With a new year comes new compliance standards and additions to regulatory trending terms such as PEPPOL. Update yourself with the information you need to ensure your organization is prepared for changes that may affect how you do business.
PEPPOL Updates for 2019
After being introduced in September 2012, PEPPOL (Pan-European Public Procurement On-Line) has aimed to create a standardized network connection for electronic sending and receiving of invoices. PEPPOL is not an e-procurement system itself, but it provides the technical specifications for existing e-procurement solutions to encourage interoperability across Europe and now, across the globe. Singapore has now adopted PEPPOL, so it is no longer a “Europe-only” mandate. At its core, PEPPOL:
Aims to have as many end users as possible utilizing electronic procurement
Urges service providers to build and offer services based on PEPPOL standards, and
Ensures that the PEPPOL network continues to grow.
Effective as of: November 2019
What it means: Directive 2014/55/EU states that all public, European administrations must have the capabilities in place to accept electronic invoices from their suppliers. Some countries have created their own standards in regard to a centralized receipt of invoices while others are joining the PEPPOL network to comply with the changes.
Effective as of: January 2019
What it means: The new standard of EHF Invoice and Credit Note 3.0 will be mandatory in e-invoicing in B2G. The standard is built upon PEPPOL BIS with the goal to implement EU Directive 2014/55/EU in Norway.
Effective as of: April 2019
What it means: The Polish government will have a centralized e-invoicing platform available to Poland by April 2019. Using PEPPOL Access Points, all invoices sent to public administrations will be required to be sent electronically.
Effective as of: April 2019
What it means: Starting in April of 2019, all Swedish public administrations are required to be registered with PEPPOL and must receive their invoices electronically or in the national Svefaktura format.
What’s in Store for the US?
As for e-invoicing mandates in the US, though there isn’t a schedule set quite yet for required electronic adoption, as more countries implement mandatory e-invoicing, the likelihood of it making its way into the US market increases. The right topics are in discussion and the benefits of e-invoicing highly outweigh the cons—and while it is highly unlikely that the US will institute a B2B e-invoice mandate, the US market is realizing that it can benefit from the digitization of Europe.
One way the US is addressing these changes is through The Business Payments Coalition’s work, which is based on PEPPOL foundations. The Business Payments Coalition (BPC) is working to release a GAP analysis of PEPPOL and US needs by mid-2019. By leveraging this work, the BPC aims to have proof of concept for a 4-corner US e-Invoice Interoperability model launched in 2020. Through PEPPOL, a US buyer could have access to suppliers on over 200 networks across Europe and Singapore.
What’s in Store for the UK?
There is currently no central platform for e-invoicing UK-wide. The UK is working towards transposing and implementing the European Standard on e-Invoicing into UK national law before the deadline on April 18.
Making Tax Digital is a key part of the HMRC’s—the department responsible for the administration and collection of taxes—plans to make it easier to correctly pay tax. As of April 1, 2019, VAT-registered businesses with a turnover above the current VAT threshold of £85,000 are required to use the making Tax Digital service to submit VAT returns. They will also be required to keep their records digitally in the system and submit all VAT returns starting April 1.
How can Basware help?
If you’re doing global business and want to ensure your company is compliant with upcoming or potential e-invoicing requirements, we’re here to help. Basware is a global leader in purchase to pay with a variety of e-invoicing functionalities available. We also work closely with our global partners to keep up-to-date with the developments regarding regulations to make sure our customers remain compliant with e-invoicing processes worldwide.
To learn more, check out PayStream Advisors’ Global AP Automation report to learn more about enuring global compliance with e-invoicing.