Two models of e invoicing in Finland

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Two models of e - invoicing in Finland

Keijo Kettunen
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State Treasury

• 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
  governments 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 States insurance
  institution. It promotes risk management in the
  entire central government.

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Key figures

• Invoices in Finland
• B2B 200 million
• B2C 200 million
• E-invoices in Finland
• B2B 9 million. (e-invoices send through 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 bank customers in Finland
  High expectations B2C

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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

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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

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e-invoices, B2B and B2C
Suppliers
Customers
Operators
Banks
237 600 companies in Finland (2005)
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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.

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Governments Strategy

• No selfmade solutions
• 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

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Governments Business Model

• 1 Service provider
• G2B, G2C, B2G
• Both inhouse and standard formats
• Separated contracts with banks

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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

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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

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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

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The share of received E-invoices in Finnish
government
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Questions, comments?keijo.kettunen_at_valtiokonttor
i.fi