This week, the government of Spain issued eInvoicing requirements for the public sector. This mandatory automation will cover ‘business to government’ (B2G) invoicing processes, and is set to be in effect by January of 2015.
This mandate is only the most recent in a series of transitions made by other governments in Europe. In Italy earlier this month, B2G eInvoicing adoption was also made mandatory, with full implementation expected to be complete by March of 2015. Estonia is reportedly looking into the complete transition as well, and the UK’s National Health Service recently contracted the solutions provider, Tradeshift, to fully automate their Shared Business Services operation.
The EU’s interest in automation has increased in recent years, and they have demonstrated this by extensive research into the subject. Earlier this year, parliament launched a UK Government Inquiry Report into eInvoicing to explore the benefits and barriers of implementation. In addition, the Euro Banking Association (EBA) recently published a Supply Chain Finance (SCF) Market Guide, showing the results of their research and analysis work on SCF and alternative electronic payments.
The influence of Latin American eInvoicing regulations has had some effect on EU views. Many countries in the region, such as Brazil and Mexico, have been operating under fully mandated automated invoicing for years, and while the systems in place are complicated and tend to be error-prone, they are ultimately more sustainable and efficient with VAT laws; both countries have been able to significantly cut blackmarket transfers and tax dodgers while increasing internal revenue.
Much of Europe shares those same tax regulations—a large reason interest in eInvoicing is growing. In the US, Federal involvement in eInvoicing mandating is highly unlikely, so it may be up to research firms like PayStream Advisors to continue spreading the word and lighting the fire for the eInvoicing revolution.