e-Invoicing Quiz

Test your knowledge on e-invoicing with our e-invoicing quiz.
Click on an answer to reveal if you are right – or not!

  1. Which of the following countries has tax authority legislation in place for electronic invoicing?
     
    1. [peekaboo name=”1a” onshow=”France” onhide=”France”]
      [peekaboo_content name=”1a”]Try again.[/peekaboo_content]
    2. [peekaboo name=”1b” onshow=”United Kingdom” onhide=”United Kingdom”]
      [peekaboo_content name=”1b”]Try again.[/peekaboo_content]
    3. [peekaboo name=”1c” onshow=”Germany” onhide=”Germany”]
      [peekaboo_content name=”1c”]Try again.[/peekaboo_content]
    4. [peekaboo name=”1d” onshow=”Spain” onhide=”Spain”]
      [peekaboo_content name=”1d”]Try again.[/peekaboo_content]
    5. [peekaboo name=”1e” onshow=”United States” onhide=”United States”]
      [peekaboo_content name=”1e”]Try again.[/peekaboo_content]
    6. [peekaboo name=”1f” onshow=”All of the Above” onhide=”All of the Above”]
      [peekaboo_content name=”1f”]Correct, They all do. Each country has some form of legislation that relates to electronic invoicing from the local tax authority that must be complied with.[/peekaboo_content]

    2.  

  2. Which of the following processes guarantee the required authenticity and integrity for electronic invoicing within the European Union?
     
    1. [peekaboo name=”2a” onshow=”Email” onhide=”Email”]
      [peekaboo_content name=”2a”]Maybe. Under the new rules (2013) sending an electronic file (PDF) as an attachment over email can potentially meet the requirements for authenticity & integrity. But this is yet to be proven and has no precedence.[/peekaboo_content]
    2. [peekaboo name=”2b” onshow=”Electronic Data Interchange (EDI) with suitable management controls” onhide=”Electronic Data Interchange (EDI) with proper management controls”]
      [peekaboo_content name=”2b”]Correct. Both B & C are the most definitive answers, EDI being the longest established, with clear guidelines in Europe since 1994.[/peekaboo_content]
    3. [peekaboo name=”2c” onshow=”Digital signatures” onhide=”Digital signatures”]
      [peekaboo_content name=”2c”]Correct. Both B & C are the most definitive answers, digital signatures provide authenticity & integrity and can be implemented quickly and efficiently.[/peekaboo_content]

    3.  

  3. Electronic invoicing programmes are proven to offer compelling savings for companies of any size. On average, my company can expect to save the following:
     
    1. [peekaboo name=”3a” onshow=”Between 0.5% and 2% of my annual revenues” onhide=”Between 0.5% and 2% of my annual revenues”]
      [peekaboo_content name=”3a”]Correct. There are many claims made on the different savings that can be made by reducing paper processing within AP and AR. The simplest formula to evaluate your savings potential is that on average your company will save between 0.5-2% of its annual revenues. For a €500m company that can range from €2,500,000 to €10,000,000. Source: Billentis, 2012[/peekaboo_content]
    2. [peekaboo name=”3b” onshow=”Ten per cent of my annual revenues” onhide=”Ten per cent of my annual revenues”]
      [peekaboo_content name=”3b”]Try again.[/peekaboo_content]
    3. [peekaboo name=”3c” onshow=”Eighteen per cent of my annual revenues” onhide=”Eighteen per cent of my annual revenues”]
      [peekaboo_content name=”3c”]Try again.[/peekaboo_content]
    4. [peekaboo name=”3d” onshow=”Twenty five per cent of my annual revenues” onhide=”Twenty five per cent of my annual revenues”]
      [peekaboo_content name=”3d”]Try again.[/peekaboo_content]

    4.  

  4. If audited by the local tax authority a company has to provide documentation to support its accounts. If you receive electronic invoices what do you need to prove:
     
    1. [peekaboo name=”4a” onshow=”The invoice came from the named supplier” onhide=”The invoice came from the named supplier”]
      [peekaboo_content name=”4a”]Try again.[/peekaboo_content]
    2. [peekaboo name=”4b” onshow=”The invoice has not been tampered with or modified in any way” onhide=”The invoice has not been tampered with or modified in any way”]
      [peekaboo_content name=”4b”]Try again.[/peekaboo_content]
    3. [peekaboo name=”4c” onshow=”All of the required data fields are on the invoice” onhide=”All of the required data fields are on the invoice”]
      [peekaboo_content name=”4c”]Try again.[/peekaboo_content]
    4. [peekaboo name=”4d” onshow=”The correct tax amounts are shown for each line item” onhide=”The correct tax amounts are shown for each line item”]
      [peekaboo_content name=”4d”]Try again.[/peekaboo_content]
    5. [peekaboo name=”4e” onshow=”That the process I employ can prove all of the above” onhide=”That the process I employ can prove all of the above”]
      [peekaboo_content name=”4e”]Correct. As the receiver of the invoice you are not technically responsible for proving any of these criteria, but the process that you employ must do this. This may seem a pedantic point but the law states that the issuer of the invoice is responsible for a-d above. To place the burden of compliance on suppliers (especially if a small business) would stifle e-invoicing adoption and reduce potential cost savings, so many large corporates employ third party companies to provide e-Invoicing software and services thus ensuring that both trading counterparties are compliant when sending and receiving invoices.[/peekaboo_content]

    5.  

  5. Your company uses EDI to send and receive electronic invoices to and from all of your domestic and international customers. Which of the options below gurantees the authenticity and integrity of your EDI invoices?
     
    1. [peekaboo name=”5a” onshow=”Print a paper copy of each invoice you send/receive” onhide=”Print a paper copy of each invoice you send/receive”]
      [peekaboo_content name=”5a”]Try again.[/peekaboo_content]
    2. [peekaboo name=”5b” onshow=”A properly managed process, including data validation, authenticity & integrity & archiving” onhide=”A properly managed process, including data validation, authenticity & integrity & archiving”]
      [peekaboo_content name=”5b”]Correct. EDI is the most consistent form of electronic invoicing across Europe as authenticity and integrity is engrained within a value added network (VAN), Regulations defined by organisations such as the ICC and GS1 have been in place since 1994 (1994/820/EC) to clearly define what a compliant EDI process for e-Invoicing is, and this has been agreed by all EU member states. However not all companies implement this process efficiently and others prefer to print paper copies of invoices and retain them for tax audits.[/peekaboo_content]
    3. [peekaboo name=”5c” onshow=”Store the paper copy of each invoice you send/receive in an archive” onhide=”Store the paper copy of each invoice you send/receive in an archive”]
      [peekaboo_content name=”5c”]Try again.[/peekaboo_content]

    6.  

  6. I know that I have to keep a human readable copy of EDI invoices for a certain number of years. Which of the following invoice storage methods are considered to be tax compliant?
     
    1. [peekaboo name=”6a” onshow=”Storing paper copies in filing cabinets” onhide=”Storing paper copies in filing cabinets”]
      [peekaboo_content name=”6a”]Try again.[/peekaboo_content]
    2. [peekaboo name=”6b” onshow=”Storing EDI invoices in an electronic archive” onhide=”Storing EDI invoices in an electronic archive”]
      [peekaboo_content name=”6b”]Try again.[/peekaboo_content]
    3. [peekaboo name=”6c” onshow=”Storing PDF copies of EDI invoices in an electronic archive” onhide=”Storing PDF copies of EDI invoices in an electronic archive”]
      [peekaboo_content name=”6c”]Try again.[/peekaboo_content]
    4. [peekaboo name=”6d” onshow=”All of the above” onhide=”All of the above”]
      [peekaboo_content name=”6d”]Correct. All three of methods are acceptable to most tax authorities, however, storing paper copies negates the cost savings offered by electronic invoicing. Also, if your company is saving EDI invoices in an electronic archive they must be presented to the tax authorities in a human readable format.[/peekaboo_content]

    7.  

  7. When sending/receiving electronic invoices, which of the following optionsshould be your primary concern:
     
    1. [peekaboo name=”7a” onshow=”Security of the information” onhide=”Security of the information”]
      [peekaboo_content name=”7a”]Try again.[/peekaboo_content]
    2. [peekaboo name=”7b” onshow=”Compliance with local tax authority regulations” onhide=”Compliance with local tax authority regulations”]
      [peekaboo_content name=”7b”]Try again.[/peekaboo_content]
    3. [peekaboo name=”7c” onshow=”Cost savings” onhide=”Cost savings”]
      [peekaboo_content name=”7c”]Try again.[/peekaboo_content]
    4. [peekaboo name=”7d” onshow=”All of the above” onhide=”All of the above”]
      [peekaboo_content name=”7d”]Correct. You should be concerned about all three. While security of information is not part of tax compliance, it is a best practise to always keep sensitive information secure. If your company embarks on an e-Invoicing programme it does have to consider the different tax compliance laws for each country in which it does business. The cost savings offered by electronic invoicing, with an average ROI of between 6-18 months, offer compelling reasons for you to adopt this approach.[/peekaboo_content]