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In recent years, an increasing number of countries have introduced so-called invoice clearance procedures. Before electronic invoices can be sent to the recipient, they must be checked and approved by a central government agency. The primary concern is the correct reporting of tax data. These clearance models are usually referred to as Continuous Transaction Controls (CTCs) because the verification takes place in near real-time. CTCs aim to reduce the VAT gap. Governments use this term to describe the loss of tax revenue due to missing or incorrectly reported tax data.The first countries to implement such models are in Latin America. They are already discussing extensions such as the reporting of incoming payments or certain tax benefits. The EU is also considering CTC. Just at the end of last year, an important package of measures entitled "VAT in the Digital Age", or VIDA for short, was adopted. This creates a framework for how tax reporting for companies in the EU should look in the future.Companies in France will have to be "clearance-ready" by 2024In France, a CTC model for B2G (business to government) transactions has been in place for several years. Invoices to public institutions must be sent to a central government portal called "Chorus Pro". In July 2024, this procedure will be gradually extended to B2B (business to business) transactions.From July 2024, all companies with a French tax number must be able to receive domestic invoices via the new clearing procedure. Large corporations must also be able to send invoices using the new procedure from July next year. Medium-sized businesses will be required to do so from 2025 and smaller companies from 2026.In addition to the e-invoicing obligation, there is also an e-reporting obligation. This applies primarily to cross-border invoicing and relates to invoices that are not already covered by the national clearance procedure, for example, invoices from other European countries. Their tax data must also be reported to the French tax authorities.What does the French clearance model look like?Before the introduction, France evaluated and compared different CTC models from other countries. It chose a decentralized approach that gives maximum flexibility to market players. The invoice sender or recipient has two options here: Either they send the invoices directly to the central government portal PPF (Portail Public de Facturation, an evolution of the "Chorus Pro" portal already used for B2G). Or they work with certified providers called PDP (Plateforme de Dématérialisation Partenaire). The PDP receive the invoices, report the tax data to the central PPF platform and forward the invoice to the recipient.Each French company is free to choose whether to work with a PDP or to connect directly to the central PPF platform. In addition to the PDP, there will be another type of provider, the so-called OD (Opérateur de Dématérialisation). Only PDP are allowed to send invoices directly from a supplier to a customer and report tax data to the central PPF platform.However, ODs can also provide additional value-added services, such as matching an invoice against specific "requirement data" such as the purchase order or advance shipping notice. This can ensure that only invoices that have undergone successful upstream validation enter the clearance process. Lengthy and cumbersome cancellation processes can thus be avoided.In addition to transmitting invoice data and tax messages, suppliers in France must support a standardized status model. The so-called "lifecycle status" of an invoice can go through several phases. The following statuses are mandatory and must be supported by all parties: "Submitted", "Refused ", "Rejected" and "Payment Received".Decentralized clearance model in France:How does SupplyOn support the new French clearance model?SupplyOn Invoicing already covers the French invoicing requirements. SupplyOn also offers a solution for the new French clearing procedure. The development team is already working on an extension for Invoicing to support the new French CTC procedure from July 2024. This solution extension will be available in time for SupplyOn customers to prepare. During solution design, SupplyOn works closely with government agencies and consulting firms to ensure that all requirements are directly incorporated into the product.SupplyOn Invoicing enables suppliers to check invoices against various quality criteria before sending them. This can be a check against a purchase order (PO) or against customer-specific specifications. In this way, suppliers can be sure that their invoices will be accepted by the customer and paid promptly. Time-consuming correction processes are eliminated. In case of discrepancies, suppliers can work directly with their customers to find a solution.For customers, SupplyOn Invoicing is an upstream quality gate that checks invoices in advance and ensures a consistently high level of quality. This leads to an almost completely automated invoice receipt process.The planned solution expansion for France thus ensures that SupplyOn customers continue to enjoy all the benefits of Invoicing and can use the service as usual.
The Bosch Group receives its suppliers' invoices through many different channels, from paper to eInvoicing. Until recently, however, suppliers could obtain an overview of the processing status only for electronically sent invoices. As a result, in addition to balance confirmations or reminders, general inquiries about payment dates or the status of an invoice began to accumulate. For this reason, Bosch, together with SupplyOn, developed a Finance Portal that provides suppliers with a comprehensive view of the processing status regardless of the invoice channel. A request channel in the Finance Portal, which is integrated with other Bosch tools, further reduces internal administrative work and increases the service level. (more…)
Despite all the buzz over catchwords like Industry 4.0, automation and digital transformation, when it comes to invoicing, we still live in a mainly analogue, non-electronic, non-automated world. Even today, at the close of 2019, the majority of invoices is sent in paper or unstructured formats. Formats that cannot (or hardly) be processed electronically. This has considerable consequences for companies, locking up resources, time and money. To gain a clearer picture on the real effects of e-invoicing, we conducted a scientific survey. (more…)