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e-Invoicing Observations fromEC Expert Group and Nordic implementationMoscow27.4.2012Bo Harald

© 2010 Tieto Corporation

Story-line and questions• EU and national states globally drive e-Invoicing > When will

the Russian public sector make e-invoicing mandatory?• Nordic countries already moving to next layers – the Real

Time Economy > Russia is well placed to do the same• VAT automation is important step > Russia ahead of the

game• Cross-border invoicing needs support next – tax invoice to

customs?• SKB Kontur is a very impressive company to partner

with for Tieto

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EU and national states drive e-invoicing

© 2010 Tieto Corporation

Agenda in many countries:

1.Create a clear perspective on what is really necessary to get E-invoicing numbers up fast and

2.assure sync with the international developments.

•  

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© 2010 Tieto Corporation

Major steps for productivity and the Single Market

• Two key recommendations implemented• New VAT directive – equal

treatment (no mandatory digital signatures)

• ISO20022 global message standard

• Next natural step• Harmonized and automated

VAT-reporting and -collection with split-payment model

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© 2010 Tieto Corporation

54bn reasons in Germany“The bulk of the companies [SMEs in Germany]

squander the sizeable efficiency gains

that come with the introduction of digital invoices

The German economy offers total cost-savings potential of around EUR 54 bn,

mainly in more efficient processes (immediate further processing of invoice data in company

bookkeeping and controlling systems)

Why don’t more companies make use of digital invoicing?”

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Deutsche Bank Research report (Emphasis mine)

© 2010 Tieto Corporation

Crystal clear mindset:

Paper invoices have NO future in EU

EC Expert Group on e-Invoicing

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Lessons learned in Nordics

© 2010 Tieto Corporation

What we would do differently now: solutions• Scanning invoices delayed

migration to e-invoicing for no good reason

• Buyer-specific portals deployed despite most enterprises signed up by generic portal service providers

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© 2010 Tieto Corporation

What we would do differently now: communication• Cost-cutting aspect dwarfed

other - even more important aspects

• Earlier deadlines for paper and PDF

• Late and patchy visible pricing for paper invoices.

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© 2010 Tieto Corporation

What we would do differently now: involvement

• SME-sector’s organizations were not involved strongly enough in the beginning 

• Accounting profession should have been strongly involved from the beginning

• Municipal sector should do more for tax payers and driving local enterprises

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© 2010 Tieto Corporation

What we would do differently now: standards• The Finvoice standard was not

implemented strictly enough in the beginning

• Separate bank network initially supporting only Finvoice

• Too radical attempt to eliminate use of attachments in Finvoice standard.

• International work should have started earlier

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© 2010 Tieto Corporation

What we would do differently now: internationally• Wrong order in SEPA

payments first - e-invoicing later – despite our protests…

• Direct debit should be part of e-Invoicing

• Global aspects should be taken into account from the start

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© 2010 Tieto Corporation

Nordics are example for EU

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The best way to …

approach ane-invoicing program

© 2010 Tieto Corporation

Numbers up fast.. • Only one way – invoice receivers

make it mandatory in the public sector – and in large organizations

Why?• SME senders do not have big

immediate benefits and do not see the big ones coming in next phases

• Immediate benefits for society at large, EU, the public sector and large enterprises are enormous.. – cannot wait – deadlines needed

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© 2010 Tieto Corporation

Example of clear deadlinesUnited Paper Mills (UPM) letter to suppliers:

Model case: NO scanning04/08/23

© 2010 Tieto Corporation

UPM not alone – deadlines (examples) for incoming paper & PDF:

2005 – 2008

Denmark (by law)

Nordea Bank Tampere Singapore Italy (by law)

Lindström 2009

IBMHP OpusCapita Aditro Tieto UPM

2009 cont.

Rautaruukki Helsinki Kesko Wärtsilä Hansel Spain

Sweden Götene

Finland

TEKES KELA

2010

Kone Aalto University Fed of Financial Services Borås Blekinge Jönköping Elisa BaswareTurku Deloitte Espoo Bank of Finland Nokia NSN Kauniainen

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© 2010 Tieto Corporation

UPM not alone – deadlines (examples) for incoming paper & PDF:

2011contOP Bank

Sanomat

RAYYLE Uusikaupunki

LahtiVantaa

Kirkkonummi MTV3 Turku University

Mexico (by law)

Lappeenranta Siilinjärvi Oulunkaaren Ky

Forssa Saarijärvi Eura

2012 Nordic Investment Bank

Kazakstan

Norway

Technology Industry FedUSA

Canada

Russia?The Netherlands?

2010 contVattenfall Oulu Brazil (by law)

Greece (by law)PwC Tampere Chamber Stora Enso Ahlström Hämeenlinna 2011Finnair TeliaSonera OutokumpuNeste OilIlmarinen

Vaasan Sähkö

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© 2010 Tieto CorporationPage 202006-03-23

“Ice Age”

“Huge Ice Age”

3 approaches to adopting technology“Any hype will do”Early start: “Explorer”Late (re)start: “Panicky follower”

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© 2010 Tieto Corporation 04/08/23

If you want to go fast – go alone.If far – go together

We believe in:Collaborative offerings, making the markets and creating networks and standards:

© 2010 Tieto Corporation

Wisdom from ice hockey:

go where it is going!”

“Do not go where the puck is >

Wayne Gretzky

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© 2010 Tieto Corporation

The future is not plannednor prognosed

Thank youbo.harald@tieto.com,

http://boharald.blogspot.com

It is created !

04/08/23