Invoice Data Content Sealing “Electronic Invoicing” FOR DISCUSSION PURPOSES UNECE, MEETING 4 APRIL 2005 *connectedthinking PwC INVOICE DATA CONTENT *connectedthinking PwC Mandatory invoice details in accordance with the Directive’s list (1) • Date of issue of the invoice (25) Greece: In case of domestic transactions • A sequential number, based on one or more series, Lithuania: In case of domestic transactions where the customer has a Lithuanian VAT number which uniquely identifies the invoice (25) • VAT identification number of supplier (25) Portugal and Slovak Republic: Not specified • VAT identification number of customer: Spain: In case of domestic transactions carried out by Spanish VAT established taxpayers • in case he is liable to pay the VAT due (25) • in other cases (8) Austria: In case of services supplied according to art. 28b, C, D, E, F of the Sixth Directive Belgium: In case the customer uses his Belgian VAT number, the VAT number has always to be mentioned if the supplier is established in Belgium and it concerns a local supply Czech Republic: If the supply is rendered to a taxable person • Full name and address of supplier (25) • Full name and address of customer (25) • Quantity and nature of the goods supplied or the extent and nature of the services rendered (25) • Date of supply of goods or rendering of services or date on which payment of account was made if different from invoice date (25) Between brackets is indicated the number of EU Member States requiring this invoice detail © 2005 PricewaterhouseCoopers Page 3 FOR DISCUSSION PURPOSES ONLY Mandatory invoice details in accordance with the Directive’s list (2) • Price per unit (23) • Any discounts or rebates not included in the unit price (23) • Taxable amount per rate or exemption (25) • VAT rate applied (25) • VAT amount payable in the national currency (25) • Where an exemption is involved or where the customer is liable to pay VAT, reference to • the provision of the 6th Directive (18) • national legislation (25) • any other indication (18) • Where the person liable to pay the tax is a tax representative; the identification number for VAT purposes, together with full name and address (13) Between brackets is indicated the number of EU Member States requiring this invoice detail © 2005 PricewaterhouseCoopers Page 4 FOR DISCUSSION PURPOSES ONLY Mandatory invoice details violating the EU Directive (1) • Belgium: capacity of VAT representative • Greece: reference to delivery note (if applicable) • Hungary: • Statistical number of the product if reduced rate or VAT exempt • Method of payment and due date for the payment • Number of copy and total number of copies • Page number and total number of pages • Total taxable amount • VAT amount per VAT rate • Total amount inclusive VAT © 2005 PricewaterhouseCoopers Page 5 FOR DISCUSSION PURPOSES ONLY Mandatory invoice details violating the EU Directive (2) • Italy: • Capacity of the VAT representative • Reference to transport documents (if applicable) in case of deferred invoices • Arm’s length value of the product in case of discounts or rebates • VAT amount per VAT rate • Malta: the type of supply by reference to a predefined category • Poland: • Statistical number of the product if reduced rate or VAT exempt • Total amount due in figures and words • Slovak Republic: reference to the Member State of arrival for intra-Community supplies of goods/services © 2005 PricewaterhouseCoopers Page 6 FOR DISCUSSION PURPOSES ONLY Mandatory invoice details violating the EU Directive (3) • Where an exemption is involved or where the customer is liable to pay VAT, some Member States do still not accept a reference to the appropriate provision of the 6th Directive or any other indication: • Greece • Hungary • Italy • Latvia • Lithuania • Portugal • Slovenia • Specific language requirements: Hungary • Specific currency requirements: Czech Republic and Hungary - Italics = those countries who have other infringements as well © 2005 PricewaterhouseCoopers Page 7 FOR DISCUSSION PURPOSES ONLY Sealing Electronic Invoicing *connectedthinking PwC E-invoicing – Is there a compliant model for VAT? Acceptance by the customer • No licenses/authorisations required Authenticity of origin and integrity of content through • Use of EDI • Advanced electronic signature • Other electronic means Applicable for issuing the e-invoices by supplier, customer (SBI) or third party (outsourcing) © 2005 PricewaterhouseCoopers Page 9 FOR DISCUSSION PURPOSES ONLY Use of EDI VAT possibility I EDI Advanced electronic signatures Other electronic means • Recommendation of the Commission 19 October 1994: • Electronic transfer • from computer to computer • using an agreed standard to structure the message • in a computer readable format • that can be processed automatically unambiguously • Agreement relating to the exchange provides for the use of procedures guaranteeing authenticity of the origin and integrity of the data • Option: creation of summary statement on paper “VAT” EDI has its own broadly applicable definition © 2005 PricewaterhouseCoopers Page 10 FOR DISCUSSION PURPOSES ONLY VAT possibility II – Advanced electronic signatures Use of EDI Advanced electronic signatures Other electronic means • Art. 2 (2) of the Directive on electronic signatures • • • • Connected to the signer in a unique way Possibility to identify the signer Realisation under exclusive control of the signer Possibility to trace every change afterwards Electronic signature Advanced electronic signature • Options: • Qualified certificate (Art. 2(6)) • Secure-signature creation device (Art. 2(10)) © 2005 PricewaterhouseCoopers Qualified signature Page 11 FOR DISCUSSION PURPOSES ONLY VAT possibility III – Other electronic means Use of EDI Advanced electronic signatures Other electronic means Buy Side Sell Side Collection Server ERP System Translation Engine Electronic Bill Presentment Server Invoice Risk of invoicing twice: paper & electronic ! © 2005 PricewaterhouseCoopers Page 12 FOR DISCUSSION PURPOSES ONLY Use of EDI Summary e-invoicing possibilities Advanced electronic signatures Other electronic means A T B E C Y C Z D K E E FI F R D E E L H U I E I T L V L T L U M T P L P T S K S L E S S E N L U K 1 2 3 * N/ A 4 1. Acceptance of EDI to send e-invoices 2. Obligation to issue paper summary document 3. Obligation to use a qualified certificate and a secure signature-creation device 4. Acceptance of ‘other electronic means’ to send e-invoices * Time stamping is required as well Status 15 February 2005 – www.globalvatonline.com © 2005 PricewaterhouseCoopers Page 13 FOR DISCUSSION PURPOSES ONLY Categorisation Member States e-invoicing • Green countries: • Belgium, Denmark, Estonia, Finland, Ireland, Sweden, the Netherlands and the UK • Red countries: • Countries that do not comply with the 6th Directive: Malta, Poland and Slovenia (no acceptance of EDI) • Other ‘bad examples’: Czech Republic, Germany, Greece, Italy, Lithuania and Portugal © 2005 PricewaterhouseCoopers Page 14 FOR DISCUSSION PURPOSES ONLY Sources: •www.globalvatonline.com •PricewaterhouseCoopers << A Guide To VAT in the EU of 25 Countries >> •PricewaterhouseCoopers << E-invoicing and E-archiving >> © 2005 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers. *connectedthinking PwC