Ardent’s FinTech Influencer Series highlights innovative voices in the world of ePayables automation. This series is the go-to spot for progressive thoughts on how technology, transformational thinking, and revolutionary ideas are changing how AP work gets done. Continuing our FinTech Influencer Series, today we are speaking with Ivo Moszynski, Chair of FeRD (German Forum for Electronic Invoicing).
Ardent Partners: Welcome Ivo and thank you for spending some time with me today. Let’s get started. For our readers who may not be familiar with FeRD (the German Forum for Electronic Invoicing), can you please provide an overview of the organization, the reason it was created, as well its goals and objectives and the progress and successes so far.
Ivo Moszynski: The Forum Electronic Invoice Germany was founded in March 2010 with the aim of being the national platform of associations, ministries and companies for the promotion of electronic invoicing in Germany. The work of the Forum is intended to further increase the acceptance and dissemination of electronic invoices in Germany. FeRD paves the way for electronic invoices from a technical, business, economic and legal point of view, and prepare, coordinate, and implement suitable measures for the rapid and simple use of electronic invoices.
The progress of FeRD is reflected in the digital Franco-German cooperation in the field of e-invoicing with the partner countries focused on developing a common technical standard: the electronic invoice standard “ZUGFeRD/Factur-X”. This standard is intended to meet the needs of small and medium-sized enterprises regarding e-invoicing. It is the equivalent to the already established Franco-German development of the hybrid invoice format ZUGFeRD/ Factur-X. FeRD and FNFE-MPE have published Order-X, which is based on the same data model and thus enables a continuous workflow from order creation to invoicing. Both FeRD and FNFE-MPE will continue to work on the standardization of other parts of the supply chain.
Ardent: Please tell me about your role and responsibilities as Chair of the FeRD? How long have you held the position and what is on your agenda?
IM: For many years I have been dealing with the requirements of electronic communication and in particular with the topic of electronic invoicing, and since 2018 as head of FeRD. As the main contact person and head of the FeRD, I have the task of actively promoting e-invoicing in Germany and providing answers to internal and external questions about the challenges of implementing e-invoicing. We have many important tasks still ahead of us.
The establishment of a central reporting system for electronic invoices in Germany will certainly be a core issue, especially because not only technical, but above all legal and procedural questions need to be clarified.
In my view, the second major topic is the further development of digital processes along the procurement process (or supply chain).
The FeRD will continue to be the neutral platform for business, administration, politics and service providers for the further development of electronic invoicing in Germany. Through this interdisciplinary cooperation, we are optimally positioned in the FeRD.
Ardent: What is the current situation regarding E-Invoicing in Germany?
IM: Currently, we have a rate of 34% e-invoices in Germany. However, the majority of these are classic EDI invoices and PDF invoices in the B2B sector. Although ZUGFeRD and xRechnungen are becoming increasingly popular as versions of EN16931, they are not yet used by the majority of companies. In Germany, almost all public contractors are obliged to receive electronic invoices that comply with the European standard EN16931. At the federal level, all contractors are required to submit electronic invoices, as well as in some federal states, but there is no general requirement for contractors to submit electronic invoices. Furthermore, there is no mandate to exchange electronic invoices in a B2B scenario.
Ardent: When do you expect a German B2B mandate and which exchange model is leading in the debates?
IM: The German government has not yet announced any details. As far as we know, the government is currently waiting for a legislative proposal from the European Commission. That being said, there are already different models in use in Europe. The different approaches will be evaluated and then it will be decided which approach is the right one. Derivations and adaptions from the existing models are necessary to make the system suitable for Germany.
Ardent: What role do the needs of SMEs play in the development of the German B2B mandate? How are their specific requirements and situation taken into account?
IM: We have about 3.5 million companies in Germany, of which 3.1 million have up to 9 employees. That means that SMEs play a very important role when developing a German B2B mandate. They are the ones not having the resources to develop their own (software) solution and mostly rely on service providers. For the (success of the) German B2B mandate it is important that any approach is easy to use and does not cause unnecessary costs and expenses.
Ardent: Can you provide me with an update on the cooperation between VeR (the German E-Invoicing Association) and EESPA (the European E-Invoicing Service Providers Association).
IM: In recent years, VeR has focused strongly on the national challenges on the topic of e-invoicing. With the implementation of the EU Directive 2014/55, the associated introduction of EN16931 and the current discussions on the introduction of CTC systems to combat VAT fraud, international aspects are becoming increasingly important. As a consequence, we as VeR have decided to cooperate with EESPA. This ensures a better exchange of information and gives German service providers and experts the opportunity to further develop and shape the topic of e-invoicing at European level.
Ardent: Thank you for the update on e-Invoicing in Germany and best of luck on your presentation at the Exchange Summit on September 26th – 28 in Lisbon, Portugal.
