Electronic Invoices (E-Invoices) For The Spanish Market place

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What is an Electronic Invoices or e-Invoices

An electronic invoice (also known as an e-invoice or eBill) is the outcome of a billing strategy that does not demand a paper copy as a backup in order to demonstrate its authenticity. For this explanation, an electronic invoice functions as a application-produced file, which compiles the details connected to a industrial transaction, its payment and corresponding tax obligations.

While we know completely very well what an invoice is, its technical definition is "a document that reflects the delivery of a item or the provision of solutions, along with the due date and the quantity to be paid in consideration."

All invoices, irrespective of the way where they are sent (no matter whether on paper or in electronic format), will need to comprise a series of mandatory fields. Post six of Royal Decree quantity 1496/2003, Spanish law, which regulates the material of an invoice, establishes these fields as:

- Invoice quantity

- Delivery date

- Sender's and recipient's legal name

- Sender's and recipient's Tax ID amount

- Sender's and recipient's legal tackle

- Transaction description (tax base)

- Tax rate

- Tax quantity

- Date of service (if various from the delivery date)

In order to comply with laws and guarantee that an electronic invoice has the very same legal validity as a paper invoice, the corresponding electronic document need to comprise the very same mandatory fields as any other invoice, have got to be signed with an electronic signature primarily based on a acknowledged certificate and have to be sent from one particular laptop to a further with the parties' mutual consent. This blend of elements offers a Telematic Invoice with adequate reliability so as to indisputably ensure its integrity and the authenticity of its origin.

Electronic invoices give an vital suggests of lessening the expenditures of processing, sending, distributing and sustaining invoices, resulting in a simplification of administrative approaches and a considerable reduction in the quantity of time and area consumed, as the invoices are transmitted by means of telematic suggests, achieved by means of utilizing technical certification mechanisms (electronic signatures), which ensure the essential variables expected in any invoice (the authenticity of its origin and integrity of its material) and permit them to be maintained in digital format, which affords instant access to them at any offered second.

Electronic invoices involve all of the data needed in a common, paper invoice in an encrypted format, which include specifics on the sender and recipient, which include their name and Tax ID range, the date of the invoice, the sender's legal deal with, the sum of the invoice and the percentage and quantity of VAT, amongst other information and facts.

Additionally, the document consists of an electronic signature, which is produced making use of a digital certificate that has been given to the sender of the invoice by means of a Tax Agency-authorized certificate firm. This mixture of components presents a Electronic Invoice with adequate reliability so as to indisputably make certain its integrity and the authenticity of its origin.

Electronic invoices encourage organisations to discontinue the employ of paper invoices, replacing them with a digital edition of an electronically-produced tax document, which has the exact same legal validity as the common edition and preserves a faithful record of all industrial transactions. In this way, the complete billing process can be administered electronically. On the other hand, it is necessary to recall that volume of Worth Extra Tax have to be integrated on each and every Invoice.

Rewards of Making use of Electronic Invoices (e-Invoices or eBills)

Based on a organization's quantity, the cost savings connected to invoice control (receipt, storage, search, signing, returning, payment, shipping, and so forth.) can fluctuate amongst 40% and 80%. Some of the good reasons for this financial savings are:

- Timeliness, the two in getting and sending the facts

- Cost savings on paper offers

- Ease of auditing

- Greater safety and document manage

- Decreased choices for falsification

- Effortless access to the specifics

- Reduction in the room necessary for storing archival documents

- Faster and even more effective administrative methods

Automating as countless processes as conceivable via an included solution, which optimally manages these duties, outcomes in a straight proportionate decrease in choices for human error Although rising the options for financial savings and Increased efficiency. Even collections can be managed immediately, sending the corresponding overdue notices as particular pre-defined thresholds are reached.

In addition, although providers use this technological innovation, they are motivated to digitalize other documents, as a result attaining efficiency and financial savings in additional locations of the corporation. Manage of taxes is also Greater with electronic billing mainly because it makes it possible for for Increased management over tax compliance and simplifies the auditing process.

The Principal Regulations Governing Electronic Invoices (e-Invoices or eBills)

In Spain, Directive quantity 115/2001 often applies, Despite the fact that these laws have also been reinforced in national policy, especially in the following regulations:

- Royal Decree range 1496/2003 Billing Laws.

- Royal Decree range 87/2005 Amendments to Billing Laws.

- Ministerial Mandate quantity EHA/962/2007 of April 10th (entered in the Federal Registry on April 14th, 2007), which supplemental develops specific provisions for telematic billing and digital storage of invoices, elaborating on Royal Decree range 1496/2003 of November 28th, in which the laws governing billing-connected obligations had been adopted.

- Ministerial Mandate range PRE/2971/2007 of October 5th (entered in the Federal Registry on October 15th, 2007) regarding invoices issued via electronic indicates even though the recipient is the Common State Administration or a public company connected with or Depending on it, as effectively as the submission of invoices issued by means of folks to the Basic State Administration or the public firms that are connected with or Based on it.

Several self-governing provincial councils (in Alava, Guipuzcoa, Navarra and Vizcaya) have reproduced these similar laws, appending a translation of them in Basque dialect.

Kinds of Electronic Invoices

An electronic invoice is 1 which meets the exact same needs that apply to invoices issued on paper, except that it is presented in electronic format and its authenticity and integrity are assured. In order to ensure a document's authenticity and integrity, there are 3 conceivable procedures:

- Utilization of a acknowledged digital signature, which is based mostly on a acknowledged certificate and produced by using a safe gadget for building signatures.

- Remittance by means of an "EDI" strategy, which assures integrity and authenticity.

- Employ of one other approach which, in the viewpoint of the Auditing Division of the State Tax Agency, guarantees authenticity and integrity, anytime the taxpayer issuing the invoice has applied for Agency approval of the approach in query.

Often, the employ of a acknowledged electronic signature is regarded to be an significant element of electronic invoices.

The Conversion of Paper Invoices into Electronic Invoices and Vice Versa

The latest publication of Ministerial Mandate range EHA/962/2007 defines the variables very important for converting paper invoices into their electronic equivalent, building that the digitalization process have to make certain that the outcome is a faithful reproduction of the authentic, paper document and that the digitalization gadget (scanner) have got to produce the image along with a Certified Electronic Signature (as defined in Directive range 1999/93). The process by way of which this is achieved is designated as "Qualified Digitalization."

In addition, these laws state that electronic invoices can be transcribed on paper, which includes the graphic marks certifying their authentication, generated according to PDF 417 requirements, as set forth in Solution amount 2/2003 of February 14th of 2003 via the Common Board of the State Tax Administration Agency, covering specific factors associated to telematic billing.

There are, Nevertheless, no formal needs concerning the manner where an invoice ought to be encrypted.

Julia Sanchez Meynial - Marketing and advertising Director
Pixelware - We Specialize on Data, Records and Company Processes Manage
Net: www.pixelware.com/en/household.htm

Amongst other folks, Pixelware has developed various Firm Services for the Electronic Invoicing and Document Process Control, which facilitate compliance with the laws governing electronic invoices or e-invoices.