Discover the Best E Invoice Format for Banking to Streamline Your Processes

E invoice format for Banking

hello hello everyone uh yes we are live uh here on our webinar platform and also uh on our YouTube channel so welcome to our webinar my name is solena gruk I'm the CE director at the smme banking club and from this year also founder and director at VA digital and this is the platform form where we promote and develop the digitalization of receivable finance and build an active community of experts e get to drive change in receivable Finance so welcome to the community as well today we speak about invoicing developments regulation updates and recent use cases and my guests today are Ellen CWI partner at uh PVC Belgium and Global e invoicing and E reporting lead and katalin co-founder and business development director at partner Hub which is an invoicing solution Provider from Hungary Ellen and scarin welcome thank you hello yeah before we get to our topic let me very shortly mention the organizational information so we plan our webinar for 45 50 minutes uh we start from the presentations and right after the presentations we will have a Q&A session and we will be ready to answer your questions so please type your questions uh in the chat uh at once when you have them during the presentations and we will be able to answer them in the second part of the webinar during the Q&A session and uh we are recording this webinar so right after we finish you will receive the link to the video and the presentations all right so let's go to to our topic um we all know that uh invoicing group regulations are coming by 2027 invoicing will be mandatory in the largest number of the European Union countries and outside European Union as well so let us discuss the regulatory landscape and uh after that what all that means to the for the financial industry so I'm uh handing over a microphone to you Ellen and katalin and Ellen let's start from from from your from the perfect uh so hello everyone Thanks for for joining in on on this webinar and thank you Elena for the for the kind invitation um so I will indeed uh first highlight a bit uh what is the regulatory uh landscape around invoicing focusing on Europe but also focusing on some of the global developments the why Behind These developments are happening globally and then also how they impact businesses nowadays and then of course um we will have C who will zoom into uh the specific uh impact that all of this will have uh for the financial industry specifically so maybe starting off with um with some backgrounds so Elina you you mentioned there is a very strong increase in the regulatory landscape uh when it comes to e invoicing obligations and that is very much so as you can also see uh being highlighted here on on on this slide uh where you can see that nowadays the the number of E requ requirements uh which are categorized as mandatory e invoicing obligations um simply set you are no longer able to send the invoice in the way you want to send it uh towards your buyer but you are forced to either use government platforms before doing uh for doing that or uh you need to um have the the government perform specific validations clearance processes uh before you actually can send your invoice towards your buyer or uh in some cases uh there are realtime reporting obligations meaning your your invoice information also needs to be submitted post issuance of the invoice towards the tax Authority so that they can of course also make use of that data uh typically this is happening in near real time so within a few few days uh usually uh and again in a structured format in a predefined format again given uh the the authorities a lot of flexibility uh to work uh with that information and then under e requirements we also categorize a third type of requirement that we see popping up more and more the so-called un request e audit requirements meaning um you need to be able to extract to present your accounting information which goes a bit beyond the pure invoice information uh also in a predefined format uh on the request of the uh of the authorities either because they ask for it for instance during an audit or even periodically where in some cases it is even uh already replacing some of the existing compliance obligations if you look at the impact that these requirements nowadays have you can see that nowadays already more than 80 countries have one or a combination of these systems being implemented and I think and and that's precisely why we're having this discussion today the 60 uh figure on the on the slide is even more impactful where you can see that there are already more than 60 new obligations currently being anounced by by governments worldwide so overall a very big impact for for businesses and a lot to u to take into account for for the future why is this happening um you will not be surprised that a lot of this is revenue driven there there's the so-called vat Gap the vat Gap being being the difference between what governments should collect in terms of V Revenue versus what they actually collect and that amount is huge uh which means that for a government it is very beneficial to um to to foresee systems that allow them to collect in a better way the vat that they should already owe um rather than imposing for instance additional taxes to businesses there are of course also a lot of other revenu driven uh impacts think about yeah the covid-19 expenditure uh recovery inflation the high energy cost environmental pressure which all uh I would say um yeah emphasize that need for governments to have sufficient focus on uh revenue on the other hand you also have um yeah the process in itself the focus of tax authorities that is changing meaning that also within the government um there is a so-called digital transformation process going on so they're moving away from conducting audits based on aggregated information based on information that they um really gather behind the fact even years later uh following the transactions to a more realtime way of auditing uh taxpayers in their countries uh this is what uh is being referred to as as the oecd tax administration 3.0 which is very much focused on that then of course and we hear it every day everywhere nowadays uh the use of Advanced Technologies think about geni um that will of course um be possible for for governments to use uh on top of the massive amounts of data that they are collecting nowadays um which is of course I would say giving them really a head start when uh using that that new types of Technologies uh to um yeah to to make better use of the data that they're collecting and then the third element and I think that's a very important one and and we'll come to that when we're discussing about the specific use cases got will will focus on that it's also about creating a win-win for governments and for businesses because especially if you look at e invoicing obligations yeah it's just it's not just a matter of imposing an additional compliance obligation towards businesses it's also uh something if if done right of course by a business that will allow them to rethink their their current processes and think about efficiency gain uh efficiency gain sorry in uh in the over process and I think the evidence is there that it indeed Works uh for governments I've named here on on the slide two examples you have Mexico where uh e invoicing and E accounting was already implemented many many years ago while Mexico was able to reduce their overall vat Gap with more than 50% also if you look at the more recent example Italy that was I would say one of the Front Runners in Europe Europe when implementing e invoicing requirements they have also reduced their fat Gap immensely as so here it's mentioned 10 to 11% of the overall vat Gap in only a very few years after uh the implementation of mandatory e enforcing so it works uh it gives businesses and authorities uh the possibility to optimize their uh process which means that of course and we'll come to that on this slide it is something that is very popular being implemented by many governments all around the globe nowaday so what you're currently seeing is a high level EU and non-eu watch list so an overview of those uh requirements that are coming your way in the near future and today we will not have the time to to look into each and every country obligation but I I just want to pick out some obligations just to make sure or or to make you aware that this is not happening only in a few countries but is really happening uh all around the globe nowadays so if we look at uh some of the I would say the recent requirements that are being implemented or that are soon to be implemented I think Romania is a good example uh where only yesterday the B2B e invoicing uh kicked off uh also earlier this year not only mandatory invo in was implemented by Romania but also a real-time reporting obligation was uh implemented on top of that to Showcase that it's not because a country has decided to go for mandatory invoicing that that will limit them uh to implement some of the other requirements that I referred to in the introduction I think here also Romania is a very good example because they first implemented the so-called safy requirements at the standard audit file for tax whereas now they have also implemented uh real-time reporting and mandatory uh B2B enforcing on top of that the way that the Romanian mandate will work uh is on the basis of a of a centralized government system that will be responsible for the actual delivery of the invoice documents uh towards the uh buyers another uh example uh of a requirement that will be implemented uh very shortly a bit further way though is Malaysia so Malaysia will also Implement B2B b2g invoicing uh for the largest taxpayers as from August of this year um why is this so relevant because it's clear that Malaysia can be I would say the front runner um of uh yeah what will happen around invoicing for the Asia Pacific region for the next couple of years so we see that with the introduction of B2B invoicing in Malaysia also Singapore for instance has taken its first steps into the introduction of the B2B invoicing mandate not a nationwide mandate to so not um not per se the same as what Malaysia did but really focusing on the newly registered uh GST taxpayers in in their country if you look a bit further down the line you can see that there are a lot of big economies in Europe being mentioned uh you have Poland uh that will move in into mandatory B2B invoicing initially they plan to do so already for July of this year as well they have postponed the introduction of their requirements a bit uh to 2026 as you can see so as from February or April depending on which roll out W if you're in uh also there B2B invoicing will be will become mandatory and the same will happen in France also with a bit bit of a delay uh because initially also France was in end intending sorry to implement their B2B invoicing mandate this year they have postponed this as well uh to September 2026 maybe a last country to highlight before I move into the European overall developments or maybe two if I if I may uh two countries that are relevant to mention are Germany and Belgium uh so Germany will move into mandatory invoicing as well they will do so in a face manner focusing first on um the uh mandatory receipts of of e invoicing meaning that as from uh January 2025 if you're a company established in Germany and you're receiving a structured electronic invoice that is interoperable with the so-called European Norm you are no longer able to refuse to receive that invoice document in that for in that format only afterwards Germany will also implement M it as a mandatory thing on the sending side in a waved approach um meaning that then also yeah the the senders of invoices will be obliged to start sending uh electronic invoices in structured format and then the last one Belgium I wanted to mention because it's of course a country close to to my heart um so Belgium will also Implement B2B invoicing they will do so as from January 2026 uh in a bang approach so not based on the the size of the company for instance not distinguishing between AP or ar they will implement it big bang for all businesses in Belgium uh as from gen 26 H and the system they will use to implement it uh is uh pepo now zooming out a bit uh to um what is Europe's response uh towards all of these trends and all of these requirements happening well of course you heard me refer to the fact that there are things like safety there are things like e invoicing realtime reporting within the um e invoicing mandates you also see a lot of differences clearance based systems distribution based systems and so on and so forth interoperability system so there is a lot of variety um not a lot of standardization happening in the European requirements and also the European commission realized that that of course is putting a lot of burden on businesses so that is one of the reasons why they started uh the so-called VA initiative so vat in the digital age which is basically their initiative to modernize some of the existing um vat rules vat compliance obligations uh for the European markets so feda is a package of legislation which basically consists of three main topics so you have the the digital reporting requirements very much the topic of today e invoicing real-time reporting you have the platform uh economy um and then you also have an aspect around the single vet registration and that will allow businesses or reduce the need to have multiple vat registrations uh for those businesses that are indeed selling to Consumers all across the EU it's important to understand that this is a package of of legislation uh that also also needs to implement it be implemented sorry and be approved as a package uh by all uh EU member states um as a way to modernize the current fat rules what is now being proposed under this feda package specifically related to E invoicing and real-time reporting well it's basically that e invoicing where it is now an option for member states uh to to implement it that e invoicing should really become the default option which is a mandatory process in any case for transactions between two EU member states but also here the member states will have the flexibility to implement it also as a mandatory element for the domestic transactions why are they implementing uh or do they want to implement e invoicing as the default option because they want to be able to use the E invoicing data as the basis for a real-time reporting uh requirement a digital reporting requirement to replace the current aggregated way of reporting again um that is part of the EC sales listing in some uh countries also the EC purchase listing so they want to uh really make use of the invoicing data for doing so when are they planning to implement this requirement well ing to the draft uh legislation they would like to implement it as from July 2030 with the possibility for the countries that have already system in place to uh only converge into the new EU model by 2035 so that is what is currently on the table we were hoping uh to to bring during this webinar uh the fact that it has been approved on EU level however during the ecoin meeting that was held um end of June the VA proposal was not approved by all EU member states because there was one member State meaning uh being Estonia who was against one of the elements out of the vaita package however it's important to say that on the drr front so on the digital reporting requirements and E invoicing all member states were aligned were positive uh about the proposed amendments so the the discussions will now continue mainly on that other aspect it will be transferred to the new uh presidency which will be Hungary to continue the discussions between the member states but uh no big changes are expected to the drr related part knowing that all member states were already in agreement with that that uh side of things so important to also keep track of this one because it will definitely impact the way that uh the invoicing landscape in Europe uh will look like in the future if we now look at okay what is the impact uh that all of this has to your traditional uh vat compliance process as a business well you see if you compare that's what what is mentioned on top of this slide a traditional V compliance process it typically starts with a V invoice that is being sent out out of your Erp system uh out of a bolom system think about procurement systems that you're using um to create that invoice it will be based on Master transactional information that you again have available in your Erp solution or in Bolton Solutions after that after the invoicing process has taken place you will extract the data again from your Erp from bolon Solutions you will cleanse you will transform that information and you will include it as part of your standard V returns other related returns um you will perform some reconciliation some analytics and you will put all of that as part of your vat or legal archives years later when there are Vat audits being conducted that will your source of truths the information that you indeed have um in your V legal archive but where you still had the possibility to cleanse to transform that information before it is being submitted towards the tax authorities if you compare however this situation with a situation where there is realtime reporting um being obliged by the member State well then of course you will see that um the the the accuracy of your master and transactional information becomes much much much more important because first of all you need to be able to rely on that Master data to say well is this transaction in scope not in scope of the E invoicing obligation um but you will also see that um you will use that information that needs to be right as from the start um to indeed um invoice your transactions over for instance a government run system if I making uh the link with with the distribution based systems that I refer to uh it also means that uh the the data that you will use in order to perform your uh standard V and related returns that that will be come from the the tax Authority system so your your tax Authority system will indeed um become the source of Truth for all the information that will be part of uh the submitted uh vat returns afterwards it means that the the focus is shifting from cleansing and transforming the information before submission of the vet return to really reconciling afterwards um between yeah what is now coming out of my system as my standard Fe return versus the information that I've already submitted in real time towards the government so that's why I mentioned at the bottom there is the need to have your text data right from the start you need to be very um reli reliable let's say as a as a business sorry on the information uh that you have as part of your system um and and the position you're showing in real time uh towards government because also there we see a clear trend for governments to start already the prefilling of your vet return for instance on the basis of the information uh which they have already obtained through invoicing through real-time reporting uh which means that yeah their focus during Ned is also on the differences that are then popping up uh with what you submit in your overall uh vat return afterwards maybe a short note to end before I hand it over to um to Cataline to discuss about yeah some practical use cases for the for the financial industry specifically I think hearing uh all of this hearing the number of regulatory requirements that are coming your way in the future it seems that for many businesses this is really changing also very drastically the approach they're taking uh towards these uh e requirements in the future meaning that where for a very long time it was uh possible to to be reactive when when a certain regulatory requirement popped up to find at that point in time an appropriate solution uh typically very decentralized very reactive a bit behind effect uh just uh trying to comply with the regulation based on the number of requirements that is coming up for the next couple of years so you've seen the timeline this is no longer a feasible option which means that uh businesses are um focusing more more and more on having a centralized proactive monitoring um function in place to make sure that they're not surprised by any of these requirements which are business critical requirements it's not just the compliance obligation this is really affecting a broad range of stakeholders within the company um it can affect your operational Readiness in a certain country if you're no longer able to send out your invoice to collect the cash linked to that invoice uh in that country which means that the the the approach they're taking is much more centralized with either Global Regional Solutions uh that can really help them also optim their current processes rethink their current processes to really make it something that is future proof um and that is also creating as I uh referred to in the beginning really that win-win situation uh for businesses as well so maybe with that kataline I think I explained a bit around the the regulatory environment so I will now hand it over to you uh for the next part of the session yeah thank you very much much uh Elena can you click to of course yeah thank you very much Ellen for such informative presentations I do invite our webinar guests or participants to type your questions in the chat both to Ellen and now you will hear calin's presentations that we will be able to answer them afterwards thank you and katalin please do continue yes thank you so my name is katalin Cowley I am a co-founder of partner hub and um today I will talk uh a little bit about how invoicing adds value to the digital factoring processes uh bringing some uh statistics and real life uh examples that show that the availability of data uh increases and motivates uh you know the digital financing uh also uh I will bring a case study from from Hungary for embedded Finance how an integrated um uh customer Journey looks like between an online invoicing service provider and a digital factoring company and how the uh digital factoring process can be uh digitalized and in an endtoend way and uh last but least of all uh how to start the value creation using invoice data what are the data sources and what are the first questions that you need to think about so partner Hub just a very short introduction we have an invoicing technology uh and we like all the use cases where invoicing uh meets banking meaning payments and financing uh these use cases are particularly interesting because as Ellen mentioned e invoicing and the introduction of mandatory invoicing we have a very uh beneficial consequence uh namely the uh stand availability of standard and standardized and structured invoice data so you will have a data set for invoice data you already have a data set for financing and these data sets can be uh merged and this uh will help uh Banks and financial service providers to uh to make their processes is much more efficient so the availability of the invoice data will uh will bring a decrease in service costs there are studies that show that uh uh just by digitalizing uh processes the service cost can be uh can be decreased by 30 to 80% obviously if you have uh the invoicing mandates and the tax authorities are also uh involved in the U process for uh real time U real real time um data uh submission to tax authorities then this will be definitely a help in invoice fraud uh the decrease in service costs uh will result in the fact that smaller customers and smaller ticket sizes can be serve uh served profitably and uh this obviously means means that a larger potential customer pool will be available for financing so it's basically new layers of customers coming uh into the revenue pool of financial service providers and the revenue increase together with the uh decrease in service cost and risk costs will decre will uh increase profitability I brought a couple of examples uh from India these examples will not be restricted to the access of invoice data but there is a so-called um account aggregator uh framework in India which is a conent uh based data sharing uh um framework and uh this is uh this was this was brought uh to life to uh basically uh help uh the availability of loans and credits to customers not only business customers but uh but um retail customers as well but you can see the trends uh and the statistics uh how the U how the uh consent based data sharing improved you can see it in the first figures uh you can see that in parallel the value of loan disbursements uh tripled in the last uh two years uh not only uh for business customers but also uh for the retail customers here however uh this account aggregator framework also consists of Digital taex Data and digital invoice data as well uh which will um which will uh cause uh that the availability uh of uh further loans and credit it's uh in smaller sizes Forme customers who are the most uh underserved uh in this respect so you can see that you know as the data access uh grows and the availability of data grows the uh credit volumes also uh grow so this will uh obviously uh be the same uh for uh the availability of invoice data uh I have haven't found specific statistics for that but you can see the trends uh very much in India there is a another framework uh or or thread or platform which is an invoice Marketplace uh platform um um called uh the thres platform uh these uh platforms also uh use uh the account aggregator framework and you can also see the volumes uh increasing as uh the volumes of U the uh data sharings increased in the account aggregator framework that the uh volumes of the threads platforms uh also grew in line with the uh number of em companies registered uh in this framework currently uh this uh framework serves only 1% of the um invoice Finance uh Market in India but uh it shows already uh that uh the increase was very significant in 2022 and 2023 there was an interview uh with one of the participants um of the financial companies in the threat threats platform the CEO of this company told that participating uh such a platform causes um uh F five to s% um for the financed amount of the msme suppliers you can imagine uh what it means uh for a small company to uh have the financing cost decreased by uh this uh this amount so this is a huge uh opportunity I think for both uh financial service providers but also for msme orme companies to uh start uh using and utilizing the value lying in data and the value lying in invoice data this is still uh the example uh from India uh these are the this is a case study that the account aggregator uh framework has published you can see that these two lending companies U that one of the companies uh experienced an almost 30% increase in Revenue after introducing the account aggregator framework uh you can see that the cost of loan processing uh decreased uh to less than a fourth of the uh original uh amount of uh loan processing you can see that for both companies the fraud rates are zero after uh introducing the framework you can see that for landart the operational efficiency uh increased uh with the 38% I really wanted to show you these numbers because you know these are hard facts and existing case studies and not uh only uh theories that you know we think that this would happen or or that would happen this these actually uh happened and have have been uh published uh this is another uh case study from uh Hungary uh this is is an anme company profile uh which uh which is served by the integrated uh uh integrated use case of an online invoicing company and the digital factoring company which I will uh show uh you later however you can see that this smme has uh approximately 500,000 revenues and less than 00,000 profit so you can see that because of the um because of the availability of invoice data smaller customers can also be uh served profitably uh the factoring results so uh after uh this uh product was introduced by the uh two participants of the integration you can see that the uh uh that the uh that there was a significant amount of factored invoices you can see that the average uh average uh value of the factors factored invoices is quite small you can also see that the company experienced a 47 day uh decrease in the Day sales outstanding which is you know it's more than two months for a small company uh like that this means a huge in terms of liquidity uh huge impact in terms of liquidity and you can see that they saved approximately 4,000 only on the financing cost cost which is uh uh which is almost uh 5% of their profit so it's like a huge uh amount in terms of their profitability so this is uh what can be uh what can be achieved if you start using uh invoice data uh in your uh lending operation or invoice financing operations how it can be uh done this will be as I mentioned the case study uh from Hungary uh the integration of an online invoicing solution and the digital factoring solution it means that the uh when you issue the invoice from the online invoicing solution you will have the option to uh to have your uh invoice uh financed and uh why is it uh or how it can be done in practice so the customer Journey looks like that you know you start uh typing in the in appropriate invoice uh details so when you issue the invoice obviously you need the customer name you will uh need the you will need the uh due date and payment method so the uh Financial uh details and payment details uh for the invoice you will also have the item and price data and the invoice amount uh for the invoice and these are the uh these are the uh basic uh basic invoice details that are necessary to uh initiate the invoice uh financing process when you uh issue the invoice there is a real-time risk assessment uh run by the factoring company they uh use the supplier customer data payment terms and the invoice amounts and if the risk assessment is successful the smme can have the money instantly meaning uh within a day but uh this is a this is I think a a fairly good value proposition for a small company that you know you issue the invoice and you can have the uh have the money within within a day basically uh if you have this or if you want to do something like this then the question arises okay it's very nice but how do I get access to invoice data what do I need to do as a first step uh I think the first step is really to start uh to uh map the available data sources in the specific countries because um at the moment U uh the countries have different uh schemes slightly different schemes and the availability of invoice data is there but you need to exactly find out what is available and uh how it is available so what consents are required what are the source systems that you uh need to integrate with and if you have this then you need to think about also not only the technical side of the uh integration strategy but also the business side and the customer Journey uh side so how you will build up your customer Journey who are the partners that you want to work with or need to work with to generate uh more volume uh for your Landing operations uh the data sources that are generally available data can be embedded uh in the invoices so if we have a hybrid invoice data format then no integration uh is required uh customers just can simply upload uh or put their invoices uh in a in a in a file system and then you can start uh retrieving the data from there so that is one thing and that is the easiest thing from a service pro providers perspective if you have uh data available from tax authorities or account aggregators then you need to uh uh then you need to max out this opportunity because this is kind of the easy way because uh tax authorities and the account aggregators are C centralized data sources where uh the customers can give you uh some kind of consent and then you would be able to work with the data available there even if it's like not uh 100% data sources it will be better than uh nothing so you would definitely uh want to have a look at those data sources and if you want to build uh an integrated customer journey and you are also thinking about uh online invoicing service providers or Erp companies as the start of the uh financing processes just as uh you saw in the previous examples then you would need to uh think about with whom you would like to integrate and uh what kind of uh uh what kind of Business Partnership you can do with those companies uh I would yeah I wanted to talk about this today if you would like to dig deeper into the topic then please reach out to olena and to me and we would be more than happy to H get into the details yeah thank you very much katalin for yeah for insightful presentation and the use cases uh and yeah letting uh all of us uh know and focus on the business usage of and seeing the business opportunities in the invoicing uh regulations and invoicing data so let us start the Q&A session we do have questions from our attendees which I will read right away so thank you for your active participation we have first question from brenza which sounds the following how are business approaching Rec caution the pass of e invoicing considering the macroeconomic risks such as changes in the political landscape this year and uh and the next and this actually if I may add this question because it connotates very much alen to your slide to to which I have a question regarding the what actually defines the pace of the in of the implementation of the mandatory invoicing country country in the European Union because we do see that um smaller countries in the EU like Hungary for example or even Serbia which is outside the European Union or Romania is implementing so hungri and Serb implemented already Romania is implementing this year the eing and the bigger economies which are France and Germany are implementing kind of 2027 2028 what actually this different whether there is rather political thing or technical uh technical thing no I well two very fair questions I think it's a bit of a combination of both indeed uh political uh um circumstances that impact I would say the overall Readiness of governments to to move into the direction of e invoicing and I think Brenda's uh question is is a very fair question we've seen a lot of delays a lot of changes uh to initially announced requirements uh that are that are happening making it super hard for businesses to indeed uh make sure that they are well prepared um that uh I would say once a delay is being announced that not all of the the effort that has gone into the initial preparation to to become ready with for instance the Polish requirements and the French requirements that that is all put aside and that's the focus uh will be on something else um so it it's indeed that constant yeah maneuvering or balance ing between the an appropriate level of preparedness to make sure that if a government iness at a certain point in time which was what what happened with Romania as well they just went for it and implementing it that you're indeed ready as a business because the impact may be too high uh from an operational um point of view but also from a financial consequences point of view if you look at the overall penalty regime that is being applied in case of non-compliance in in Romania it is really massive so from from that perspective you as a business cannot risk um missing uh that specific uh that specific obligation um but of course the well the political environment is not really helping the delays are not really helping um and to to your question Alina why do we see Germany France and other jurisdictions only moving uh more recently well of course the vat Gap is is one of the the big drivers in Romania for instance they had the the biggest Gap uh in in in Europe so that was one of the reasons why they simply went for it because they needed to do something to address their vat Gap um but of course it's not the only reason I think the good thing though with I would say the fact that Germany uh but also Belgium are waiting a bit longer is that they're already aligning to the to the maximum extent with that feda initiative so it means that there's still some hope for standardization for harmonization in Europe because um yeah what what these countries would like to avoid is that they Implement something which is or will no longer be compliant with the European rules in a couple of years and therefore all of their effort will be I would say put to waste because uh they need to converge into that new EU model so that I would say is a good thing of them waiting a bit waiting a bit longer uh yes and this actually very much uh uh impacts I would say this interoperability which we are dreaming about right so because there's um invoicing regulations right now are touching uh local level meaning that the invoices issued to the local counter parties to the internal Cod parties where it does not at the moment covers the yeah the um foreign or counterparties right so only after each country implements it on the local level then we can can talk about this interoperability on the um the level between countries or inside the European Union countries that's at least right yes uh and I think it is very important for a business that uh know when you start working you already start using some kind of uh standards and I think the EU standards and the global standards are there the major uh it providers or Erp providers or all Implement these standards unfortunately the local standards are you know are in line with the global standards or European standards obviously with some localization so you you cannot make a big mistake if you start using the standardized uh you know or or the already existing standards because you know they will be there yeah that is the way to go I think and that is the best approach uh with caution so you cannot make a mistake there I fully agree it already gives you a head start so that you can just focus on what is very country specific which is basically yeah the 8020 rule right what is country specific is mostly only 20% of the the the full um yeah semantics for instance that are required so um it it already gives you a head start and a certain level of preparation um to make sure that you can indeed um yeah be compliant in in each and every country that is that is implementing or imposing requirements to you in the future yeah uh we have a question from Maria which is the following so coming from a technology company that would be integrating with e invoicing Solutions are there any list of government approved e invoicing software Solutions per country uh yeah I I I can yeah I can take that one if you if you wish as well and I would say it depends certain countries and it depends on on the the type of mandate the type of requirements that they put forward in some cases where their systems are relying on so-called accredited software providers making the connection between uh senders and recipients of invoices and the government platform then of course a government will make available a list of yeah those certified software providers but it's not that we have one Global standardized list of all approved vendors available it it typically differentiates from country to Country and it also depends on the specific model that is being implemented by that country yeah yeah what we have seen actually here in the C region right in several countries which implemented already that's uh yeah we have an um invoicing platform operated by the government or tax Authority that let's say and all the existing um platforms which are used by businesses or Earp systems should be integrated uh and yeah make it making it possible to exchange the information within in the structured structured format yeah so we have question from Manuel how the factor can assure that invoice that was dispersed after the assessment it will be paid uh to them to the factor right how the datra is notified to do it uh there are differences in in the invoice Finance regulations and uh there are differences also in practices how uh factoring companies are approaching you know this issue at the moment I think this will not uh change uh as opposed to the current practice just the way how it is done so for example in Hungary besides the invoice you also need to issue like a delivery note or certificate of performance which would be issued by the uh buyer anyway so this this would in case of a B2B invoice so this would ensure that the uh that the buyer will actually pay your invoice this can be also digitalized and um there are you know mechanisms how to notify uh the parties of the financing transaction uh but invoicing in itself will not solve all the problems it will solve the data accessibility problem and the digitalization problem uh obviously this is something uh that uh that can be also helped if you have like a track record of a of a relationship between a buyer and the seller you would be able to assess together with the banking transaction data so the payment um data of the invoices whether so what is the probability that specific buyer will pay that invoice or or not so these are these are my answers to to your questions but invoicing is like is a very good thing but not a holy graay so it cannot solve all your problems yeah yeah uh all right so to wrap up uh to this webinar uh yeah the notification no no change yeah so the notification will be yeah defined by the process of digital invoice Finance guess as for now later on you know it might change but as of now it change overnight yeah let's um get back Catal to the yeah business use cases how invoice data can be used in invoice Finance or in factoring uh we do see some [Music] um some uh um delay I would say with um with the implementation of invoicing and I would like to ask you about the hungary's example because um we do know that there is a delay between the DAT between the implementation of invoicing and the data accessibility on the moment when the DAT data become uh accessible to the to the financial um players so how how was in in Hungarian example this time lag and also what is what would be your recommendations to existing or to the to the countries which are implementing the invoicing right now for example like Romania or will be implementing it in the nearest one two years so that at the moment they don't see this or they don't know how they will receive this um sources or this accesses to the to the E invoicing data so um yeah how to build this expectation that that it should be it yeah it should be accessed and that they should use it in their inv in their invoice Finance processes and actually how to do it in practice Yeah so first of all uh in Hungary the realtime data submission obligation was introduced uh first in 2018 it was a phased implementation and from 2020 uh all companies uh who issue invoices must report them real time to the tax Authority uh and then you know we have seen that um these digital factoring Solutions which I mentioned with the samless pon Who and the baor use case and we have an also another use case for k bank who use the tax Authority data so they also came out with their solution uh after four years of the implementation the of the scheme so obviously you know all the all the systems must be upgraded on the uh on the business side but also uh financing companies need to understand the value lying in the invoice data and put into their development uh processes so I think there will be the there will be definitely a time lag but I would expect that you know this is invoicing in is becoming a more mainstream uh thing than you know than it was in 2020 so I think the time lag will be shorter you could see the Indian examples that you know there was a time like there but the increase will be will be really uh massive so that is one thing so I I would expect the implementation time so the decision time that is needed to you know Define your strategy using invoice data and then you know make a plan how you would do it and then the implementation part actually so that takes depending on the size of the organization I don't know from one year to to two years two and a half years depending really you know how big the organization is so that would be my that would be my best guess and uh from the uh from the tax Authority side I would advise the tax authorities also uh have their data strategy not for their own but for the benefit of the whole economy so if they implement or if they require data then I would suggest that you know they also do it in line with the global standards because then it will be easy for all other data users to uh start think about their own use cases how they can reuse the already existing data mhm yeah thank you very much thank you very much katalin thank you very much Ellen for your contribution thank you very much all that Andes yeah for still to the very end and being active so thank you very much and see you next time in September already because I think you all now go to some vacation break and yeah see you See You in September on the webinars and uh on December on the wow Awards thank you and goodbye thanks all bye-bye thank you bye