-invoices
Europe: Itella 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
# of enterprises sending electronic invoices
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
# of enterprises receiving electronic invoices
March 2012
12
Enterprises sending e-invoices
Europe: Itella 2010 & Eurostat 2011
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Itella (2010)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Eurostat (2011)
March 2012
13
Enterprises sending (vs. receiving) e-invoices
 More e-invoices are received than sent in 2010 (only few exceptions)
 When comparing Eurostat 2011 with Itella 2010 data:
- Only invoices sent (all types) could be compared, because of
missing variable in Eurostat 2011 data
- Comparison not reliable because of large differences with
previously mentioned conclusions, possibly due to:
• Different sample / sampling method
• Description of data not fully clear in Itella 2010 data
Remark:
 Only data of 14 EU-countries (+ Russia and Norway) is available
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
14
Enterprises sending and/or receiving e-invoices
per sector
EU: Eurostat 2011
Telecommunications
Trade of motor vehicles and motorcycles
Wholesale trade, except of motor vehicles and motorcycles
Travel agency; tour operator reservation service and related…
Repair of computers and communication equipment
Wholesale and retail trade; repair of motor vehicles and…
Manufacture of motor vehicles, trailers and semi-trailers, other…
Manufacture of beverages, food and tobacco products
Information and communication
Computer programming, consultancy and related activities,…
Electricity, gas, steam, air conditioning and water supply
Transportation and storage
Accommodation
Publishing activities; motion picture, video & television…
Manufacture of basic metals & fabricated metal products…
Manufacture of coke, refined petroleum, chemical & basic…
Manufacture of products based on: food, beverages, tobacco,…
Manufacture of wood & products of wood & cork, except…
Retail trade, except of motor vehicles and motorcycles
Manufacture of computers, electric & optical products, electrical…
Manufacture of electrical equipment, machinery and equipment…
Manufacture of furniture and other manufacturing; repair and…
Professional, scientific and technical activities
Manufacture of computer, electronic and optical products
Construction
Administrative and support service activities
Manufacture of textiles, wearing apparel, leather and related…
Activities for rental and leasing, employment, security &…
Accommodation and Food and beverage service activities
Real estate activities
0%
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
5%
10%
15%
20%
25%
30%
35%
March 2012
15
Enterprises sending and/or receiving e-invoices
per sector
 Only small spread between different sectors, however:
- Mapping done based on activities (that are often overlapping
and too detailed) rather than sectors
- Not all sectors are covered
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
16
Invoices sent by enterprises per type
Europe: Itella 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
In-house Print
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Outsourced Print
Email
Fully Electronic
March 2012
17
Invoices received by enterprises per type
Europe: Itella 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Paper process
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Paper scanned for e-process
Email
Fully Electronic
March 2012
18
Invoices sent and received by enterprises per type
 Majority of invoices are still sent and received on paper
 Very small share of invoices is fully electronic or sent via e-mail (EUwide)
Remark:
 Only data of 14 EU-countries (+ Russia and Norway) is available
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
19
E-invoices sent by enterprises per commerce
transaction
EU: Factuurmonitor 2008
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
B2G
B2C
Total
Micro (1-9)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Small (10-49)
B2B
Medium (50-249)
Large
March 2012
20
Invoices sent per commerce transaction
Denmark: Interoperability of e-invoicing 2007
70%
60%
50%
40%
30%
20%
10%
0%
B2B
B2B foreign
B2G
B2C
2007
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
21
E-invoices sent by enterprises per commerce
transaction
 Use of sent e-invoices increases with entity size
 No significant differences (EU-wide) between commerce
transactions (B2B / B2C / B2G)
 However, in DK the large majority of enterprises sending einvoices operate in the B2B segment
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
22
E-invoicing technologies used by enterprises
EU: PwC Study 2005 & 2009
EDI
electronic invoice presentment and payment
electronic bill presentment and payment (EBPP)
advanced electronic signatures
implemented (2009)
qualified electronic signatures
implemented (2005)
scanning
email (pdf)
supplier e-Invoicing portal
don't know
0%
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
10%
20%
30%
40%
50%
60%
70%
80%
March 2012
23
E-invoicing technologies used by enterprises
EU: PwC Study 2005 & 2009
EDI
electronic invoice presentment and payment
electronic bill presentment and payment (EBPP)
advanced electronic signatures
will implement before 2013
qualified electronic signatures
will implement before 2011
scanning
email (pdf)
supplier e-Invoicing portal
don't know
0%
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
10%
20%
30%
40%
50%
60%
70%
80%
March 2012
24
E-invoicing technologies used by enterprises
The Netherlands: Factuurmonitor 2008 & 2010
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
email
EDI
webportal
2008
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
online banking
2010
March 2012
25
Format of e-invoices used by enterprises
The Netherlands: Factuurmonitor 2008
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
PDF
EDI
XML
HTML
Excel
Word
2008
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
26
Format of e-invoices sent vs. received by
enterprises
Czech Republic: Czech Statistical Office 2011
70%
60%
50%
40%
30%
20%
10%
0%
PDF
XML, etc.
Issuer
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
EDIFACT
Recipient
March 2012
27
Format of e-invoices sent vs. received by
enterprises
Austria: Billentis 2011
XML/EDI
XML/EDI
Web
Web
PDF
PDF
0
Large (250+)
20
40
Medium (50-249)
60
Small (10-49)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
80
0
20
Large (250+)
40
Medium (50-249)
60
80
Small (10-49)
March 2012
28
E-invoicing technologies used by enterprises
 The top technologies used (EU-wide) are:
- E-mail (pdf-form)
- Scanning (of paper invoices)
- EDI
 Another important technology used is electronic bill (B2C) & invoice
(B2B) presentment and payment
 Trends:
- Electronic invoice presentment & payment and scanning increases,
while EDI decreases from 2005 to 2009
- No data available to analyse the use of e-mail from 2005 to 2009
- Small differences in technologies used from 2008 to 2010 in NL.
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
29
E-invoicing technologies
 No clear winner for future e-invoicing technologies
 The data related to used technologies is difficult to compare due to:
- Other country-specific data; e.g. split of sent vs. received e-invoices
(AT)
- Other variables for used technologies, meaning more generic
(country-specific) vs. more specific (EU-wide); e.g. portals
- No clear distinction in channels and formats
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
30
Drivers for e-invoicing adoption by enterprises
EU: PwC Study 2005 & 2009
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2005
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
2009
March 2012
31
Drivers for e-invoicing adoption by enterprises
(issuer vs. recipient)
Austria: e-Rechnung – WKO 2011
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Issuer
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Recipient
March 2012
32
Drivers for e-invoicing adoption by enterprises
The Netherlands: Factuurmonitor 2008 & 2010
30%
25%
20%
15%
10%
5%
0%
Savings issuer
Customer
wish
Get paid
sooner
Savings
recepient
Customer
demand
2008
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
Improve
working
capital
Maintain
position
More traffic
to website
More sales
options
Customer
loyalty
2010
March 2012
33
Drivers for e-invoicing adoption by enterprises
 The top 3 drivers for e-invoicing adoption in EU countries are:
- Cost savings
- Efficiency increase
- Faster payment
 Another important driver could be customer and supplier
preferences
 No clear trend between 2008 and 2010 data
 EU-wide data is similar to data from Austria and The Netherlands
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
34
Obstacles for e-invoicing adoption by enterprises
EU: PwC Study 2005 & 2009
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2005
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
2009
March 2012
35
Obstacles for e-invoicing adoption by enterprises
The Netherlands: Factuurmonitor 2008 & 2010
25%
20%
15%
10%
5%
0%
2008
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
2010
March 2012
36
Obstacles for e-invoicing adoption by enterprises
 The main obstacles for e-invoicing adoption in EU countries are:
- Customer and supplier readiness / acceptation
- Complexity / readiness of internal systems
- High investment
 Importance of following obstacles has doubled from 2005 to 2009:
- Unclear regulation / legislation
- Supplier readiness
 EU-wide data is similar to data from The Netherlands, although
other options are given
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
37
Process and controls applied by enterprises
EU: PwC Study 2005 & 2009
60%
50%
40%
30%
20%
10%
0%
exchange of
orders or delivery
notes via EDI
customer eInvoicing
agreements
supplier eInvoicing
agreements
parallel exchange
of paper invoices
2005
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
automated
matching
automated
approvals
intercompany eInvoicing
agreements
don't know
2009
March 2012
38
Process and controls applied by enterprises
 Reduction in exchange of orders or delivery notes via EDI is shown
 Increase in parallel exchange of paper invoices between 2005 and
2009
 Figures on other process and controls applied by enterprises in 2005
and 2009 are almost identical
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
39
Conclusion
 Analysis of the data:
- Increasing use of e-invoicing EU-wide with large differences between
countries, although the majority of invoices is still on paper
- More unstructured e-invoices than structured ones
- The main drivers for e-invoicing adoption are cost savings, efficiency
increase and faster payment, while important obstacles are the
complexity, acceptation and high investment
 Data collection:
- Different and incomplete data available country-specific vs EU-wide
(not comparable)
- Data too much focused on use of e-invoicing (not on e-invoices)
 Collect data centralised + decide on what to collect
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
40
Conclusion of our break-out
 Preferred option – Ask Eurostat (on yearly basis – at least till 2020)
Sending
Receiving
Number
Number
Electronic – structured
%
%
Electronic – unstructured
%
%
Paper form
%
%
Total number of invoices
 Alternatives (can be in parallel with preferred option)
 Option 1 – Ask via the national fora
 Standard questionnaire (Eurostat + other questions)
 Option 2 – Ask an external party to run a yearly survey
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
41
Conclusion of our break-out
 Activities for Activity 1
 Coordinate with Eurostat
 Create a standard questionnaire
 Continue to collect information from national fora and international
studies
 Continue to analyse gathered information (deadline September 2012
for first comprehensive monitoring analysis)
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
42
Appendix – Inventory of available data sources
 EU/Europe-wide data sources:
 Eurostat, 2007 – 2011
 Itella, 2011
 PwC Study, 2005 & 2009
 Factuurmonitor, 2008
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
44
Appendix – Inventory of available data sources
 Country-specific data sources:
 The Netherlands: Factuurmonitor, 2008 & 2010
 Spain: E-invoicing dissemination plan, 2011
 Poland: Central Statistical Office, 2010
 Denmark: Interoperability of e-invoicing, 2007
 Austria: e-Rechnung – WKO, 2011 & Billentis, 2011
 Czech Republic: Czech Statistical Office, 2011
E-invoicing uptake in the EU
EU Multi-Stakeholder Forum on e-invoicing – TASK 1
March 2012
45