What dynamics are to be expected during implementation? Will the multitude of international e-invoicing "standards" remain? PEPPOL et al.

1. Global E-Invoicing
Andreas Killinger I SEEBURGER AG

2. © SEEBURGER AG 2019 2
1. New opportunities and mandates
2. What dynamics are to be expected during
implementation?
3. Increasing importance of PEPPOL
4. Summary of the

3. © SEEBURGER AG 2017 3© SEEBURGER AG 2019 3
1 New opportunities and mandates

4. © SEEBURGER AG 2019 4
What are the Main Drivers of E-Invoicing and E-VAT Reporting?
Mandates, Business Requirements and Cost Savings
Invoice Issuer Invoice Receiver
Tax Authorities
b)b)
a)
c)c)
Business to Government (B2G):
Europe enforces E-Invoicing when
selling to Government Organisations
National Regulations (Clearance):
Governments enforce rules which apply to
E-Invoicing between any companies (VAT fraud)
Cost Savings:
Companies introduce
E-Invoicing to save costs
a) b) c)
AEAT
XML
FACe
XML

5. © SEEBURGER AG 2019 5
Deadline 18 April 2019 According to Directive EN 2014/55/EU
Suppliers Can Issue B2G Invoices Electronically Throughout Europe
Since 18 April 2019, public contracting authorities must be able to receive and process electronic Invoices in
accordance with the EN.
22 EU countries (79%) have already implemented a B2G e-invoicing solution, offer E-Invoicing to
suppliers or require a B2G E-Invoicing solution already.
https://ec.europa.eu/cefdigital/wiki/display/CEFDIGITAL/Uptake+-+view+eInvoicing+-+Implementation+of+B2G+eInvoicing (August 20th 2019)
No Information
In progress
Ready

6. © SEEBURGER AG 2019 6
Why is E-Invoicing and E-VAT Reporting Becoming More Important?
147,1 Billion EUR VAT Gap or 12.3 % in 2016
Source: VAT Gap Report 2018 of the European Commission
22 Billion EUR
36 Billion EUR
VAT Gap as a percent of the VAT total
tax liability in EU, 2016 and 2015

7. © SEEBURGER AG 2019 7
Why is E-Invoicing Worthwhile – Even Without Mandates?
Savings of Several Euros (€) per Invoice in a Short Period of Time
+ 6,60 € + 11,20 €
60-80 %
cost savings
through E-Invoicing
Supplier Buyer
Source: Bruno Koch (Billentis), Business Case E-Invoicing / E-Billing, February 10, 2017

8. © SEEBURGER AG 2019 8
Short Term Outlook for Invoice Issuers in 2019 and 2020 (Extract)
New Mandates New Possibilities
B2T
Business to Tax
B2B
Business to Business
B2G
Business to Government
B2C
Business to Consumer
 01.01.2019 Canary Islands
 01.04.2019 & 01.10.2019 UK
 01.01.2020 Norway
 01.01.2019 Italy
 01.01.2019 Columbia
 01.01.2019 & 2020 France
 01.04.2019 Sweden
 02.04.2019 Norway
 18.04.2020 Portugal
 01.11.2020 Poland
 01.01.2019 Italy
 01.04.2019 Poland
 18.04.2019 Ireland
 18.04.2019 The Netherlands
 18.04.2019 Portugal
 01.07.2019 Croatia
 ….
 01.01.2019 Lithuania
 01.08.2019 Panama

9. © SEEBURGER AG 2019 9
E-Invoicing Roadmap for Global Companies
Mandates and opportunities in 2019 and 2020
18.04.2019
Netherlands (B2G)
Portugal (B2G)
Greece (B2G)
Poland (B2G)
Ireland (B2G)
Greece (Inv. Rep.)
Norway (SAF-T)
Poland (SAF-T)
France (B2G)
Hungary (SAF-T)
01.01.2020
B2B: Business-to-Business
B2C: Business-to-Consumer
B2G: Business-to-Government
B2T: Business-to-Tax
2019
2020
01.04.2019
UK (B2T)
Sweden (B2G)
Norway (B2G)
01.01.2019
Greece (Inv. Rep.)
Italy (B2C, B2B, B2G)
Lithuania (SAF-T)
France (B2G)
Ireland (B2G)
Colombia (B2B)
Panama (B2B)
Canary Islands (B2T)
04.06.2019
Hungary v1.1 (B2T)
01.07.2019
Croatia(B2G)
Estonia (B2G)
01.10.2019
Spain (B2T) v1.1
01.04.2020
UK (B2T)
Hungary v2.0 (B2T)
01.08.2019
Portugal (B2G)
Greece (B2G)
Poland (B2G)
Ireland (B2G)
Kuwait (B2T)
01.04.2021
2021

10. © SEEBURGER AG 2017 10© SEEBURGER AG 2019 10
2 What dynamics are involved in
the Implementation?

11. © SEEBURGER AG 2019 11
What dynamics are to be expected during implementation?
Paper
Forms
Web Forms
UK MTD
Poland SAF-T
Spain SII
Hungary
Mexico, Brazil, Italy,
Turkey, Korea
Chile
Optional 'Post
Audit' E-Invoicing clearance
E-Invoicing and
e-assessment
Residual Report
(Digital)
Digital file transfer required Electronic invoice required
Continuous transaction controls
Traditional
transference
paradigm shift
Digital tax reporting
Transformatives
E-Invoicing Conformity
Effects on the digital
ecosystem
ERP effects
Tax litigation
and resource impacts
Financial
Effects on the systems
Effectsonbusinessprocesses
Operative

12. © SEEBURGER AG 2019 12
“Out of 34 million invoices, 16 million have gone wrong during the first 5 months”
What is the Historical Development of VAT Reporting
in Hungary?
B2T
Announcement
for VAT
Reporting in
2018
B2T
Postponed one
more month
B2T
GOLIVE
B2T
Announcement of
extensive version
changes in
2019/2020
B2T
Planned
GOLIVE
(Version 1.1)
07
2017
07
2018
08
2018
12
2018
04
2019
06
2019
01/04
2020
B2T
GOLIVE
Version 1.1
postponed
B2T
GOLIVE
Version 2.0

13. © SEEBURGER AG 2019 13
How has VAT Reporting developed in Spain?
Already the third change since 01.01.2018
SII - has published the specification of validations and errors. Changes have been effective since 1 October 2019.
Relevant messages for reporting to the SII system
1. issued invoices
2. Received Invoices
3. investment goods
4. Intra-Community Transactions
5. Issued Collections
6. Tax Related Operations
7. received payments
8. Additional Properties (new in version 1.1 as of 01.10.2018)
9. Additional Properties (Update to version 1.1 valid since 01.10.2019)
Version 1.1 as of 01.01.2018

14. © SEEBURGER AG 2017 14© SEEBURGER AG 2019 14
3 Increasing Importance of PEPPOL

15. © SEEBURGER AG 2019 15
What is the Concept of PEPPOL?
4 Corner Model for Secure Exchange Between Many Partners
How does PEPPOL work?
 Different message types (e.g. orders and
invoices) are exchanged via open standards
What are the rules for
interoperability?
 PEPPOL format
"Universal Business Language"
 Communication via the PEPPOL eDelivery
network

16. © SEEBURGER AG 2019 16
 29 European countries are now
accessible via PEPPOL
 Outside Europe Singapore and New Zealand, are
joining
 13 PEPPOL Authorities in 13 countries manage this
network.
 Access points are currently being certified in
other countries:
Lithuania, Malaysia, Mexico, Romania, the Slovak
Republic and Australia *.
PEPPOL Distribution
Source: André Hoddevik, Exchange Summit Vienna 2019

17. © SEEBURGER AG 2019 17
Who Might Use PEPPOL E-Invoicing Services?
B2G-Supplier B2B-Supplier
Voluntary for suppliers
(depending on their customers)
Motivation:
1) Customer relationships
2) Cost savings
Who?
Why? Mandatory for suppliers in certain
countries like
Sweden, Croatia, …
Voluntary in other EU countries
Motivation:
Cost savings
€
€
PEPPOL Directory: https://directory.peppol.eu/public

18. © SEEBURGER AG 2019 18
How Can Suppliers Use PEPPOL Best?
B2G / B2B in Europe Compliant to EN 16931 and More!
Integrated Process
SEEBURGER B2B
EDI & E-Invoicing
Extension
UBL
invoice
data
Conversion Communication
UBL
Invoice
Issuer
ERP system
e.g. SAP, Navision
...
SEEBURGER
PEPPOL
AccessPoint
Validation
Receiver 1
Receiver…
Receiver 2
Receiver PEPPOL
AccessPoint (NL)
Receiver 1
Receiver…
Receiver 2
Receiver PEPPOL
AccessPoint (SE)
Receiver 1,...
Receiver 1,...
Receiver 1,...
+150.000
Receivers,
+230 PEPPOL
AccessPoints,
+348 Providers Receiver 1,...
Receiver 1,...TrustWeaver
Archiving
MDN

19. © SEEBURGER AG 2017 19© SEEBURGER AG 2019 19
4 Summary of the

20. © SEEBURGER AG 2019 20
Summary
The trend towards digitization of invoices is
unstoppable – the question is not if, but the
next mandates will follow.
Clearance systems will gradually displace
post-audit systems.
Every country requires different standards
which is causing complexity.
Frequent changes of processes and formats
are the rule and not the exception.
E-Invoicing and E-VAT Reporting require
flexible solutions, which also cover future
requirements.
BIS
IoT/Ind. 4.0
ERP/SAP
MFT
B2B/EDI
API/EAI
E-Invoicing

21. © SEEBURGER AG 2019 21
SEEBURGER Global E-Invoicing Service in the Cloud
Global E-Invoicing Service
Your Personnel
Your
ERP system
Your Company
monitoring
invoice
International Tax Authorities
invoice
invoice
International
business
partners
€
€
ERP

22. Soon coming E-Invoicing Services
in
• Brazil
AU HU
Available E-Invoicing Services
Further services available in
countries not displayed on the
map
• Mexico
DE PL
DK
NO
SE
FI
HR
IT
UK
ES
FR
NL
CH
BE

23. © SEEBURGER AG 2019 23
Experience in E-Invoicing & e-VAT reporting
 + 150 projects in electronic VAT reporting
to tax agencies e.g. in Spain, Hungary,
Italy, Mexico
 Provide solutions for many countries
All-in-one single E-Invoicing platform
Full loop of documents & SAP integrationEasy, ERP independent
 Any ERP system or even heterogenious
system landscapes can be connected to
SEEBURGER solutions easily
 No big SAP implementation required
 Process electronical orders, delivery
documents, invoices, VAT returns, etc.
 Offer SAP extensions for business users
and best process integration
 Fulfills requirements and obligations with
combinable standard modules
 Is highly flexible, adaptable and scalable
 Runs on-premises, in the cloud or hybrid
SEEBURGER Global E-Invoicing at a Glance

24. © SEEBURGER AG 2019 24
Thank you very much
Questions or remarks?
We are here for you!
www.seeburger.com

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