|
Note this newsletter is shared to ECR Baltic contacts with the permission of the Author.
E-Invoicing News: 2014-2 | 2014-1 | 2013-6 | 2013-5
+++++++++++++++
E-Invoicing News 2014-2
May 2014
In this issue
1. Brazil – much more than just Carnival and the football World Cup
2. Electronic receipt – the little sister of the invoice
3. Choose an association for interoperability among service providers
+++++++++++++++
1. Brazil – much more than just Carnival and the football World Cup
Readers of this newsletter are probably aware about the country with the highest adoption rate of E-Invoices. Brazil already took this leading global role several years ago. Recently I asked the former project manager, Newton Oller, about the status in his country.
Today they have nearly 1 billion NFe messages (remark: electronic invoices in the Brazilian format) issued in a month, and around 35 million per day. The number of issuers is around 1 million. This is around double the volume of Mexico, the second largest country in terms of E-Invoicing volume today, and this is by no means the end of the electronic story in Brazil…
Newton Oller currently continues to be the National Leader of the Brazilian project of electronic receipts for retailers.
+++++++++++++++
2. Electronic receipt – the little sister of the invoice
Tills at the point of sales are increasingly connected electronically to forward the data of the receipts/payment slip to the tax authorities and/or customers. At least in Chile there is a closed electronic loop between the retailers, tax authorities and the customers (who provide a unique ID at the point of sales during their purchase process). Similar models are also practised in Mexico, some Eastern Asian countries and in parts of Europe (e.g. Croatia). The content of receipts has a high overlap with invoices and can therefore be processed by the same service providers as for electronic invoices (as done for example in Chile and Croatia). The total volume of receipts (paper and electronic) is estimated by experts to exceed that of invoices by a factor of 3-12.
+++++++++++++++
3. Choose an association for interoperability among service providers
It is only in Europe however that we can count more than 600 service providers for E-Invoicing. The probability is high that a majority of trading partners of a user are registered on different platforms and that the E-Invoice exchange with them could result in additional barriers (administration, setup, supported message types, message content, formats, processes and costs). It would therefore be welcome to see a stronger cooperation among platform operators. This is currently developing in an increasing number of operator associations. Some names of international associations are EESPA, OpenPEPPOL, GENA, Hub Alliance, GS1 and Simplerinvoicing. OpenPEPPOL recently announced its 100th member. Nevertheless, the author believes that a very long journey is still ahead of us until the “roaming of electronic invoices and other messages” is a standardized process and as easy as using a mobile phone.
Currently, a very lively discussion is in progress in a LinkedIn group. Please take part in the discussion "Interoperability in e-financial supply chain, not that complex and yes it can": http://t.co/t7KhKLSyjQ.
+++++++++++++++
Kind regards,
Bruno Koch
Billentis
Unterer Rebweg 23
9500 Wil
Switzerland
http://twitter.com/kochbillentis
www.billentis.com
Readers of E-Invoicing News are invited to submit future editorial contributions with relevance for an international readership. Please contact: einvoicing-news@billentis.com.
While every care has been taken to ensure the accuracy of this newsletter, the facts, estimates and opinions stated are based on information and sources which, while we believe them to be reliable, are not guaranteed. The information contained in this newsletter is briefly summarised and should never be construed as being complete. In particular, it should not be relied upon as being the sole source of reference in relation to the subject matter.
+++++++++++++++
+++++++++++++++
E-Invoicing News 2014-1
February 2014
In this issue
1. European Market Outlook
2. Prediction for other regions of the world
3. New market report – sponsoring opportunities
+++++++++++++++
1. European Market Outlook
Market development in 2013 was again dynamic, although the increase of transaction volume, as well as industry turnover missed the (high) predictions. Overall, European market growth for electronic processes is strong and sustainable. Organizations in the public and private sector are under pressure more than ever to reduce costs and to improve their Cash Management. Combined with the rich solution offering, these benefits are sure to result in further strong market growth for electronic invoicing and related topics. With an estimated volume growth of 19% for 2014, E-Invoicing is currently one of very few growing markets.
Growth rates above average for B2B/B2G/G2B might be expected in all European countries with obligations in place in 2014: Austria, Italy, Norway and Portugal. In the B2C segment, Finland expects a sharp rise of B2C volume due to the substitution of the national direct debit with E-Bills.
The processed B2B volume is expected to reach around 4 billion E-Invoices this year (corresponding to 24% of all European B2B/B2G/G2B invoices). B2C volume is estimated to reach 2.4 billion (14% penetration).
Solution provider landscape:
At least 24 operators of E-Invoicing networks are expected to each process more than 20 million E-Invoices/E-Bills this year. For the vast majority of today’s 600 operators, the annual E-Invoicing volume still lies below 5 million. The metric “Turnover/E-Invoice” dramatically dropped in 2013 and will probably decline again by 13-17% p.a. in the coming years. Of 175 operators analysed, 75% were profitable, but the average profit is very minimal. First generation operators built their applications 10-15 years ago. They increasingly re-design and re-build their solutions or decide to use white label services from others, and instead focus on value added services. Others invest in value added services and/or marketing & sales activities to gain additional market shares.
For a more detailed market overview, see:
www.billentis.com/einvoicing_ebilling_market_overview_2014.pdf
+++++++++++++++
2. Prediction for other regions of the world
North America is expected to take a significant step forward in 2014. Therefore, the number of E-Invoicing network operators can also be expected to sharply increase.
Some Latin American countries may expect a further boost in 2014. This year Argentina will extend the obligation for E-Invoicing to new sectors: Almost 350,000 companies are affected by this extension. Between now and 2017, Chile is implementing an E-Invoicing obligation, affecting in the first phase large corporations. In Mexico, probably 500,000 small companies are currently affected by an E-Invoicing obligation.
The E-Invoicing volume in Russia might double this year. Strong growth rates may also be expected for Turkey (E-Invoicing obligation for certain industries). The federal administration of Hong Kong has collaborated with many banks to develop a system for Electronic Bill Presentment and Payment, addressing mainly the consumer segment. Vietnam intends to follow the Latin American model, pushing E-Invoicing towards a control vehicle for the tax authorities.
+++++++++++++++
4. New market report – sponsoring opportunities
E-Invoicing and related topics are growing dynamically around the world. In this segment, steady changes are more the rule than the exception. Market demand for up-to-date information is huge. Therefore, I will be issuing a new international market report in the spring of 2014 to help interested parties find the appropriate solution provider. Sponsoring applications are possible from now, see details on the site: www.billentis.com/reportbooking.htm
+++++++++++++++
+++++++++++++++
E-Invoicing News 2013-6
December 2013
In this issue
1. European Multi-Stakeholder Forum published reports and recommendations
2. Belgian business federations commit to E-Invoicing
3. French parliament intends to push E-Invoicing in the public sector
4. New market report – sponsoring opportunities
5. Following the footsteps of the EXPP Summit
+++++++++++++++
1. European Multi-Stakeholder Forum published reports and recommendations
The Forum was set up two years ago by the Commission and brings together key actors from the private and public sectors of all member states. It provides a unique platform to exchange experience and best practices, which can pave the way for broad-scale adoption of E-Invoicing at both the national and EU level. The results are documented and can be found on the site
http://ec.europa.eu/enterprise/sectors/ict/e-invoicing/benefits/invoicing_forum_en.htm
+++++++++++++++
2. Belgian business federations commit to E-Invoicing
Besides the European Forum, similar multi-stakeholder fora have meanwhile been established in almost all European countries. Aligned with the European Forum, they follow similar objectives and principles.
The forum in Belgium recently announced promising results from their activities: Around three dozen professional groups have committed to encouraging their members, companies and professions to use electronic invoicing. The business federations have signed a protocol with the Minister of Administrative Simplification.
+++++++++++++++
3. French parliament intends to push E-Invoicing in the public sector
The French parliament voted in favour of an enabling act to establish a legal framework that would allow French public authorities to mandate E-Invoicing in ongoing contracts.
+++++++++++++++
4. New market report – sponsoring opportunities
E-Invoicing and related topics are growing dynamically around the world. In this segment, steady changes are more the rule than the exception. Market demand for up-to-date information is huge. Therefore, I will be issuing a new international market report in the spring of 2014 to help interested parties find the appropriate solution provider. Sponsoring applications are possible from now, see details on the site: www.billentis.com/reportbooking.htm
+++++++++++++++
5. Following the footsteps of the EXPP Summit
Johannes von Mulert has acted as managing director for the EXPP Summit since it was founded. He has organized nine very successful events on my behalf. After my withdrawal from the active event business, he decided to follow the footsteps and founded a new event with a similar focus.
The Exchange Summit as the official successor of the EXPP Summit will pick up the pace and bring together decision makers of the global electronic invoicing & supply chain management industries. For further details, please visit www.exchange-summit.com.
+++++++++++++++
It's Christmas time again and I just want to say “thank you”. It has been a pleasure for me to help so many customers achieve their goals, and I look forward to contributing to your success again in 2014. It has also been a great pleasure to provide the readers of this newsletter with E-Invoicing market information. There’s more to come, of course. The next newsletter will follow in February 2014.
I wish you a prosperous and happy New Year!
+++++++++++++++
+++++++++++++++
E-Invoicing News 2013-5
October 2013
In this Issue
1. Impressions of the EXPP Summit
2. Tremendous market acceleration in Russia
3. Deinvestments and new investments in the E-Invoicing industry
4. Important milestones ahead in Austria and Mexico
5. Potential impact of VAT gap in EU countries on E-Invoicing development
+++++++++++++++
1. Impressions of the EXPP Summit
More than 300 delegates from 41 countries participated in the EXPP Summit in Warsaw. Several private sector companies presented their success stories and public sector initiatives were visible everywhere. The European Commission gave an update about their E-Invoicing activities and related topics. A representative of the German multi-stakeholder Fora introduced the approach with the intention to address hundreds of thousands of businesses and administrations in Germany. Public sector representatives from Austria, Mexico, Sweden and Switzerland discussed best practice in the “User Forum Public Sector”. It seems that there is still much potential for improvement regarding addressing the states, municipalities and also the federal administration. Obliging suppliers to only send invoices electronically to the federal administration, as in Austria, Mexico, Norway and others turns out to be a major catalyst for the whole market development.
In the breakout session “Europe/Latam government exchange on E-Invoicing”, the panellists also gave an update regarding E-invoicing in their countries:
• In Chile, almost half of the countries’ invoices are exchanged electronically. The Chilean Parliament is currently discussing an obligation for E-Invoicing. The expectation for 2014 is that 100% of large corporations, and from 2016 all businesses, will apply E-Invoicing.
• In Greece, about 20,000 businesses currently exchange 12+ million E-Invoices. The annual growth rates are above 40%. Unique (and in the view of the author also leading in Europe) is the obligatory use of Fiscal Electronic Cash Registers in retail transactions. Also known as fiscal printers, these devices are able to gather VAT-relevant information and provide them in electronic format to the tax authorities.
• From July 2012 the Norwegian government mandated the use of E-Invoicing in the B2G segment based on PEPPOL specifications. In 2016, 100% of the B2G invoices shall be electronic. 34 operators compete as access points and help to significantly develop the market. From 2015, the outbound invoices G2B shall also be mandated in electronic format.
• This year, 280,000 businesses in Mexico have to exchange invoices electronically. In 2014, this number shall increase to 413,000.
Countries that have only annual increases of several hundreds or thousands of new businesses as new E-Invoicing users should challenge their past approach and onboarding methods. In the meantime very many countries show annual growth rates of at least several tens of thousands or often several hundreds of thousands new E-Invoicing users.
The E-Invoicing market in Europe and Latin America has achieved a mature level. Topics beyond the pure E-Invoicing have become increasingly important. One is the enrichment of E-Invoicing with payment and Supply Chain Finance features (Basware and MasterCard, for example, announced such an offer on the first day of the Summit). Tax compliance in a dematerialized document world increases on the priority list of corporate decision makers. TrustWeaver announced the availability of a new whitepaper “Tax-compliant global electronic invoice life cycle management” at the Summit.
Readers of this newsletter who missed the Summit but are interested in the presentations are welcome to visit www.expp-summit.com/presentations.php
+++++++++++++++
2. Tremendous market acceleration in Russia
In early October I followed a call for speakers to Russia. It was already my second presentation in a large event in Moscow within just 4 months. The interest of Russian organizations in electronic invoicing and document exchange was again very high. This is also reflected in the figures for market development. According to the speaker of the Federal Tax Information, Russian businesses expressed in a letter of intent their desire to exchange tax compliant electronic documents (compared to 105,000 in May of this year) by early October 250,000.
+++++++++++++++
3. Deinvestments and new investments in the E-Invoicing industry
Visa quits the investment in Syncada: US Bank has bought back the Syncada shares from Visa. Syncada is processing billions in payments and millions of invoices and trade documents.
In 2007, JPMorgan Chase acquired Xign, one of the leading US Order-to-Pay solutions at that time. Just 6 years later they shut it down.
Remark: It seems to be very challenging for most banks to compete as E-Invoicing service providers. Such services are increasingly demanding due to steady changes in international tax compliance issues, new technological developments and customer requirements for business process integration.
Tungsten was set to acquire OB10 and combine the E-Invoicing network provider with other assets in preparation for an initial public offering (IPO) this year. Tungsten also intends to acquire an identified bank. The strategic vision of Tungsten is to create a leading global trading network complemented with value added services like payment, Supply Chain Finance etc.
The internationally acting Taulia has experienced tremendous growth since it was founded in 2009 and is pacing to grow an additional 300% in 2013. Just recently, Taulia announced a fundraising of $18 million.
Remark: Strong growth is requiring growth funding. E-Invoicing and B2B networks are meanwhile recognized by many investors as excellent growing market segments. Therefore they are more than willing to invest in providers growing clearly above the market average.
+++++++++++++++
4. Important milestones ahead in Austria and Mexico
Austria mandates E-Invoicing of suppliers to the federal administration from January 2014. Only electronic invoices in structured format will be accepted. The statements in the press during the last few weeks have been unambiguous: “No electronic invoice – no payment”. I am eagerly looking forward to January 2014 to see if the message reached all affected market participants.
In Mexico, there seem to be obviously many companies that have not yet realized that they need to prepare their systems and processes for the new CFDI requirements by the end of this year. If so, it is high time to act.
+++++++++++++++
5. Potential impact of VAT gap in EU countries on E-Invoicing development
At the end of September, the European Commission published a memo about a study they sponsored. Here is an extract of the results:
“The VAT gap across all 26 Member States in 2011 accounted for €193 billion, or 1.5% of GDP. This amounts to 18% of the theoretical VAT (i.e. all expected revenue).
Italy (€36bn), France (€32bn), Germany (€26.9bn) and the UK (€19bn) contributed over half of the total VAT Gap in quantitative terms, mainly because these are the largest EU economies. In terms of ratio to their own GDP, Romania (€10bn), Greece (€9.7bn), Lithuania (€4.4bn) and Latvia (€0.9bn) were the countries with the largest VAT Gap in 2011.
The study shows a marked upward trend in the VAT gap in many member states since 2008, as a result of the economic crisis. This was especially the case in Spain, Greece, Latvia, Ireland, Portugal and Slovakia. On average across the EU, the VAT gap increased by 5 percentage points once the economic crisis hit.
Overall, what can be concluded from today's study and other econometric analysis is that tackling the VAT gap effectively requires a well-considered mix of both policy adjustments (e.g. broadening the tax base) and enforcement actions (e.g. stronger deterrents against evasion, improved audits and controls etc.).”
Improved audits and controls can be achieved with E-Invoices and E-Receipts.
Portugal reacted to improve audits and controls sooner than most other European countries. New requirements for E-Invoicing & reporting to the tax authorities will become mandatory from 2014. Other countries are expected to follow this step.
For reducing tax evasion at the points of sales, the fiscal printers will probably gain importance and offer the possibility to report the receipts in electronic format to the tax authorities.
As I mentioned repeatedly in several publications and presentations, I expect a significant merger of the topics E-Invoicing, E-Receipts and tax compliance driven by the combat against tax evasion. The potential reduction of the VAT gap of €193 billion should be worth Europe investing some billions. Will the EU find the right recipes and people able to stem such a tremendous project? On 28 November 2013, the Brussels Tax Forum will bring together high level tax experts from across the EU to focus specifically on how VAT can be made more efficient. This will be an opportunity to discuss the possibilities for improvements, to exchange ideas and share best practices. I am looking forward to the results and will give the readers of this newsletter an update in case of relevance for the E-Invoicing development.
Kind regards,
Bruno Koch
Billentis
Unterer Rebweg 23
9500 Wil
Switzerland
http://twitter.com/kochbillentis
www.billentis.com
Readers of E-Invoicing News are invited to submit future editorial contributions with relevance for an international readership. Please contact: expp13@billentis.com
While every care has been taken to ensure the accuracy of this newsletter, the facts, estimates and opinions stated are based on information and sources which, while we believe them to be reliable, are not guaranteed. The information contained in this newsletter is briefly summarised and should never be construed as being complete. In particular, it should not be relied upon as being the sole source of reference in relation to the subject matter.
+++++++++++++++
+++++++++++++++
| Follow ECR Baltic on Social Media: | ||||
 |
 |
 |
 |
 |
