Introduction of e-invoicing (Part 2)

In the previous part of our newsletter, we summarised the key facts about e-invoicing. Today's newsletter discusses the benefits of e-invoicing.

Today, the difference between paper and electronic invoices is not only in the way they are issued. While a paper invoice is an accounting document only when printed out on paper, an electronic invoice has the force of an accounting document only when it is digital and in the form of a file. In both cases, the invoicing process is the same.

Issuing and receiving an electronic invoice has many advantages over paper invoicing. Below we have listed some of the advantages that often lead companies to opt for a paperless invoice.

Benefits for the issuer:

• issuing an e-invoice is simple, and doesn’t differ from traditional methods;
• sending e-invoices to customers by e-mail is faster and more reliable than by post;
• e-invoice provides the company with the possibility to:

• reduce administration, because the sending process can be automated and only the customer's e-mail address is needed;
• reduce postage costs: the invoice is sent electronically to the customer in pdf or XML format;

Ø reduce printing costs (paper and printer purchase, printer maintenance, ink cartridge replacement).

• the customer receives the invoice immediately and can communicate any remarks or objections sooner;
• the invoice can be paid sooner, because it reaches the customer sooner;
• e-invoices are easier to retrieve, store and process.

Benefits for the recipient:

• e-invoice is cost-effective, as there is no need to rent warehouse space for storage of office documents or shred expired documents;
• e-invoice reduces administration, as there is no need to file, file and book invoices on paper;
• accountants prefer it because incoming invoices that come in electronically can be processed and booked automatically, whether they are issued in pdf or XML format;
• receiving e-invoices speeds up the invoice processing process. This ensures that a company can have a more accurate picture of its cash flow situation.

Our e-invoicing services:

If your company is planning to migrate to the XML-based or other e-invoicing formats supported by the NAV in the near future, the VGD's team of experts is ready to assist you with the following services:

• Pre-implementation advising;
• Advice on setting up a new system;
• Audit of the existing system to assess compliance with the legal requirements in force;
• Advice on the detailed rules of the NAV XML-based e-invoicing, and design of such system;
• Reviewing the NAV XML file, checking its completeness, interpreting the error messages received and suggesting improvements;
• Review existing XML file structure to determine legal compliance;
• Implementation of e-invoicing and related automation and IT services.

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Should you have any questions regarding this newsletter,
the tax & accounting experts of VGD Hungary will be pleased to assist you.

This newsletter provides general information and does not constitute tax advice.