Obligation or devotion. It doesn't matter what led you to install an electronic invoicing system in your business. The fact is that you've either already done it or you're going to have to do it. Perhaps, like most people, you hate being told what to do. However, we regret to inform you that digitizing your company's invoices is one of those things that, if you haven't done it yet, you must do. The relationship between B2B and electronic invoicing is a necessity, but not only because it is required by law. We help you see it as an investment in the present and the future and reveal the many advantages it has, both today and tomorrow.
Understanding the relationship between B2B and electronic invoicing
It is foolish to waste the opportunities that come our way in any area of life. However, human beings are very prone to doing so. That is why, now that we find ourselves in a new global and digital landscape, it would be absurd not to enjoy the benefits of new technologies. This is how some companies and, above all, governments around the world have understood it.
Because of this idea, the relationship between the B2B sector and electronic invoicing is radically different from what it was just a few years ago. The B2B (Business To Business) is increasingly linked to the use of digital technologies. This is both by choice and by necessity, as government agencies require it in many cases.
In fact, some governments are the first to have decided to lead by example. Without going any further, electronic invoicing has been mandatory in Spain for any transaction carried out by the Administration since 2013. Specifically, under Law 25/2013. The advantages of issuing and receiving e-invoices are highly valued by governments:
- It guarantees fiscal and tax traceability of the numerous operations that can be carried out using a digitalized system.
- They can have a clear and up-to-date record of all the financial transactions and movements they carry out.
- They generate an environmental benefit by saving paper and other materials, which is so important in these times.
Even so, the B2B sector B2B sector, understood as only including private companies, is still resistant. It is true that more and more companies are choosing to implement electronic invoicing software. But there are still many that have yet to do so.
Who is required to issue electronic invoices?
That's right. All those organizations that still don't use digital invoicing systems, their days are numbered. And not only because of how the business world is evolving, but also because of what the legal world demands.
In Spain, we have had the famous Create and Grow Law has been on everyone's lips. Companies, the media, governments, organizations... The fact is that this regulation will come into force on November 10, 2022. Thus, with its publication in the BOE (Official State Gazette), the current relationship between the B2B sector and electronic invoicing is further strengthened. This law mainly states that:
- Any company is required to issue and receive electronic invoices in all its commercial dealings with other organizations, whether they are private companies, public bodies, or self-employed individuals (i.e., B2B).
- Any recipient has the right to request a copy of the electronic invoice free of charge for a period of four years from the date it was issued.
- Electronic invoices issued must comply with the provisions of the specific regulations on invoicing, which we detail below.
- Any company that does not offer the option of receiving electronic invoices or does not allow access to them may be subject to financial penalties of up to €10,000.
Therefore, the e-invoicing is no longer just a possibility, but has become an obligation for all types of businesses. In addition, companies must implement an electronic invoicing system within a timeframe that will depend on the billing volume of each business. According to this:
- Companies with a turnover of more than €8 million per year must do so within a maximum period of one year.
- Organizations with a turnover below the deadline is extended to two years.
So, if nothing unusual happens with the entry into force of the Create and Grow Law, the B2B sector and electronic invoicing will be 100% integrated within a period that will run next month until November 10, 2024. Time is of the essence.
What should e-invoices between companies look like?
Policies such as the Create and Grow Act are the best example that in the the battle between e-invoicing and conventional invoicing, digital is prevailing over analog. Convenience, agility, speed... However, electronic invoicing and B2B must fully comply with the established standards. Likewise, electronic invoices between companies must meet three minimum requirements:
- Must contain the mandatory fields set forth in Article 6 of the Invoicing Regulations (Royal Decree 1496/2003, of November 28). These are: invoice number and series, date of issue, tax information of the issuer and recipient, concept, amount, and taxes.
- It must be authentic and validated by electronic data interchange (EDI), electronic signature, or any instrument approved by the Spanish State Tax Administration Agency (AEAT).
- It must be accepted by the recipient, and legible and contain real and accurate information. If you detect errors and make corrections to invoices after they have been issued, instead of modifying them, you must create and send a corrective invoice.
As you can see, this law regulating B2B electronic invoicing is already quite old. Specifically, it dates back to 2003. Since then, the market and the labor landscape have changed so much that the regulation has also been modified. And it will continue to do so, given how rapidly the digital world is evolving.
Regulation of the B2B sector and electronic invoicing in other countries
It is true that so far we have focused on the relationship—especially the legal one—between the B2B world and online invoicing in Spain. The Crea y Crece law has been the main focus up to this point. And we haven't even talked about systems such as TicketBAI or the SII (AEAT Tax Information Supply).
However, at easyap we have worked for companies from many parts of the world and all kinds of sectors. Thanks to this experience and the simple fact that this is our field, we know how this relationship is legally regulated in other countries. Not all countries are at the same level, but there are many that regulate B2B and digital invoicing for years:
- France: the government requires companies to adhere to the new electronic invoicing system between 2024 and 2026. As in Spain, the deadline for this will also depend on the turnover of each organization.
- Italy: B2B electronic invoicing has been mandatory since 2019 and must be done through a national platform called SdI. This serves as an intermediary between issuers and recipients, validating all invoices that are issued.
- Poland: In Poland, the regulation for B2B electronic invoices came into force in 2022 and will be mandatory in 2023.
- Belgium: although the use of B2B electronic invoicing is voluntary, the federal government has already announced that it will soon be mandatory.
These are just four examples from European countries. At the continental level, the EU itself also regulates B2B electronic invoicing with Directive 2010/45/EU. However, the Old Continent is not the only one advocating for B2B, or even B2C, electronic invoicing. Australia, the United States, South Africa, and New Zealand are other nations that promote B2B electronic invoicing systems, especially for use with the public administration.
In conclusion, B2B electronic invoicing is a reality, as well as an obligation in many cases. Therefore, implementing it in your business is a necessity and not just an opportunity. The present forces you to do so, but above all, the future. And who better than easyap to do it? Get in touch with us and take advantage of our more than 20 years of experience and the international and versatile nature that backs us up.
