On the 1st January 2013, new VAT legislation will theoretically simplify the rules for electronic invoicing, but this is still in draft form. The intent of the new legislation is that paper or electronic invoices have the same treatment leaving to the individual buyers and sellers as to the method used to invoice.

A recent excellent webinar from Bottomline Technologies's Stephen Carter showed what needs to be done to achieve compliance.

Impact of new legislation
You'll need to: re-look at your AP and AR processes to ensure compliance; consider how PDF and other invoices ensure the invoice content cannot be changed; and demonstrate the authenticity of invoice origin. This applies of any invoice paper or electronic.

This is easier said than done.

Controls and systems required
Stephen then demonstrated the business controls needed to build VAT compliance, including how to:

• preserve the integrity of content, including a comprehensive list of the invoice content
• authenticity of origin can be ensured including digital signing of PDFs
• ensuring lifetime integrity of invoice content, including reducing content duplication and creating a full invoice audit history
• avoid re-keying of content.

Benefits of new legislation
Yes, there are some. It offers cost savings by moving from paper to e-invoicing and improves customer relationships and interaction.

---

The new VAT legislation is certainly going to create a bonanza for the e-invoicing suppliers like Bottomline Technologies, but unfortunately, unless they can make inter-change betwen the major e-invoicing platforms really work. This is going to be yet another euro-mess.

How are you going to ensure the new VAT changes in Europe? Will you be compliant by 1st January 2013?