EU Multi-Stakeholder Forum on e-invoicing – TASK 1

E-invoicing uptake in the EU

EU Multi-Stakeholder Forum on e-invoicing – TASK 1

Pieter Breyne – PwC BelgiumJeroen Verheecke – PwC BelgiumSander Van der Meulen – PwC Belgium

March 2012

E-invoicing uptake in the EUEU Multi-Stakeholder Forum on e-invoicing – TASK 1 2

Agenda

Enterprises sending and/or receiving e-invoices

- General

- Per entity size

- Per entity sector

Invoices sent and/or received

- Per type

- Per commerce transaction

E-invoicing technologies used by enterprises

Drivers and obstacles for e-invoicing adoption by enterprises

Process and controls applied by enterprisesMarch 2012


Enterprises sending and/or receiving e-invoicesEU: Eurostat 2007 - 2010

March 2012

EU (2

7 countri

es)

Euro

area Ita

ly

Lithuan

iaLat

via

Belgium

Estonia

Denmark

Malta

Luxe

mbourg

German

y

France

Finlan

d

Netherl

ands

Slova

kia

Swed

en

Irelan

d

Portuga

l

Bulgaria

Spain

Romania

Austria

Czech Rep

ublic

Poland

Greece

United Kingd

om

Slove

nia

Cypru

s

Hungary

0%

10%

20%

30%

40%

50%

60%

2007 2008 2009 2010

E-invoicing uptake in the EU4EU Multi-Stakeholder Forum on e-invoicing – TASK 1

Enterprises sending and/or receiving e-invoicesEU: Eurostat 2010

March 2012

Leaders (> 40%)

Average (20 – 40 %)

Laggards (< 20%)

N/A



Increasing use of e-invoicing across Europe (only few exceptions)

The data is NOT comparable to the data available for 2011, due to the use of different variables:

- 2010: sending and/or receiving all types of e-invoices

- 2011: sending and/or receiving only in a standard structure

Large differences within EU-countries with Italy, Lithuania and Latvia as leading countries

Euro area ahead of EU 27

March 2012


Enterprises sending and/or receiving e-invoices EU: Eurostat 2011

March 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

Enterprises sending e-invoices in a standard structure suitable for automatic processingEnterprises sending e-invoices NOT suitable for automatic processing (e.g. emails, email attachement in PDF format)Enterprises receiving e-invoices in a standard structure suitable for automatic processingEnterprises sending e-invoices (suitable OR NOT for automatic processing)Enterprises sending / receiving e-invoices in a standard structure suitable for automatic processing



Large differences within EU-countries

More structured e-invoices are received than sent (only few exceptions)

More unstructured e-invoices are sent than structured ones

Finland is well ahead, while Hungary is clearly running behind

Remarks:

The data does not include the financial sector

Data for the following variables are not available:

- Enterprises receiving e-invoices NOT suitable for automatic processing is lacking

- Enterprises receiving e-invoices (suitable OR NOT for automatic processing)

March 2012


Enterprises sending and/or receiving e-invoices per entity size EU: Eurostat 2011

March 2012

All enterprises (>= 10 empl)

SE (10-49 empl)

ME (50-249 empl)

LE (>= 250 empl)

SMEs (10-249 empl)

0% 10% 20% 30% 40% 50% 60% 70%

Enterprises sending / receiving e-invoices in a standard structure suitable for automatic processingEnterprises sending e-invoices (suitable OR NOT for automatic processing)Enterprises receiving e-invoices in a standard structure suitable for automatic processingEnterprises sending e-invoices NOT suitable for automatic processingEnterprises sending e-invoices in a standard structure suitable for automatic processing


Enterprises sending / receiving e-invoices per entity sizeSpain: E-invoicing dissemination plan 2011

March 2012

Total

SE (10 - 49 empl)

ME (50 - 249 empl)

LE (>= 250 empl)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Enterprises receiving electronic invoices in standard format enabling automatic processingEnterprises sending electronic invoices in a format not suitable for automatic processingEnterprises sending electronic invoices in a standard format suitable for automatic processingEnterprises sending electronic invoices


Enterprises sending / receiving e-invoices per entity sizePoland: Central Statistical Office 2010

March 2012

Total

SE (10-49 empl)

ME (50-249 empl)

LE (>= 250 empl)

0% 5% 10% 15% 20% 25%

# enterprises receiving e-invoices # enterprises sending e-invoices


Enterprises sending and/or receiving e-invoices per entity size

Use of e-invoices (structured or not structured) sent and received increases with entity size (EU-wide)

Similar results are applicable for PL & ES data, although small enterprises send little more non-structured e-invoices than larger companies in ES

Remarks:

The data does not include the financial sector

Data for the following variables are not available:

- Enterprises receiving e-invoices NOT suitable for automatic processing is lacking

- Enterprises receiving e-invoices (suitable OR NOT for automatic processing)

March 2012


Enterprises sending vs. receiving e-invoicesEurope: Itella 2010

March 2012

United Kingd

omEst

onia

Denmark

German

y

Austria

Finlan

dLat

via

Lithuan

ia

Hungary

Romania

Russia

Czech Rep

ublic

Norway

Swed

en

Slova

kia

Poland

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

# of enterprises sending electronic invoices # of enterprises receiving electronic invoices


Enterprises sending e-invoicesEurope: Itella 2010 & Eurostat 2011

March 2012

United Kingd

omEst

onia

Denmark

German

y

Austria

Finlan

dLat

via

Lithuan

ia

Hungary

Romania

Russia

Czech Rep

ublic

Norway

Swed

en

Slova

kia

Poland

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Itella (2010) Eurostat (2011)


Enterprises sending (vs. receiving) e-invoices

More e-invoices are received than sent in 2010 (only few exceptions)

When comparing Eurostat 2011 with Itella 2010 data:

- Only invoices sent (all types) could be compared, because of missing variable in Eurostat 2011 data

- Comparison not reliable because of large differences with previously mentioned conclusions, possibly due to:

• Different sample / sampling method

• Description of data not fully clear in Itella 2010 data

Remark:

Only data of 14 EU-countries (+ Russia and Norway) is availableMarch 2012


Enterprises sending and/or receiving e-invoices per sector EU: Eurostat 2011

March 2012

Real estate activitiesAccommodation and Food and beverage service activities

Activities for rental and leasing, employment, security & investigation , services to build-ings &landscape, office administrative, office support & other business support

Manufacture of textiles, wearing apparel, leather and related productsAdministrative and support service activities

ConstructionManufacture of computer, electronic and optical products

Professional, scientific and technical activitiesManufacture of furniture and other manufacturing; repair and installation of machinery

and equipmentManufacture of electrical equipment, machinery and equipment n.e.c.

Manufacture of computers, electric & optical products, electrical equipment, machinery & equipment n.e.c, motor vehicles, other transport equipment, furniture, other manufac-

turing, repair & installation of machinery & equipment (10 persons employed or m

Retail trade, except of motor vehicles and motorcyclesManufacture of wood & products of wood & cork, except furniture; articles of straw & plaiting materials; paper & paper products; printing & reproduction of recorded media

Manufacture of products based on: food, beverages, tobacco, textile, leather, wood, pulp and paper; publishing and printing

Manufacture of coke, refined petroleum, chemical & basic pharmaceutical products, rubber & plastics, other non-metallic mineral products

Manufacture of basic metals & fabricated metal products excluding machines & equipments

Publishing activities; motion picture, video & television programme production, sound recording & music publishing; programming & broadcasting

AccommodationTransportation and storage

Electricity, gas, steam, air conditioning and water supplyComputer programming, consultancy and related activities, information service activities

Information and communicationManufacture of beverages, food and tobacco products

Manufacture of motor vehicles, trailers and semi-trailers, other transport equipmentWholesale and retail trade; repair of motor vehicles and motorcycles

Repair of computers and communication equipmentTravel agency; tour operator reservation service and related activities

Wholesale trade, except of motor vehicles and motorcyclesTrade of motor vehicles and motorcycles

Telecommunications

0% 5% 10% 15% 20% 25% 30% 35%


Enterprises sending and/or receiving e-invoices per sector

Only small spread between different sectors, however:

- Mapping done based on activities (that are often overlapping and too detailed) rather than sectors

- Not all sectors are covered

March 2012


Invoices sent by enterprises per type Europe: Itella 2010

March 2012

Austria

Czech Rep

ublic

Denmark

Estonia

Finlan

d

German

y

Hungary

Latvia

Lithuan

ia

Norway

Poland

Romania

Russia

Slova

kia

Swed

en

United Kingd

omTo

tal0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

In-house Print Outsourced Print Email Fully Electronic


Invoices received by enterprises per type Europe: Itella 2010

March 2012

Austria

Czech Rep

ublic

Denmark

Estonia

Finlan

d

German

y

Hungary

Latvia

Lithuan

ia

Norway

Poland

Romania

Russia

Slova

kia

Swed

en

United Kingd

omTo

tal0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Paper process Paper scanned for e-process Email Fully Electronic


Invoices sent and received by enterprises per type

Majority of invoices are still sent and received on paper

Very small share of invoices is fully electronic or sent via e-mail (EU-wide)

Remark:

Only data of 14 EU-countries (+ Russia and Norway) is available

March 2012


E-invoices sent by enterprises per commerce transactionEU: Factuurmonitor 2008

March 2012

B2G B2C B2B0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total Micro (1-9) Small (10-49) Medium (50-249) Large


Invoices sent per commerce transactionDenmark: Interoperability of e-invoicing 2007

March 2012

B2B B2B foreign B2G B2C0%

10%

20%

30%

40%

50%

60%

70%

2007


E-invoices sent by enterprises per commerce transaction

Use of sent e-invoices increases with entity size

No significant differences (EU-wide) between commerce transactions (B2B / B2C / B2G)

However, in DK the large majority of enterprises sending e-invoices operate in the B2B segment

March 2012


E-invoicing technologies used by enterprisesEU: PwC Study 2005 & 2009

March 2012

don't know

supplier e-Invoicing portal

email (pdf)

scanning

qualified electronic signatures

advanced electronic signatures

electronic bill presentment and payment (EBPP)

electronic invoice presentment and payment

EDI

0% 10% 20% 30% 40% 50% 60% 70% 80%

implemented (2009)implemented (2005)


E-invoicing technologies used by enterprisesEU: PwC Study 2005 & 2009

March 2012

don't know

supplier e-Invoicing portal

email (pdf)

scanning

qualified electronic signatures

advanced electronic signatures

electronic bill presentment and payment (EBPP)

electronic invoice presentment and payment

EDI

0% 10% 20% 30% 40% 50% 60% 70% 80%

will implement before 2013will implement before 2011


E-invoicing technologies used by enterprises The Netherlands: Factuurmonitor 2008 & 2010

March 2012

email EDI webportal online banking0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2008 2010


Format of e-invoices used by enterprisesThe Netherlands: Factuurmonitor 2008

March 2012

PDF EDI XML HTML Excel Word0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2008


Format of e-invoices sent vs. received by enterprisesCzech Republic: Czech Statistical Office 2011

March 2012

PDF XML, etc. EDIFACT0%

10%

20%

30%

40%

50%

60%

70%

Issuer Recipient


Format of e-invoices sent vs. received by enterprises Austria: Billentis 2011

March 2012

PDF

Web

XML/EDI

0 10 20 30 40 50 60 70 80

Large (250+) Medium (50-249) Small (10-49)

PDF

Web

XML/EDI

0 10 20 30 40 50 60 70 80

Large (250+) Medium (50-249) Small (10-49)


E-invoicing technologies used by enterprises

The top technologies used (EU-wide) are:

- E-mail (pdf-form)

- Scanning (of paper invoices)

- EDI

Another important technology used is electronic bill (B2C) & invoice (B2B) presentment and payment

Trends:

- Electronic invoice presentment & payment and scanning increases, while EDI decreases from 2005 to 2009

- No data available to analyse the use of e-mail from 2005 to 2009

- Small differences in technologies used from 2008 to 2010 in NL. March 2012


E-invoicing technologies

No clear winner for future e-invoicing technologies

The data related to used technologies is difficult to compare due to:

- Other country-specific data; e.g. split of sent vs. received e-invoices (AT)

- Other variables for used technologies, meaning more generic (country-specific) vs. more specific (EU-wide); e.g. portals

- No clear distinction in channels and formats

March 2012


Drivers for e-invoicing adoption by enterprisesEU: PwC Study 2005 & 2009

March 2012

Increase

d efficie

ncy

cost

reducti

on

faster

custo

mer pay

ments

less c

ustomer/

supplie

r disp

utes

custo

mer pref

erence

supplie

r pref

erence

increase

d accu

racy

staff re

duction

impro

ved se

curit

y

better

contro

l and co

mmunication

envir

onmental

benefi

ts

automate

d matc

hing

increase

d tran

spare

ncy

tax effi

ciency

othernone

don't know

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2009


Drivers for e-invoicing adoption by enterprises(issuer vs. recipient)Austria: e-Rechnung – WKO 2011

March 2012

Savings Efficiency increase

Faster payment by customers

Customer need Less customer/supplier disputes

Seller demand Other No use0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Issuer Recipient


Drivers for e-invoicing adoption by enterprises

The Netherlands: Factuurmonitor 2008 & 2010

March 2012

Savin

gs iss

uer

Customer

wish

Get paid

sooner

Savin

gs rec

epien

t

Customer

deman

d

Impro

ve w

orking c

apita

l

Maintai

n position

More tra

ffic to w

ebsit

e

More sal

es options

Customer

loyalty

0%

5%

10%

15%

20%

25%

30%

2008 2010


Drivers for e-invoicing adoption by enterprises

The top 3 drivers for e-invoicing adoption in EU countries are:

- Cost savings

- Efficiency increase

- Faster payment

Another important driver could be customer and supplier preferences

No clear trend between 2008 and 2010 data

EU-wide data is similar to data from Austria and The Netherlands

March 2012


Obstacles for e-invoicing adoption by enterprises EU: PwC Study 2005 & 2009

March 2012

don't know

other

reliab

ility o

f the s

ystem

regulati

on/legis

lation/d

ealin

g with

tax a

uthorities

supplie

r compati

bility/r

eadiness

custo

mer co

mpatibilit

y/rea

diness

readiness

/compati

bility o

f inter

nal sys

tems

concer

ns ove

r retu

rn on in

vestm

ent

expen

sive/h

igh in

vestm

ent r

equire

d

complex

ity

system

faults

fraud

securit

y

implem

enati

on problem

snone

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2005 2009


Obstacles for e-invoicing adoption by enterprises The Netherlands: Factuurmonitor 2008 & 2010

March 2012

No custo

mer acc

eptati

on

Complexity

Unclear

legisla

tion

No stan

dards

Organisa

tion size (

small

)

No contro

l invo

ice

Add attach

ments/

speci

fications

Different IC

T pack

ages

Control o

ver in

voicin

g

No recep

tion feed

back

Guarantee

confiden

tiality

Big inve

stmen

t

Insufficie

nt retu

rn

Depen

dent o

n 3rd parti

es0%

5%

10%

15%

20%

25%

2008 2010


Obstacles for e-invoicing adoption by enterprises

The main obstacles for e-invoicing adoption in EU countries are:

- Customer and supplier readiness / acceptation

- Complexity / readiness of internal systems

- High investment

Importance of following obstacles has doubled from 2005 to 2009:

- Unclear regulation / legislation

- Supplier readiness

EU-wide data is similar to data from The Netherlands, although other options are given

March 2012


Process and controls applied by enterprisesEU: PwC Study 2005 & 2009

March 2012

exch

ange

of ord

ers or d

elive

ry notes

via E

DI

custo

mer e-I

nvoicin

g agre

emen

ts

supplie

r e-In

voicin

g agre

emen

ts

paralle

l exch

ange

of pap

er invo

ices

automate

d matc

hing

automate

d appro

vals

interco

mpany e

-Invo

icing a

greem

ents

don't know

0%

10%

20%

30%

40%

50%

60%

2005 2009


Process and controls applied by enterprises

Reduction in exchange of orders or delivery notes via EDI is shown

Increase in parallel exchange of paper invoices between 2005 and 2009

Figures on other process and controls applied by enterprises in 2005 and 2009 are almost identical

March 2012


Conclusion

Analysis of the data:

- Increasing use of e-invoicing EU-wide with large differences between countries, although the majority of invoices is still on paper

- More unstructured e-invoices than structured ones

- The main drivers for e-invoicing adoption are cost savings, efficiency increase and faster payment, while important obstacles are the complexity, acceptation and high investment

Data collection:

- Different and incomplete data available country-specific vs EU-wide (not comparable)

- Data too much focused on use of e-invoicing (not on e-invoices)

Collect data centralised + decide on what to collect

March 2012


Conclusion of our break-out

Preferred option – Ask Eurostat (on yearly basis – at least till 2020)

Alternatives (can be in parallel with preferred option)

Option 1 – Ask via the national fora

Standard questionnaire (Eurostat + other questions)

Option 2 – Ask an external party to run a yearly surveyMarch 2012

Sending Receiving

Total number of invoices Number Number

Electronic – structured % %

Electronic – unstructured % %

Paper form % %


Conclusion of our break-out

Activities for Activity 1

Coordinate with Eurostat

Create a standard questionnaire

Continue to collect information from national fora and international studies

Continue to analyse gathered information (deadline September 2012 for first comprehensive monitoring analysis)

March 2012


Appendix – Inventory of available data sources

EU/Europe-wide data sources:

Eurostat, 2007 – 2011

Itella, 2011

PwC Study, 2005 & 2009

Factuurmonitor, 2008

March 2012


Appendix – Inventory of available data sources

Country-specific data sources:

The Netherlands: Factuurmonitor, 2008 & 2010

Spain: E-invoicing dissemination plan, 2011

Poland: Central Statistical Office, 2010

Denmark: Interoperability of e-invoicing, 2007

Austria: e-Rechnung – WKO, 2011 & Billentis, 2011

Czech Republic: Czech Statistical Office, 2011

March 2012

Documents

EU Multi-Stakeholder Forum on e-invoicing – TASK 1