The EU directive on e-invoicing law will be reformed as of April 1st, 2020. The purpose of the change is to consolidate e-invoicing and harmonize trading. At FREE! we have been handling e-invoicing since we started our company, making it easier for us to for example keep our records. The e-invoicing low has affected the electronic invoicing of public operators but now it will apply to all business-to-business transactions. We’ve compiled below what you need to know about the law change.
How will it effect?
From the beginning of April, a company is entitled to receive an invoice from another company upon request in an electronic form. The invoice has the right not to pay if the request is not followed. So companies are now urged to switch to electronic invoicing and upgrade their software and Enterprise resource planning to meet the latest e-invoice formats. Also the Finnish state will only receive e-invoices.
Does the legal reform affect your business?
The new e-invoicing law does not effect a company if the turnover is less than 10 000 euros or to company which does only B2C (Business to customers) -trading. Otherwise, small businesses will be subject to the same obligations as the Small and Medium-sized Enterprise.
What is e-invoicing?
An electronic invoice or e-invoice is an invoice that complies with EU standards for e-invoicing. Finnish updated e-invoicing standards TEAPPSXML 3.0 and Finvoice 3.0 are accepted invoicing formats. Invoicing and financial management software vendors will take care of the fact that their products meet the requirements of current legislation. An invoice sent by email is not legal.
Sending or receiving paper invoices is a) time consuming and b) a costly activity. E-invoicing enables secure and faster invoice delivery and is also more cost-effective and eco-friendly. There is more time for business itself and better avoiding of nasty scams.
Got questions about this? Our wonderful customer service team is happy to assist you in all questions related to the law change or any other topic. You can contact us via Chat or by calling 0203 32345.