We raise a very interesting question in this new blog article. Electronic invoices are a very real part of today's social and working landscape. But first of all, are you sure that they are mandatory today? Can you say this from your own experience? Have you wanted or had to adapt to the new digital paradigm? All these questions, and surely many others, have been on the minds of managers and financial executives at many companies for some time now. A time when the digital transformation of the world is changing everything. That is why, at easyap, we want to clarify what is true and what is not about mandatory electronic invoicing. We reveal all in the following lines.
When is electronic invoicing mandatory?
The mandatory electronic invoicing in Spain, for the time being, only applies to companies or businesses that have to carry out administrative procedures and formalities with the government. In other words, city councils, regional and autonomous governments, along with their dependent bodies and public institutions, are required by law to accept electronic invoices from companies and self-employed individuals.
The pace at which each labor sector develops varies greatly. However, the fact that we are in the midst of a digital digital has meant that all the players involved have been taking steps towards digitization. For their part, public administrations have been trying for several years to set an example and be a benchmark, and it is mainly to them that current legislation refers.
Likewise, the laws establishing mandatory electronic invoicing for commercial relations with the Administration are:
- Law 25/2013, which establishes the obligation for public administrations to accept digital invoices issued by any supplier of goods and/or services with which they work.
- Article 4 of the same previous law, that is, Law 25/2013. It requires all government suppliers to issue their invoices in electronic format. Within the category of supplier, the following types are also specified:
- Corporations and limited liability companies.
- Foreign companies that work with Spanish government agencies.
- Merged companies.
- Groups, economic funds, and investors of all kinds.
Therefore, as we can see, mandatory use of electronic invoices in Spain has only been in place for a few years. Specifically, since Law 25/2013, although, as indicated on the government website, mandatory electronic invoicing for the Administration came into force and became effective in 2015.
And between companies?
The fact is that, despite the socio-economic digitization of the world, many companies in multiple markets and sectors still do not manage their invoicing digitally. At the same time, digital transformation is a process that is championed by national and international institutions, but not so widely supported in B2B.
The COVID-19 pandemic has helped many companies join the online world by digitizing many of their processes. In fact, online billing figures and digital sales have increased during 2020. However, there is still a long way to go.
We still find businesses, executives, and financial specialists who, trapped in a somewhat outdated business model, are reluctant to implement technological solutions in their processes and daily work. The downside is that this fear of the new is still protected by legislation, as it is only is it mandatory to issue an electronic invoice in government-business relationships and not between companies and/or freelancers.
Examples of how mandatory electronic invoicing helps
We have already discussed this in other articles: the benefits of electronic invoicing for a CFO and for any digital company are numerous. And for those that are not yet digital, too, since they will inevitably have to join the digital transformation. Here we list them again in case you are one of those who still does not dare to take the leap:
- Considerable savings considerable savings in terms of money and time.
- Traceability of operations in a digitized system.
- Clear and up-to-date record of financial transactions and movements.
- Environmental benefit through savings in paper and by not using files and other materials.
Perhaps, after reading about these advantages, you think we are exaggerating. easyap because we sell a digital invoicing solution. Nothing could be further from the truth, as there are other countries and governments around the world that are also advocating for mandatory electronic invoicing with very positive results. In fact, these are protocols or programs that are being successfully implemented:
- PEPPOL, the continental commitment to digital invoicing consists, according to its own website, of a "set of technical specifications that can be implemented in existing eProcurement solutions and eBusiness exchange services to make them interoperable between disparate systems across Europe." Given its success, PEPPOL is now also used in other countries such as Singapore, the US, New Zealand, and Canada, among others.
- TicketBAI, the Basque Government's project for large companies, SMEs, and self-employed workers to comply with their tax obligations to the three provincial councils. One of the best examples of how electronic invoicing in Spain is also working.
In this regard, we would like to take this opportunity to inform you that you can implement the easyap solution in your business with the peace of mind that it works with both PEPPOL and TicketBAI when managing your digital invoices.
The future of mandatory electronic invoicing
Given its many benefits in terms of labor and taxation, as well as its environmental advantages, it is surprising that electronic invoicing is not yet fully mandatory. However, in Spain, the government wants to put an end to this with the Create and Grow Bill.
This law seeks to remove obstacles for newly created companies (all of which, obviously, are fully digitized) and reduce tax arrears. Thus, in a few months, it appears that mandatory electronic invoicing in Spain for commercial agreements between companies of all kinds. In turn, this draft bill establishes that electronic invoices will be signed with digital certificates.
The easyap solution offers full legal guarantees.
Not ready to tackle mandatory electronic invoicing yet? Don't worry. That's where easyap comes in. If you're one of those who has to make the leap to the digital world out of necessity, we can help you. And if you want to take the plunge to join the digital age, we can help you too.
The fact is that we have been offering our digital solution offering our digital solution to executives and financiers from various sectors and labor markets. We are the result of an alliance between professionals from the world of finance and technology experts who, since 2020, understood where the world was headed and what would be needed. That is why we launched easyap and implemented it in a multitude of different businesses.
However, now that we are bringing up the subject of mandatory electronic invoicing, we would like to take this opportunity to highlight that our service is ideal for such a situation. We comply with all legal standards and protocols. In other words, if you want to join the TicketBAI project, comply with PEPPOL in your continental or international operations, or maintain economic flows or communications related to them with the authorities, our solution will be perfect for you.
Forget about tax problems and arduous, mechanical financial procedures that belong to a bygone era, and devote your company's best resources (time and money) to other areas of the business. We take care of your digital transformation as a company, SME, or freelancer. Leave your billing processes in our hands. All you have to do is contact usvia our website or by calling us. At easyap, we're waiting for you, but the future of the business world doesn't seem to be waiting much longer.
