Two models of e-invoicing in Finland eGovernment Working Group 14.9.2006 Jere Reinikainen 14.9.2006/jr

State Terasury The State Treasury is a service bureau that is run on quality management principles. It operates in three divisions under the Ministry of Finance: Administrative Management serves the State corporation as the financial and personnel administration expert by generating Group-level information on a centralized basis, guiding the production of administrative information and the use of procedures in administration, and by directing the use of purchased services. The Finance division administers the central government’s debt, cash funds, most of the loans and interest-rate subsidies granted from central government funds, and some of the State guarantees. The Insurance division is the State’s insurance institution. It promotes risk management in the entire central government. Lehtikuva Oy

Key figures Invoices in Finland B2B 200 million B2C 200 million E-invoices in Finland B2B 9 milj. (e-invoices send throw banks not included) B2C ? Production just started in one Finnish bank, others to production by the end of the year 2006 3,6 million internet banks in Finland = High expectations B2C 14.9.2006/jr

Key figures - Finnish Government Invoices B2G 2,7 million G2B 1,5 million G2C 11,7 million e-invoices B2G 18% G2B Potential 40 % G2C Potential 40 % 89 % of invoices are sent to Consumers 14.9.2006/jr

Two models of e-invoicing? Several Standars: Finvoice, eInvoice, TeappsXML… Standards are developed by: Finvoice developed by the Finnish bank association Other standards developed by service providers One of the reasons for two models in e-invoicing 14.9.2006/jr

MAINSTREAM e-invoices, B2B and B2C Suppliers Customers Large 2 % Medium-sized 1,6 % Small 96,4 % Private persons Large companies Medium-sized Small Service providers MAINSTREAM Banks 14.9.2006/jr 237 600 companies in Finland (2005)

Cooperation in Finland – eInvoice Forum TIEKE Finnish Information Society Development Centre Technical work group (operators and banks) Software work group (software providers) User work group e-invoicing summits Suppliers, banks, operators, software providers, public administration There is no mandatory legislation for e-invoicing in Finland. Markets and Cooperation of different parties determine the overall structure of business. 14.9.2006/jr

Governments Strategy No selfmade solutions Aim to be the Market Leader Only Off-the-self software solutions and services used Aim to be the Market Leader Active cooperation to enhance the use of e-invoice No mandatory legislation Legislation has supporting role 14.9.2006/jr

Governments Business Model 1 Service provider G2B, G2C, B2G Both inhouse and ”standard” formats Separated contracts with banks 14.9.2006/jr

Public administration Recommendation (JHS) JHS 155 Utilisation of electronic invoices in public administration No email invoices Finvoice or eInvoice Recommendation to increase the use of electronic invoices Guidelines to processes 14.9.2006/jr

Northern European Subset (NES) Participants: Denmark, Sweden, Norway, Iceland, UK, Finland Objectives: Define common UBL 2.0 based standard for E-invoicing and E-purchasing used in both domestic and cross-border trade between the participating countries. Harmonization of UBL and UNCefact 14.9.2006/jr

Next in Finland… e-invoices to consumers No expenses 3,6 million netbank customers Services are available to all-sized parties Enhanced cooperation between the banks and the operators  Partnership  Synergy Enhanced use of electronic information 14.9.2006/jr

The share of received E-invoices in Finnish government 14.9.2006/jr

Questions, comments? jere.reinikainen@valtiokonttori.fi 14.9.2006/jr