1. Task 1. EDI and Business
Standards
Mounir El-Khoury
MKEnterprise
eInvoicing WS Public Event, Brussels 11 April 2006
2. Task 1. EDI and Business Standards
Task 1.1 European model EDI Agreement
Task 1.2 Invoice Core Components
Task 1.3 Party and Product identifiers
Task 1.4 Standard Codes for clauses
included in invoices
Task 1.5 Survey on Invoice Data Content
eInvoicing WS Public Event, Brussels 11 April 2006
3. Task 1.1 European model
EDI Agreement
VAT Directive 2001/115/EC references Commission
Recommendation (CR) 1994/820/EC for EDI Definition
EDI in CR 1994/820/EC is restrictive, limited to UN/EDIFACT
and needed to be brought up to date
Old definition of EDI here below and text of CR 1994/820/EC
have been revised, See Task 1.1.
‘Electronic data interchange is the electronic transfer, from
computer to computer, of commercial and administrative data
using an agreed standard to structure an EDI message’.
eInvoicing WS Public Event, Brussels 11 April 2006
4. Task 1.1 European model
EDI Agreement
2.2. EDI: (Proposed definition is open)
Electronic data interchange is the transfer of commercial,
administrative and business information between computer
systems, using data formats which have been mutually
agreed by the parties.
Proposed revision and update of document CR 1994/820/EC
has been submitted to DG Enterprise, Taxud, Information
Society and Open Review
No negative comments received
Approved by CEN Workshop
eInvoicing WS Public Event, Brussels 11 April 2006
5. Task 1.1 European model
EDI Agreement
Importance of this revision:
To open CR 1994/820/EC and not limit it to UN/EDIFACT
standards or other standards because new developments are in
XML:
UN/CEFACT
e-public procurement, e-Government, ..
GS1, RosettaNet, Eurofer, …
In VAT Directive, EDI users may not be required by Member
States to use AES or QES for eInvoicing if they meet
requirements of authenticity and integrity
eInvoicing WS Public Event, Brussels 11 April 2006
6. Task 1.2 Invoice Core
Components
Task 1.2 :
To submit the invoice data content details identified in
the VAT Directive for the creation of the relevant
UN/CEFACT Core Components
Work progressing according to UN/CEFACT:
Core Components Technical Specification
Submission rules and procedures (Lengthy)
TBG17 Harmonisation with other submissions
7. Task 1.2 Invoice Core
Components
UN/CEFACT eInvoice BRS (Business Requirements
Specification) and RSM (Requirements Specification
Mapping) already approved by UN/CEFACT
Available on UN/CEFACT TBG1 Supply Chain and
Procurement Website
http://webster.disa.org/cefact-groups/tbg/wg/tbg1_main.cfm
Core Components of the invoice will be available by
May 2006
UN/CEFACT ebXML schema of the Cross industry
invoice will be published in October 2006
eInvoicing WS Public Event, Brussels 11 April 2006
8. Task1.3 Party and Product
identifiers
VAT Directive requires Invoices to have:
Name and address of parties
Description of product or service
But most present day eBusiness communities
are using coded identifiers for Parties and
Products; (automotive, retail and distribution,
electronics, chemical …)
Descriptive identifiers do not fulfil role of
identifiers in eBusiness transactions
eInvoicing WS Public Event, Brussels 11 April 2006
9. Task1.3 Party and Product
identifiers
Proposed amendment to VAT directive 2001/115/EC
to permit coded identifiers:
The full name and address and / or a unique
coded identification of the taxable person; where
necessary the taxable person’s tax representative;
and of his customer;
The quantity and nature, as a coded identifier
and / or description, of the goods supplied or the
extent and nature, as a coded identifier and / or
description, of the services rendered;
eInvoicing WS Public Event, Brussels 11 April 2006
10. Task1.3 Party and Product
identifiers
From Survey of Member States (Task 1.5)
Member States requiring textual identifiers for name and address
be, cy, ee, el, fr, hu, it, li, mt, pt, si, sk, ch
Member States permitting coded identifiers instead of name and
address (Look up tables to be made available to convert code to
text)
at, cz, dk, fi, nl, se, uk
Member States permitting coded identifiers for Products and
Services (Look up tables to be made available to convert code to
text)
at, be, dk, cz, fi, mt, nl, si, se, uk, ch
eInvoicing WS Public Event, Brussels 11 April 2006
11. Task1.3 Party and Product
identifiers
Using text identifiers is not satisfactory
in eBusiness
Look up tables provides full details of Party, product or
service
Coded identifiers permit details to be picked up in different
languages in cross border trade
eInvoicing WS Public Event, Brussels 11 April 2006
12. Task1.3 Party and Product
identifiers
Examples of party identifiers:
Issued by public authorities, e.g. SIRET,
SIREN, VAT administrations, ..
Issued by international organizations, e.g. GS1
Global Location Number (GLN), D&B Dun’s
number, IATA, …
Mutually agreed Identifiers by the trading
partners, e.g. Seller’s party identifier, buyer’s
party identifier,
eInvoicing WS Public Event, Brussels 11 April 2006
13. Task1.3 Party and Product
identifiers
Example of Product and service identifiers:
Identifiers issued by international organizations
GSI - GTIN Global Trade Item Number (GS1)
Digital Object Identifiers
IATA
FIATA
Identifiers issued by public authorities
National Health Service, National Drug Code,
Identifiers mutually agreed by trading partners
eInvoicing WS Public Event, Brussels 11 April 2006
14. Task1.3 Party and Product
identifiers
Requirement by authorities:
Parties to maintain ‘Look Up tables’ to provide the clear
text equivalence using the identifiers for the period of
storage of the electronic invoices (5-10 years) :
Name and address of parties
Description of product or service
eInvoicing WS Public Event, Brussels 11 April 2006
15. Task1.4 Standard Codes for
clauses included in invoices
Text clauses inserted in Electronic Invoices for VAT exemptions,
Reverse charges, Margin scheme supplies, Intra-community
supply of New Means of Transport, etc. create problems;
Not electronically processable, contrary to objectives of
the Directive 2001/115/EC for electronic invoicing
Absence of an agreed pan-European convention
creates artificial barriers for cross-border trade
Reference to national legislation in cross border
invoicing has no meaning in another EU Member State.
Problems in cross border ‘Self Billing’ where customer
may not know exemptions relevant to his supplier
…
eInvoicing WS Public Event, Brussels 11 April 2006
16. Task1.4 Standard Codes for
clauses included in invoices
CEN Workshop Recommendation:
To develop codes to replace plain text clauses to meet the
needs of the Invoicing Directive, with regard to “indications” of:
Supplies that are Exempt from VAT
Supplies that are subject to the Reverse Charge
procedure
Supplies that are subject to Margin Schemes
Intra-Community supplies of New Means of Transport
(motor cars)
eInvoicing WS Public Event, Brussels 11 April 2006
17. Task1.4 Standard Codes for clauses
included in invoices
From survey of member states (Task 1.5), response was very
positive to develop a standard code set based on ODETTE’s work;
19 Member States approve proposal for coded representation
Portugal still needs to address point
Ireland, Coded text not acceptable at present
4 Member States still to respond
Several member states request simplification and limiting the
number of clauses
eInvoicing WS Public Event, Brussels 11 April 2006
18. Task1.4 Standard Codes for
clauses included in invoices
Code : AAC Exempt – Article 28c(A) of Directive
77/388/EC
Meaning: Exempt Intra-Community supplies of
goods.
Explanation: To be used when invoicing goods
which are delivered from one EC
country to another EC country if the
customer has a VAT number in another
EC country.
eInvoicing WS Public Event, Brussels 11 April 2006
19. Task1.4 Standard Codes for
clauses included in invoices
Next Steps:
a) Get formal approval of the code list from interested parties
User groups
Member states VAT administration
EU Taxud
b) Submit approved code list for official translation into Member
State languages
c) Prepare explanatory documentation to support the
dissemination of the code list
d) Request CEN to take responsibility for maintenance in
UN/CEFACT
eInvoicing WS Public Event, Brussels 11 April 2006
20. Task1.5 Survey on Invoice
Data Content
Survey sent to EU Member States and EFTA to obtain information
On:
Storage of electronic invoices (dealt later by H. Salmi)
Update 2003 survey of data content usage
Proposal to introduce codes to replace plain text clauses,
already dealt with in Task 1.4
Summary of Survey available in Task 1.5 handout in Section 5,
but MS Responses available in electronic version of report
Response received from 21 Member States and Switzerland
eInvoicing WS Public Event, Brussels 11 April 2006
21. Task1.5 Response to Survey
Invoice Data Content & Storage
nl Netherlands
at Austria
pt Portugal
be Belgium
si Slovenia
cy Cyprus
sk Slovakia
cz Czech Rep.
se Sweden
dk Denmark
uk United King.
ee Estonia
ch Switzerland
fi Finland
fr France
el Greece
hu Hungary
Responses still come
ie Ireland
de Germany
it Italy
lu Luxembourg
li Lithuania
lv Latvia sp Spain
mt Malta pl Poland*
*Unofficial response
eInvoicing WS Public Event, Brussels 11 April 2006
22. Task1.5 Survey on Invoice
Data Content
Summary of issues on data content available in Task 1.5
Section 5
Date of invoice:
Recommendation: Include date format in electronic invoices using
international code set
Sequential invoice number:
Remark: Some countries only require a unique invoice number.
Guidelines provided to form unique sequential number
VAT number (Seller and Buyer)
Some MS may not require them for certain transaction
Some MS only require use of Country Code for intra-community
trade
Some MS have VAT numbers that differ from agreed form
eInvoicing WS Public Event, Brussels 11 April 2006
23. Task1.5 Survey on Invoice
Data Content
Party’s full Name and address
See task 1.3
Product or service description
See task 1.3
Date of supply or payment
Some differences between members states
Break-down of the Taxable amount per VAT rate or
exemption
Some differences between member states
Quantity or extent
Recommend use of Unit of Measure in electronic invoices
eInvoicing WS Public Event, Brussels 11 April 2006
24. Task1.5 Survey on Invoice
Data Content
Summary
No problem for eInvoicing within a member state
Business can carry out cross border electronic transactions but
differences in MS regulation could cause problems in some
situations to trading partners
Next Steps proposed:
Resolve identified differences in national regulation
Develop Common best practice procedures in electronic
invoicing to complement the 25 National Guidelines for cross
border electronic invoicing, it would help business and SMEs
eInvoicing WS Public Event, Brussels 11 April 2006
25. Thank you
Questions/comments?
<mounir.el-khoury@pi.be>
http://comelec.afnor.fr/cen/wsei
eInvoicing WS Public Event, Brussels 11 April 2006