SMEs and micro-enterprises: electronic invoicing in public contracts

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If, until now, they may not have been prepared to respond to this obligation in public contracts, by the end of 2022 they will have to prepare their systems to implement electronic invoicing in their businesses, which comes into force in January 2023 for all micro-enterprises and SMEs that supply the State.

It was Government Decree-Law No. 28/2019 that paved the way for the definitive end of paper invoices, a measure that, in addition to driving significant savings on paper, represents a guaranteed reduction in bureaucracy, an increase in the speed and agility of sending invoices and an increase in the fight against tax evasion. However, it was Decree-Law No. 104/2021 that dictated the legal obligation to adopt electronic invoicing for suppliers and the public administration.

What are the deadlines for implementing electronic invoicing in public contracts?
The implementation of this new process was israel whatsapp number database by Decree-Law No. 123/2018 , with the final phase scheduled for December 2020, but the contingency caused by the COVID-19 pandemic forced an extension of the stipulated deadline.

Therefore, the State has defined new dates for companies to start using electronic invoicing in public contracts.

With this extension of the deadline, the new schedule is now:

Since January 1, 2021 , the requirement for electronic invoicing in public contracts for large companies came into force (companies that meet at least one of these three conditions: more than 250 employees, more than €50M in turnover or €43M in balance).

By 1 January 2023 , the requirement for electronic invoicing will come into force for Small and Medium-sized Enterprises supplying the State, for micro-enterprises also supplying the public sector, as well as for public entities as co-contracting entities.
With this extension of the deadlines for implementing electronic invoicing, companies gain greater scope to prepare for the new reality of public contracts, thus allowing them to focus their efforts on the necessary economic recovery, due to the times of uncertainty that have plagued the business world.

State supplier companies have already embarked on the innovation path
With digital transformation increasingly affecting companies, the State has also embarked on a path of innovation and dematerialization by digitalizing some of its processes. And one of the most significant projects, which has marked both the State's activity and the companies that have a relationship with it, is, without a doubt, the mandatory electronic invoicing in public contracts .

But what is an electronic invoice?
According to the definition contained in Directive 2014/55/EU , which determines the mandatory nature of electronic invoicing in public contracts, an electronic invoice is an invoice "that has been issued, transmitted or received in a structured electronic format that allows its automatic and electronic processing ".

In practice, an electronic invoice is a document equivalent to a traditional paper invoice, which maintains the same legal value. However, it is processed exclusively in digital format: the issuing, sending, receiving and archiving of invoices is done exclusively electronically.

At the same time, it is important to bear in mind that it is not enough for the invoice to be converted into a PDF file to be considered an electronic invoice – although PDF invoices will still be considered electronic invoices until December 31, 2022. From this date onwards, the implementation of a qualified digital signature is mandatory .

Public contracts: what are the advantages of using electronic invoicing?
With the implementation of mandatory electronic invoicing, there are also advantages that will benefit both the State and companies, both in terms of costs and bureaucracy inherent to the various commercial and operational processes in public contracts. Let's take a look:

Reduced costs on paper, consumables and shipping costs;
Reduction in bureaucracy and time spent sending invoices;
Reduction in errors and greater accuracy of data and information;
Greater agility in organizing, tidying and cataloging documents;
Greater accessibility in consulting invoices by various State entities;
Greater security and confidentiality;
Optimization of administrative efficiency, due to the automation of processes and the elimination of manual, time-consuming and error-prone processing tasks.
Electronic invoice available in PRIMAVERA solutions
The new legal obligation that State suppliers will have to comply with will not imply any changes to PRIMAVERA management solutions , as they have been prepared for the use of electronic invoicing for several years, in accordance with the rules that came into force.

If you are a government supplier and manage your business with PRIMAVERA solutions, we have the tools you need to comply with public procurement legislation. Eliminate administrative burdens and increase productivity with eTransactions - which allows you to receive and send all commercial documents automatically - or with eDocExchange - PRIMAVERA's electronic invoicing and EDI (Electronic Data Interchange) solution, which dematerializes purchasing processes from suppliers and also sends invoices electronically with full guarantees of authenticity and legal validity.

This is PRIMAVERA's commitment: to assist companies in the simple, timely and continuous fulfillment of their organizations' tax obligations.