Electronic invoicing: why should you get familiar with it?
Posted: Mon Jan 06, 2025 8:32 am
Thanks to digitalisation, we have managed to drastically transform and optimise many of the procedures in the business field. The next step will be to universalise electronic invoicing in all commercial relations.
Although it is still an unresolved issue for many companies and self-employed workers in our country, the administrations are clear that the digitalisation of invoicing is the way forward to evolve as a society and fight against late payment and tax fraud.
In this article we explain what electronic invoicing is, what advantages it offers you and why it is important for you to start familiarizing yourself with it.
What is electronic invoicing?
Electronic invoicing is nothing more than the digitalization of invoices that companies or self-employed workers send to collect payment for products or services provided. Thus, an malaysia number data electronic invoice, like a paper invoice, serves to justify certain commercial or financial transactions .
That is to say, the concept of an invoice does not change and it has the same legal effects, but the format in which it is issued and received is electronic. However, its issuance is subject to the consent of its recipient, which is not the case with traditional paper invoices.
Where does electronic invoicing come from?
In 2014, the European Union promoted the implementation of electronic invoicing in its member states and in 2019 established a common mandatory format in European B2G relations .
Since then, digitalisation in invoicing has been gaining ground and there are now many countries in which electronic invoices are mandatory in commercial exchanges with the public sector . In Spain, electronic invoicing became mandatory in January 2015 for all suppliers of the public administration whose invoices exceed 5,000 euros.
As a result, all companies that have commercial relations with public administrations have had to adapt to the new model and send their invoices through a structured format known as Facturae . Although for now this obligation only affects this type of operations, it is expected that it will eventually be imposed for B2B relations as well.
What are electronic invoices for?
The reason why public administrations and some companies are already opting for electronic invoicing is that it offers many advantages over the traditional invoicing system, which will soon become obsolete. These are some of the benefits of its use:
Economic savings.
Shorter processing cycles.
Lower probability of fraud.
Less environmental impact.
Reduction of human errors.
Saving storage space.
Quick and easy access.
Greater shipping security.
These advantages are clear evidence that electronic invoicing is here to stay and will mark a before and after in the day-to-day life of companies. However, it also has certain disadvantages , starting with the requirement for companies and self-employed people to obtain an invoicing program, with the consequent cost and learning process.
Electronic billing
Elements that the electronic invoice must have
Electronic invoices must include all the necessary information regarding the transaction carried out , as well as the data of both parties. In other words, they must contain the same data required in traditional paper invoices, regulated by Royal Decree 1619/2012, of November 30. This is:
Invoice number and series (if applicable).
Identification data of the sender and the receiver.
NIF of the issuer and the receiver.
Issue date.
Date of provision of services.
Concept or description of operations.
Tax base (price of operations excluding taxes).
Tax rate and applicable taxes.
According to a Holded study, 86% of respondents are unaware of the Create and Grow law.
Laws and regulations governing electronic invoices:
The aforementioned Royal Decree establishes compliance with certain requirements that guarantee the legibility, authenticity and integrity of invoices. In the case of electronic invoices, the readability of the document is facilitated by the computer program with which it is created or received.
On the other hand, authenticity and integrity can be guaranteed through different methods, such as electronic signature with electronic certificate or electronic data interchange EDI , among others.
In addition, for electronic invoicing to be legal, other specific requirements will be required from 2024 or 2025. The main ones are the following.
Although it is still an unresolved issue for many companies and self-employed workers in our country, the administrations are clear that the digitalisation of invoicing is the way forward to evolve as a society and fight against late payment and tax fraud.
In this article we explain what electronic invoicing is, what advantages it offers you and why it is important for you to start familiarizing yourself with it.
What is electronic invoicing?
Electronic invoicing is nothing more than the digitalization of invoices that companies or self-employed workers send to collect payment for products or services provided. Thus, an malaysia number data electronic invoice, like a paper invoice, serves to justify certain commercial or financial transactions .
That is to say, the concept of an invoice does not change and it has the same legal effects, but the format in which it is issued and received is electronic. However, its issuance is subject to the consent of its recipient, which is not the case with traditional paper invoices.
Where does electronic invoicing come from?
In 2014, the European Union promoted the implementation of electronic invoicing in its member states and in 2019 established a common mandatory format in European B2G relations .
Since then, digitalisation in invoicing has been gaining ground and there are now many countries in which electronic invoices are mandatory in commercial exchanges with the public sector . In Spain, electronic invoicing became mandatory in January 2015 for all suppliers of the public administration whose invoices exceed 5,000 euros.
As a result, all companies that have commercial relations with public administrations have had to adapt to the new model and send their invoices through a structured format known as Facturae . Although for now this obligation only affects this type of operations, it is expected that it will eventually be imposed for B2B relations as well.
What are electronic invoices for?
The reason why public administrations and some companies are already opting for electronic invoicing is that it offers many advantages over the traditional invoicing system, which will soon become obsolete. These are some of the benefits of its use:
Economic savings.
Shorter processing cycles.
Lower probability of fraud.
Less environmental impact.
Reduction of human errors.
Saving storage space.
Quick and easy access.
Greater shipping security.
These advantages are clear evidence that electronic invoicing is here to stay and will mark a before and after in the day-to-day life of companies. However, it also has certain disadvantages , starting with the requirement for companies and self-employed people to obtain an invoicing program, with the consequent cost and learning process.
Electronic billing
Elements that the electronic invoice must have
Electronic invoices must include all the necessary information regarding the transaction carried out , as well as the data of both parties. In other words, they must contain the same data required in traditional paper invoices, regulated by Royal Decree 1619/2012, of November 30. This is:
Invoice number and series (if applicable).
Identification data of the sender and the receiver.
NIF of the issuer and the receiver.
Issue date.
Date of provision of services.
Concept or description of operations.
Tax base (price of operations excluding taxes).
Tax rate and applicable taxes.
According to a Holded study, 86% of respondents are unaware of the Create and Grow law.
Laws and regulations governing electronic invoices:
The aforementioned Royal Decree establishes compliance with certain requirements that guarantee the legibility, authenticity and integrity of invoices. In the case of electronic invoices, the readability of the document is facilitated by the computer program with which it is created or received.
On the other hand, authenticity and integrity can be guaranteed through different methods, such as electronic signature with electronic certificate or electronic data interchange EDI , among others.
In addition, for electronic invoicing to be legal, other specific requirements will be required from 2024 or 2025. The main ones are the following.