After 2013, the Spanish Parliament accredited the Law towards the Promotion of Electronic Invoicing plus the Innovation of the Accounting Register of Invoices within the Public Sector (Law 25/2013 of December 27, 2013). Its goal will be to decrease the amount of late payments by Public Administrations, which can impinge on company funding, avoid the negative impacts on job opportunity and guarantee its survival.
The new law will come into effect on January 15th, 2015 for those who electronically file their taxation statements, as the approval of new law involves a review of the work strategies and the systems used in this area. Public Administrations as well as private companies are honored twelve months, 2014, to incorporate the fresh digital methodology in to their operations.
The goal of Law 25/2013 is to safeguard providers and improve transparency and efficiency levels in processes controlled by Public Administrations. As such, the new legal rules will secure companies from latter payments, as all invoices are digitally registered, and increase the battle against fraud, when all invoices impending for payments are documented and revealed.
The passage of this regulation promotes the practices of electronic invoicing in the public and private sector, as e-Invoicing can be described as tool that's attaining more importance inside the European Union through several ordinances. Explicitly, in Spain, providers would be better guarded inside their business-related relations with Public Administrations through the creation of an Accounting Register of Invoices. This register is previously mandatory and must be utilized by Public Administrations and companies to present invoices; this guarantees that all invoice dates are duly accredited and will be considered for accrual of interests on amounts due.
Several of the key points of electronic invoicing operations underneath Law 25/2013 towards the "Promotion of Electronic Invoicing plus the Conception of an Accounting Register of Invoices inside the Public Sector" are:
1. As the law consists of a common standard, it is compulsory for all those Public Administrations over a national, state and local area level.
2. The electronic invoice is required to be delivered using a regulatory format and to be signed with an innovative electronic signature or an advanced electronic seal.
3. Accounting details of electronic invoices should be created by the Public Administration body or unit responsible for accounting, after receiving the invoices from the Accounting Register of Invoices. This new practice for invoice control was implemented on January 1, 2014.
4. By regulation and as from January 15, 2015, invoices for bills under 5,000 Euros might be missed from accounting records.
5. The invoice processing updates may be checked-out any time by the service provider who supplied the invoice.
Because of the new Law 25/2013, Spain is moving perfectly into a general electronic law reinforcement and control that means that an overall usage of this electronic signature and electronic documentation is on the rise.
As explained in one of the latest web-log posts entitled "Electronic Invoicing in 2013", European Directive 2010/45/EU determines that conventional paper and electronic invoices are alike legally & fiscally. In truth, the European Commission intends to make sure extensive utilization of electronic invoices in European union through the year 2020.
Alternatively, as mentioned in the opinion post titled "Electronic invoices and how they must be used" it seems that interaction methods between the general public and Public Administrations are transforming, although not at the rate anticipated by governmental bodies after the early investments made. At this time, the task of document management software services is to demystify the popular belief that document software technology is only within the reach of big agencies.
From a scientific point of view, having an adequate document management solution lets companies to abide by the law with out extra efforts or additional costs. After all, this sort of software:
- Permits companies to prepare electronic invoices that fulfill the needs of Spanish Tax Agency (AEAT).
- Enables electronic invoices being granted in digital format, together with the creation and digital signature of documents.
- Works with electronic invoices and certifies their particular elements.
- Confirms the sender's signature and real identity along with the validity of certificate utilized to sign any electronic invoice.
- Creates audit trails showing all procedures undertaken at the invoice.
From the business standpoint, document management software saves expenditures and time together with expanding the safety and quality of service provided.
- Price savings are generated, as the utilization of paper, toner, shipment charges and storage space etc. are eradicated or reduced.
- Management times are minimized merely because of the faster and a lot more efficient management procedure, which contributes to speedier localization of up-to-date details.
- Security is increased, as electronic signatures lessen the chance of counterfeiting and minimize the chance for human slip-up.
- The standard of Support service is upgraded since a new approach of communication with purchaser is set-up, because invoice processing and distribution times are improved and because web-based settlement of documents is allowed.
Every day, an increasing number of companies are looking for optimizing their operations in an effort to obtain efficiency and conserve expenses. In the end, when applying electronic invoicing, along with an adequate document management solution, their productivity boosts and also the quality of their customer service upgraded which straight away and favorably influences the company's business competitiveness.