In November, PwC and DocProcess held The E-Invoicing Conference 2018 edition, regarding Directive 2014/55/EU which mandates the use of e-documents in B2G procurement. The Directive comes into force April, 18th, 2019.
The Directive states:
The European Parliament and Council voted on the 16th of April 2014 Directive 2014/55/EU on electronic invoicing in public procurement.
Member States shall adopt, publish and apply the provisions necessary to comply with the obligation contained in Article 7 to receive and process electronic invoices. This involves adopting measures that require contracting authorities and entities that are within the scope of the directive to be able to receive and process electronic invoices that comply to the European standard (EN 16931) on electronic invoice by April 18th, 2019, 18 months after the publication of reference to the standard in the OJEU. The Member States will have to communicate the text of those measures to the Commission.*
PWC and DocProcess partnered to raise awareness of e-Invoicing among Romanian companies and help clients manage the digital transformation imperative. Switching to e-Invoicing plus RPA (Robotic Process Automation) can help a company become digitally mature in terms of procurement, logistics and finance and accounting.
A lot of questions…
Mircea Bozga (PwC), Georgiana Iancu (PwC), Raluca Gheorghita (PwC), Liviu Apolozan (DocProcess) and Ileana Chermenschi (DocProcess) moderated the conference on topics such as:
- what is considered a fiscally correct invoice?
- what are the implications of EU55 on public procurement and when Romania shall be mandated to implement it
- is Romania heading towards a “real-time VAT” or “clearing house” model as a means to reduce VAT gap? The case of Latin America and the upcoming case of Italy implementing the real-time VAT starting January, 1st, 2019 were presented.
- what are the benefits for the B2B environment of this Directive. Recent European examples prove that B2B commerce benefited greatly in terms of operational efficiency, elimination of errors, compliance, VAT deductions and speedier audits.
- how are invoices, orders and associated documents in electronic format to be stored in a records management platform? and whether physical archives are still required if documents are scanned and stored in an electronic format.
Tools to support digital transformation
The event ended with a public demo of several tools that help companies become compliant and more efficient at the same time:
- DocXchange platform which is an automation platform capable of document intermediation and control as well as its newly launched
- DxArchive service – a cloud-based document and record management solution for P2P documents.
Together, these two platform form the basis of digital transformation in the Purchase to Pay process, spanning procurement, logistics, accounting and finance departments.
PwC in CEE has developed 2 tools (VAT Fraud Tracker and FAIT) which allow:
- VAT Fraud Tracker which monitors both current and historical data to track anomalies and consequently commodities vulnerable to fraud;
- FAIT (Fraud Assessment and Intelligence Tool) which screens local business partners to identify those most likely to commit fraud
In conclusion, there are many opportunities for companies to automate their activity and become compliant. Whether Romania will adopt the EU55 in due time (April 18th, 2019) or it would choose to delay the process by 18 months, one thing is certain: the use of e-invoicing (moving from paper documents to structured documents, able to be processed automatically by robots) brings speed, efficiency and cost reduction up to 80% in the process of document control.