Electronic invoicing

FacturaE is the standard format in which the electronic invoicing law stipulates that these types of documents must be produced. In other words, in practice, any invoice created and sent electronically is an electronic invoice, but the tax authorities chose FacturaE as the format that everyone must use when sending electronic invoices to them.

These are some of the characteristics that define the FacturaE format:

• This is a text file. It is responsible for defining the fields in invoices according to the XML format..

• Electronic invoices do not generally need to be accompanied by a digital signature. In this case, they will be in the aforementioned XML format.

• However, invoices issued by the public administration do require this electronic signature. In this case, the format of these documents will be XSIG, which is exactly the same as the electronic invoice in XML, but accompanied by the necessary digital signature.

Unlike traditional types of invoices, which are subdivided into more than half a dozen categories, electronic invoices are somewhat easier to classify. It is as simple as determining whether they are structured or not, but we will explain exactly what this concept means and why it is important.

• Structured invoices are those that are issued in a specific format, and by this we do not mean whether or not they include certain information. We are referring to the fact that both the computer software used by the issuer of the electronic invoice and by the recipient are designed to facilitate the flow of sending and receiving invoices, as well as their management.

• Unstructured invoices do not use a standardised format such as XML. In this case, they can be created in Word, Excel, or an invoicing programme that exports them to PDF. These electronic invoices require human intervention to be entered into the various invoicing programmes.

KEY FACT: Although the vast majority of electronic invoices issued today are unstructured, the undeniable advance of digital transformation will make it increasingly common to need appropriate software to send and receive structured invoices.

Despite the only disadvantage we can find with electronic invoicing, which is not keeping up to date and therefore falling behind in an increasingly competitive business world, this new way of doing things brings a multitude of benefits for any company.

Electronic invoicing is quick, easy to manage and locate, and saves time and money, but let’s take a closer look at its main advantages:

• Electronic invoicing is more efficient. It cannot be misplaced, misfiled or forgotten, and it is accessible at any time, from anywhere in the world.

• This invoicing method minimises the polluting effects of this activity. Not a single gram of paper is used; it operates solely on electricity, which can be generated in a 100% clean manner through the use of renewable energies.

• Electronic invoicing is cheaper than traditional invoicing. There are no costs for paper, ink, printers or photocopiers. Nor is there any need to look for storage solutions beyond a hard drive with sufficient capacity, or even that, because you can use cloud storage methods!

• The automation enabled by digital invoicing, as well as its easy integration with the various management applications used by companies, saves time and money. The time not spent on administrative tasks can be devoted to other more productive activities.

• Furthermore, electronic invoicing greatly facilitates any company’s cash flow planning. The integration of these documents in real time means that you know at all times how much money you have, how much you owe and what the next steps might be, without any fear of making mistakes.

• Errors by administrative staff, which tend to be quite costly, are virtually eliminated.

The evolution that electronic invoicing has brought about for companies that have decided to adopt it has been impressive. The good news? There is still time to adapt to it and jump on the digital transformation bandwagon. It is always better to embrace these types of changes by choice rather than by obligation—that is the difference between success and failure!

We have already mentioned throughout this text that, in order to be valid, an electronic invoice must contain the same information as a traditional invoice; this does not change in the digital world.

Therefore, all electronic invoices must include the following fields:

• Numbering
• Date of issue
• Tax details of the issuer
• Customer tax details
• Concept
• Tax rate
• Information from the Commercial Registry (for companies only)

However, the fact that we are talking about a digital document means that it must also meet a series of requirements for the electronic invoice to be valid in the eyes of the law.

• The first requirement for an electronic invoice to be valid is that both the issuance and receipt of this invoice must be carried out using electronic devices.

• Furthermore, it goes without saying that the parties involved must have agreed in advance that this will be the channel through which such invoices will be communicated.

• Electronic invoices, like printed invoices, must be recorded in the management systems used by the companies involved in their use.

• The format of the digital invoice must also be agreed upon by both parties. The public administration uses FacturaE (XML or XSIG, depending on whether it bears an electronic signature), while other organisations usually opt for PDF.