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We often come across statements that e-invoicing is a domestic issue - the cross border part is so small (some 5%) that we do not really need to care. This is a
false picture as can be arrived at by just looking at the volumes of cross-border trade.
The reason for this misunderstanding is that enterprises have to establish local subsidiaries and thus - from legal and statistical perspectives do only domestic invoicing. From the
operative perspective the picture is often totally different as a single shared service center can handle all invoicing.
For these companies it is very important to move faster to the global ISO20022 standard and harmonise regulations and then not having to support costly country specific practises. Another reason - especially in Europe - is the mandatory migration to SEPA
payments. The ISO20022 e-invoice standard is by design fully compatible with downstream SPEA messages such as Credit Transfer as well as ISO20022 account reporting. This is seldom or never the case with local e-invoicing formats.
A good portion of cross-border B2B payments happens via TARGET2, which uses ISO20022 as well. You can correct me if I am wrong, but I think the SCT alignment benefit you've highlighted is equally applicable for TARGET2 messages. This provides one more reason
why e-invoicing should follow ISO20022 standards.
Chairman/Founding member, board member
Transmeri, Demos, Real Time Economy Program,MyData
04 Nov 2008
11 Nov 2019
This post is from a series of posts in the group:
A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.