The role of E-Invoicing standards in France. Conference EXPP SUMMIT September 25 th

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1 The role of E-Invoicing standards in France Conference EXPP SUMMIT September 25 th

2 GS1, an original approach since 1977 Standardization organization Cooperation place Neutral and non-profit making Equally shared governance between retailers and manufacturers User-driven activities All-size, all-sector companies 111 organizations in 150 countries 1,200,000 company members in 2010 GS1 North America GS1 Latin America GS1 in Europe GS1 Middle East Africa GS1 Asia Pacific

3 What is an invoice? Generalities Commercial document. Legal document. Accounting document. Tax document: VAT. Large volumes For the five first French retail groups = 35 million invoices / year. 3

4 What is e-invoicing? Europe : former Directive 2006/112/CE 3 possible ways for e-invoicing 1. Signed files (art 233.a) «by means of an advanced electronic signature» 2. EDI (art 233.b) «by means of electronic data interchange (EDI) when the agreement relating to the exchange provides for the use of procedures guaranteeing the authenticity of the origin and integrity of the data» 3. Other ways (art 233 alinea 3) «Invoices may, however, be sent by other electronic means subject to acceptance by the Member State(s) concerned.» 4

5 1st possible way for e-invoicing : EDI GS1 standard : INVOIC (EANCOM ) The information system of company A generates the invoice The invoice is integrated into the information system of company B Translation Sender s transmission system Standard message Recipient s transmission system Translation Dematerialization Dematerialization

6 1st possible way for e-invoicing : EDI Legal principles of EDI e-invoicing 1. Checking that the invoice message contains the necessary legally required information 2. Ensuring the identity of sent and received messages 3. Maintaining a file of trading partners whom e-invoices are exchanged with 4. Producing a summary list of invoices in the correct order 5. Archiving 6. Reproducing invoices in a readable format

7 2nd possible way for e-invoicing : Signed PDF GS1 France standard Example with a free format PDF/A-1 Sending company Receiving company a PDF/A-1 is created with all the invoices data Invoice data are transmitted to the final customer with the initial PDF/A-1 Internal/solution provider s tool The PDF/A-1 is received A structured file is created in GS1 XML Document signature The PDF and the structured file are sent SIGNED Internal/solution provider s tool The signature is checked Invoice data are extracted ARCHIVING Invoices data are filed. This document can be recomposed and consulted by the administration in case of control. ARCHIVING Invoices data are filed. This document can be recomposed and consulted by the adminsitration in case of control. 7

8 2nd possible way for e-invoicing : Signed PDF Description of our PDF standard

9 How to deploy e-invoicing? French market situation for e-invoicing Retailers want to reach 100 % of received e-invoices. Big suppliers are well equipped SMEs are not GS1 France s situation 90 % of members are SMEs Need for GS1 standards to send e-invoices to all the retailers using easy and cheap solutions 9

10 Which type of EDI is best for SMEs? 1. Web EDI 1. Web EDI : EDI transmission system out-sourced with a solution provider Entering invoice data manually on the provider s web portal INTERNET Invoice data transmission to the provider The company that sends invoices PROVIDER Creating an EDI message EDI Sending INVOIC message to the transmission system of the recipient company CHARACTERISTICS EDI transmission system is outsourced. Company s transmission system is non-communicating. BENEFITS «Light» system, external and outsourced tools. Convenient for a limited volume of e-invoices. Easy to set up on SMEs information systems (computers ) 10

11 Which type of EDI is best for SMEs? 2. Hosted EDI ( Saas) CHARACTERISTICS System of transmission of EDI messages is outsourced. Information system of the company communicating. BENEFITS Communicating solution without redesigning the IS (subcontracting system), moderate investments. Suitable for low or middle volumes of invoices (<1,000 invoices per year). 11

12 Helping SMEs see clear on the solutions market GS1 France qualifications WHY TWO QUALIFICATIONS FOR E-INVOICING SOLUTIONS? Strong demand from SMEs in response to: any control of the tax authorities for their e-invoices Interoperability issue with all their retail customers Many solutions on the market : which one to choose?? GS1 France approach: 2 qualifications 1. For solutions compliant with EDI standard 2. For solutions compliant with Signed PDF standard

13 Communicating 13

14 and meeting our member SMEs with the qualified solutions providers Paris 100 people Montpellier 70 people Paris- La Défense 70 people Bordeaux 70 people Mont de Marsan 50 people 14

15 E-invoicing on the French market Deployment : 3-year evolution TARGET : retailers who receive e-invoices compliant with French tax laws Number of received e-invoices Percentage of e- invoices in comparison with the total number of received invoices (paper, s,..) 7. 3 millions 9.9 millions 11 millions + 35 % + 12% 36,5 % 52 % 55 % 15

16 E-invoicing on the French market Results in 2011 TARGET : retailers who receive e-invoices compliant with French tax laws (in millions of invoices) EDI without EDI with paper paper «289 bis» Signed files (signed PDF) «289 V» TOTAL without paper EDI with paper % in 1 year 65 % of invoices through electronic ways. 16

17 Keys for e-invoices deployment STRENGTHS WEAKNESSES VAST CHOICE OF SOLUTIONS QUICK ROI EXISTING PROCESS TECHNICAL HURDLES LEGAL HURDLES INITIAL INVESTMENTS OPPORTUNITIES THREATS RETAILERS MANDATE DEMATERIALIZATION TRENDS NEEDS FOR DATA QUALITY UNSTABLE LAWS / DIRECTIVES CROSS-BORDERS EXCHANGES 17

18 Thank you for your attention! Danke für die Aufmerksamkeit!

19 Contacts Alexandre Rieucau Emilie Sion T +33 (0) W &

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