Friday 29th January, 2021
The European Commission has published the second version of a report that provides an in-depth analysis of the benefits of implementing electronic invoicing in line with the B2G eInvoicing Directive released in April 2018.
According to data collected from 16 Member States, eInvoicing greatly accelerates processing speed by reducing errors, which decreases the time taken to pay suppliers. This in turn improves the relationship between public contracting authorities and suppliers. Belgium, Cyprus and Denmark reported an average of 30% reduction in time-to-payment.
Other highlights include the improved monitoring of payments and the ability to automatically authenticate business counterparts through eInvoicing networks such as Peppol in Sweden, thereby contributing to the automation of eProcurement processes.
The report also looked at cost and operational savings in the processing of invoices. Finland reported a reduction in operational cost (10%) in 2019 due to the reception of 95% invoices in electronic format. Italy also believes in the eInvoicing large scale adoption with 1.1billion savings estimated for the public sector over the same year.
Report highlights benefits in the following areas:
• fostering the creation of new legal and policy initiatives at the national level
• cost and operational savings
• reduction of administrative burden
• reduced time to payment for individual invoices
• facilitation of cross-border trade.
EU countries have implemented B2G eInvoicing at a sub-central (regional and local) level, under the European standard on eInvoicing. The standard enables smooth domestic eInvoice exchange and enhances cross-border interoperability and trade.