1. E-Invoicing in Russia:
Ready for take off
Grigoriy Povarov
Business Development Director
SKB Kontur, Russia
6th European EXPP Summit, October 11-12, 2010, Munich

2. What is Russia?
= ×48
Area: 17 million sq. km (4 x EU)
GDP: $1.255 trillion (10% of EU)
Population: 140 million (30% of EU)
Business class: 2 million (10% of EU)
Internet users: 65%
Time zones: 11 (!)
Sources: CIA The World Factbook, TNS Global

3. Document & Invoicing landscape
Bill Delivery Invoice
Contract
(payment) note / etc (VAT)
• 15 billion inv. annually (30 billion in EU)
• 60% biz produce 1000+ inv., 20% biz produce 10000+ inv. annually
• Documents with signatures & stamps (MUST)
• 5 years storing (MUST)
• 99,99% in PAPER
Sources: PCWeek/Russian Edition, Russian Federal Tax Office

4. VAT-invoicing details
Gov.
invoice
biz biz
• Unified printable form, strict rules for content
• Gov’s inspection at any time (1 time for 3 years guarantee)
• Strong penalty for violations (18% of invoice amount + fees)

5. Main way for invoice exchange? Russian Post!
42 000 offices all over Russia
€3 for one mail
BUT!
Next door: 4-7 days
In city: 10-23 days
Between cities: 5-40 days
Sources: Russian Post, «Komsomolskaya Pravda» newspaper

6. E-Invoicing in Russia: Pro & Contra
• Huge distances and bad offline communications
• High risks of penalties
• Long-time document storing
• Active role of Russian Gov
• Automation is not a fetish (average salary — €300/month)
• Cost reduction ideas are not very popular — too many oil
and gas :-(

7. What about E-Invoicing?
Yesterday
• biz-doc inagreement with yoursigned
(if you have
paper or digital
partner)
• Invoice only in paper for Gov)
(if you want to be VAT-OK
Today (formally from 2 Sep 2010, really from 1 Jan 2011)
• Invoice in paper or digital signed
(under Gov’s rules)

8. roaming
fixed XML format
Service provider Service provider
time stamping
certified by Gov
signature verification
digital signature
Supplier Buyer

9. With or without
signature? PDF? EDI? XML?
There are no such
questions in Russia!
Service providers of direct
communication? Do we need
unified format?

10. Russian digital signature issues
• Own criptography standart (no RSA, no AES,
ГОСТ!)
• Strong sertification of cryptograpy software
by Federal Security Service (ex-KGB)
• Cryptography software export is banned
• Obligatory licensing for Certificate Authorities
& Service Providers with digital signature (e.g.
E-Invoicing SPs)

11. B2G-service providers
• Every (!) middle/large biz has its own digital signature
• 54% of taxpayers use electronic tax declaration
• 100+ B2G-service providers
• 50+ digital signature certificate authorities
Tensor Taxcom
400 000 200 000
taxpayers
SKB Kontur
850 000 46% are still offline
Kaluga-Astral
237 000
Sources: Forbes Russia, Russian Federal Tax Office

12. Looking for cooperation?
Welcome to EXPP Operators Forum:
October 13, 14:00, Breakout Session D
«Search and find appropriate interconnection partners»
— Real-life Russian Service Provider
will speak about its business & cooperation

13. and much more...

14. Action! No waiting!
• Your Company’s Global IT vs. Local reqs. — big issue
• Deep pilot project for Russian E-Invoicing of ECR-Rus with
Metro Cash & Carry, Kraft Foods and SKB Kontur
• Results presented at 6th Annual ECR Forum and sent to Gov
• http://slidesha.re/aoDKxX (Metro Cash & Carry)
• http://slidesha.re/c4MYWW (SKB Kontur)
• http://slidesha.re/cBXfSv (Kraft Foods)

15. E-Invoicing in Russia: perspectives
Legislation is OK
Plenty of international
2M Biz companies
High internet & digital
signature penetration
A lot of service Uniform rules
providers
Gov active role

16. E-Invoicing in Russia: perspectives
850 000 taxpayers @ SKB Kontur
Last years electronic B2G ex-
ponential growth — Biz are
ready for innovations.
2004 2005 2006 2007 2008 2009
«Russia has all the ingridients to penetrate to market of
electronic document flow much faster than the Europe is
doing» (Bruno Koch)

17. Questions & Answers

18. Thank you!
Grigoriy Povarov
Business Development Director
SKB Kontur, Russia
gp@skbkontur.ru
twitter.com/gpovarov