Electronic invoicing in the light of the VAT Directive 2001/115/EC Anna Nordén Conference on the Legal Aspects of an E-Commerce Transaction The Hague 27 October 2004

Council Directive 2001/115/EC amending Directive 77/388/EEC with a view to simplifying, modernizing and harmonizing the conditions laid down for invoicing in respect of value added tax ”The e-Invoicing Directive”

E-invoicing and the Directive Electronic invoices should be accepted by all EU countries from January 2004 Prerequisites: Customer accepts an electronic invoice Certain security requirements in transport and storage are met

Conditions for transfer and storage

Security requirements in the Directive Garantee authenticity of origin and integrity of content of the invoice by Advanced Electronic Signatures (reference to E-Signature Directive 1999/93/EC) EDI with contracted security processes Exceptions Countries may optionally require Qualified Electronic Signatures (reference to E-Signature Directive 1999/93/EC) Countries allowed to accept ”other means” – no cross-border guarantee

EU Member States’ implementations Low level Main level High level

Which law determines the security requirements? EU Commission: sender’s domicile - inbound invoices with ”main level” security should be accepted in all EU countries Some high-level requirement countries may disagree – this creates significant problems/costs for EU companies Companies based in countries with low-level requirements will not automatically get their nationally compliant invoice accepted elsewhere Non-EU companies invoicing to an EU-company likely need to follow each country’s requirements

Cross-reference to E-Signature Directive Advanced and Qualified Electronic Signature within the meaning of the E-Signature Directive Problem: purpose of use of e-signature in the two directives is totally different! E-Signature Directive: replace a handwritten/legal signature E-Invoicing Directive: ensure integrity and authenticity – ”Member states shall not require invoices to be signed” Problem: which definition - E-Signature Directive or national law implementing it? Can a legal person sign an invoice? Is a TTP needed to comply?

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