Progress, development, innovation, cutting edge, future... These are all adjectives that we can associate with this fascinating process we call digital transformation. A process that impacts all areas of society. However, digitization also poses challenges and difficulties every day. In light of this, technical tools and concepts are emerging that take time to assimilate and master. One of these is discussed in this article: What is UBL? Why has it become so important in recent times? And, as far as easyap is concerned, what is its relationship and importance in electronic invoicing? We clarify this by answering the most frequently asked questions.
What is UBL?
As is often the case when discussing technology, Anglicisms are both global and frequently used terms. At the same time, it is also very common to encounter acronyms. And when it comes to defining what UBL is , we encounter both. So UBL is the acronym for Universal Business Language.
However, we are more interested in establishing what UBL is at a technical level. In this sense, we are talking about a standard that has been created and developed for the exchange of electronic documents. Specifically, UBL is used for invoices, delivery notes, orders, etc., in electronic format and between different systems and organizations.
It is designed for digital industries, that is, for anyone who wants to have a future and survive. Its use is becoming increasingly common and, in many cases, mandatory. Especially when it comes to B2G (Business to Governments), since a large number of countries only allow electronic invoicing in any transaction with the Public Administration.
Returning once again to the more technical aspects of UBL, the UBL format is based on the extensible markup language. This new Anglicism is what we more commonly know as XML. It helps to automate and simplify business processes. For this reason, UBL has been implemented in several countries and is currently considered the international standard for electronic invoicing.
When was it created and for what purpose?
To fully understand what UBL is today, you need to know how it was created, in what context, and who promoted it. It was created at the end of 2002, although its first version was launched in 2003. Since then, like any system, protocol, standard, or digital tool, UBL has been updated and optimized according to the needs of the market and businesses. Its latest version is 2.3.
As for who created it and for what purpose, the UBL language was developed by the well-known organization OASIS (Organization for the Advancement of Structured Information Standards). Specifically, it was the result of a collaborative effort by several organizations. The project was led by OASIS, and the goal they set was to standardize the secure exchange of digital business documents in the business world.
Who currently manages UBL?
As we mentioned, UBL was developed by OASIS. This organization, created in 1993 with members from all over the world, is a global non-profit consortium. Its team includes companies, governments, and other non-profit associations with which it works to create and promote open standards for information technology.
Currently, OASIS continues to manage and carry out all UBL maintenance. However, the success of the UBL format in the field of electronic invoicing has led many governments to make it mandatory and to participate in the development of the standard.
How does Universal Business Language work?
If we delve into the more technical aspects of UBL, we have already made progress that it is an XML language. In other words, a markup language. For those who do not have in-depth knowledge of technology, a markup language allows certain information and data to be structured and described so that it can be recognized by software. Likewise, UBL is used to create documents in formats that can be read by computers and other devices.
In turn, using UBL is so simple that it only consists of two easy steps:
- You create a UBL document using XML format. This document records the commercial information of a transaction. In other words, the mandatory information and the data that must be included in an invoice.
- Once the document has been created , you can send it to other software via a private network using secure protocols. In addition, given the advances in current software and systems, the recipient can automatically process the document, store it, and manage it conveniently.
UBL documents are easily readable and processable UBL documents are easily readable and processable, but to do so you need software that accepts and uses this type of format. Numerous authorities and experts agree that using such a system allows companies to automate processes and reduce human error.
What advantages does UBL offer for electronic invoicing?
Automation automation is the main benefit that many people highlight. However, using the UBL format has many other advantages for companies (both public and private) that we should discuss. Specifically, at easyap, we will highlight the ones listed below.
Automate your business processes
With UBL, you can automate and simplify numerous business processes. Thanks to this language, you can issue, receive, and manage various commercial documents that affect your accounting. Not only that, but you can do so quickly and in a standardized and secure manner in terms of data and information protection.
Improve efficiency
Through XML languages such as UBL you reduce human error and processing times. This benefit is inherent to the use of technology, which eliminates the task of manually entering documents into the system and saves time. Likewise, you can invest that time and human resources in other functions.
You reduce financial costs
In line with the previous point, with UBL and electronic invoicing you reduce the costs associated with document management and information exchange. For example, your investment in storage space, materials, and, above all, human resources will be much lower than in the past.
You comply with electronic invoicing requirements.
The UBL language has been implemented in several countries, and the use of electronic invoices is mandatory by law throughout the EU and in some other parts of the world. It is already considered an international standard for electronic invoicing, so by using it through certified software, you will be complying with the regulations established by the authorities.
Help in combating tax evasion
With the digitization of billing processes, governments in different countries and regions can more efficiently manage everything related to taxation and business accounting . With formats such as UBL or FacturaE (in Spain), authorities can better control the operations carried out by companies and combat crimes such as tax evasion much more effectively.
You contribute to sustainability
Another reason why UBL has been chosen UBL is its sustainable nature. As everything is digital and in electronic format, the consumption of materials such as paper is significantly reduced. This means that the environmental impact that companies have on the planet and its natural resources is much lower.
In which countries is the UBL format being used?
Governments have been promoting these formats for years precisely to take advantage of all the benefits offered by UBL in particular and online invoicing in general. There are now numerous regulations and laws in countries around the world that make it mandatory.
Some examples of countries or regions where UBL has been implemented or is being implemented are:
– Europe. Although electronic invoicing is mandatory in most countries, they have implemented different formats: FatturaPa in Italy, Facturae (another XML format) in Spain, PEPPOL-BIS in Belgium, and ESIDIS in Greece. However, Portugal and Sweden do use UBL, and since 2019, the EU has considered it the standard format for transactions with any public administration in its member states. Here we tell you about the latest developments in electronic invoicing in Europe.
– Japan. In Japan, a leader in cutting-edge technology, UBL is also being used for the exchange of commercial documents between companies.
– Latin America. Countries such as Mexico, Chile, Colombia, and Brazil, among others, have already promoted laws and other types of proposals to establish the UBL standard for electronic invoicing.
We must remember that, although UBL is already a reality in much of the world, there is still a long way to go. Many of these standards are still exclusively applicable to B2G, so a large number of private companies do not implement them in their B2B or B2C operations.
However, current and future legislation is moving in the same direction: to establish the mandatory use of UBL and digital invoicing in any commercial setting.
For all these reasons, and by way of conclusion, we ask you the following question: why not get ahead of the game and start your digital transformation now? At easyap, we will be delighted to help you with this. By implementing our software, you can digitize all your business invoicing, comply with the relevant legislation, and take advantage of the countless advantages of being a digital business.
