{"id":5125,"date":"2021-05-13T06:32:13","date_gmt":"2021-05-13T06:32:13","guid":{"rendered":"https:\/\/accountstudio.ee\/?p=5125\/"},"modified":"2021-05-13T06:33:53","modified_gmt":"2021-05-13T06:33:53","slug":"5125","status":"publish","type":"post","link":"https:\/\/www.accountstudio.ee\/en\/5125\/","title":{"rendered":"How eInvoicing is helping standardize transactional data in Estonia"},"content":{"rendered":"<h3><span><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5126 size-full\" src=\"https:\/\/accountstudio.ee\/wp-content\/uploads\/2021\/05\/success_story_1.png\" alt=\"\" width=\"2000\" height=\"1032\" srcset=\"https:\/\/www.accountstudio.ee\/wp-content\/uploads\/2021\/05\/success_story_1.png 2000w, https:\/\/www.accountstudio.ee\/wp-content\/uploads\/2021\/05\/success_story_1-300x155.png 300w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/span><\/h3>\n<p>Running a business can be daunting. In addition to everyday obligations, there are also complex accounting responsibilities involving many time-consuming administrative tasks.<\/p>\n<p><span>According to a 2010\u00a0<strong><a class=\"external-link\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/IP_10_1645\" rel=\"nofollow\">study<\/a><\/strong>\u00a0carried out by the European Commission,\u00a0adopting\u00a0electronic invoices (eInvoices)\u00a0could save the EU economy some\u00a0<strong>EUR 240 billion over a six-year period.<\/strong>\u00a0\u00a0The Commission provides public administrations, service providers, and businesses with advice on eInvoicing related projects to facilitate this transition. This support is based on the lessons learned and challenges faced in B2G (Business to Government) eInvoicing and the\u00a0<strong><a href=\"https:\/\/ec.europa.eu\/cefdigital\/wiki\/display\/CEFDIGITAL\/European+legislation+on+eInvoicing\" rel=\"nofollow\">eInvoicing Directive<\/a><\/strong>\u00a0implementation.<\/span><\/p>\n<h3 id=\"eInvoicinghelpingstandardisetransactionaldatainEstonia-InternetofBusinessProject:standardisingfinancialtransactioninformation\"><span>Internet of Business Project: standardising financial transaction information<\/span><\/h3>\n<p><span>In Estonia, the<strong><a class=\"external-link\" href=\"https:\/\/www.itl.ee\/en\/estonian-ict-cluster\/projects\/internet-of-business-2\/\" rel=\"nofollow\">\u00a0&#8220;Internet of Business&#8221; project<\/a>\u00a0<\/strong>aims to develop a secure and standardised network based on the real-time economy concept, in which business transactions are digital\u00a0and completed instantaneously. The<strong><a href=\"https:\/\/ec.europa.eu\/cefdigital\/wiki\/display\/CEFDIGITAL\/eInvoicing\" rel=\"nofollow\">\u00a0Connecting Europe Facility&#8217;s (CEF) eInvoicing Building Block<\/a>\u00a0<\/strong>actively supports the Estonian stakeholders in conducting this project. The project meets the\u00a0<a class=\"external-link\" href=\"https:\/\/ec.europa.eu\/growth\/single-market\/public-procurement\/digital\/einvoicing_en\" rel=\"nofollow\"><strong>European Commission eInvoicing Directive 2014\/55\/EU<\/strong><\/a>\u00a0objectives and enables\u00a0secure processing\u00a0of national and cross-border transactions between\u00a0public administrations and private entities. The project is comprised of the following partners:<\/span><\/p>\n<ul>\n<li><span>MT\u00dc ITL Digital<\/span><\/li>\n<li><span>Tieto Estonia AS<\/span><\/li>\n<li><span>Unifiedpost AS<\/span><\/li>\n<li><span>Columbus Eesti AS<\/span><\/li>\n<li><span>BCS Itera AS<\/span><\/li>\n<li><span>Account Studio O\u00dc<\/span><\/li>\n<li><span>SimplBooks O\u00dc<\/span><\/li>\n<li><span>O\u00dc Skriining<\/span><\/li>\n<li><span>Association of Estonian Accountants<\/span><\/li>\n<\/ul>\n<p><span>The lead partner is the\u00a0<a class=\"external-link\" href=\"https:\/\/www.itl.ee\/en\/\" rel=\"nofollow\"><strong>NGO ITL Digital Lab<\/strong><\/a>, an Estonian non-profit \u00a0which brings together Information and Communication Technology (ICT) companies.<\/span><\/p>\n<p><span>One of the Estonian entrepreneurs&#8217; main problems when dealing with government institutions is the\u00a0duplication of companies&#8217; obligations when reporting information.<\/span><\/p>\n<p>&#8220;With the help of the Connecting Europe Facility (CEF), we built a middleware that allows accounting software to freely standardise the input for governmental institutions information systems, helping society as whole to deal with this issue,&#8221; Margus Tammeraja, Chairperson of Accountants Estonia, told CEF.\u00a0\u00a0&#8220;So far, tax authorities have been having those point-to-point connections with all the different accounting software, which is cumbersome.&#8221;<\/p>\n<h3 id=\"eInvoicinghelpingstandardisetransactionaldatainEstonia-Mainactivities\"><span>Main activities<\/span><\/h3>\n<p><span>The\u00a0<strong>&#8220;Internet of Business&#8221; project<\/strong>\u00a0is based on the XBRL GL standard for financial transactional data.\u00a0The middleware created in the project context helps to adapt\u00a0software and service providers&#8217; systems and maps them according to the\u00a0<strong>European standard on eInvoicing.<\/strong>\u00a0The recently developed\u00a0<a class=\"external-link\" href=\"https:\/\/www.itl.ee\/en\/estonian-ict-cluster\/projects\/internet-of-business-2\/\" rel=\"nofollow\">&#8216;<\/a><a class=\"external-link\" href=\"https:\/\/www.itl.ee\/en\/estonian-ict-cluster\/projects\/internet-of-business-2\/\" rel=\"nofollow\"><strong>MyCompanyData<\/strong><\/a><a class=\"external-link\" href=\"https:\/\/www.itl.ee\/en\/estonian-ict-cluster\/projects\/internet-of-business-2\/\" rel=\"nofollow\">&#8216;<\/a>\u00a0service allows the submission of\u00a0monthly tax reports in XBRL GL format. Future developments of\u00a0<strong>&#8220;MyCompanyData&#8221;<\/strong>\u00a0should enable service providers to read transactional data stored in other service providers&#8217; systems, improving data exchanges and interoperability among systems. This marks a significant step towards the real-time economy.<\/span><\/p>\n<p><span>Project partners ran\u00a0an\u00a0XBRL GL standard pre-analysis. They mapped it against transactional data in the tax reports while considering the results and concepts of previous projects and observing the possibilities of using innovative technologies information exchange.<\/span><\/p>\n<p><span>Overall, the project resulted in a technical description document with instructional materials reused in Estonia and other EU countries where XBRL GL and EU legislation are used or foreseen.<\/span><\/p>\n<p><span>This initiative is aligned with\u00a0the European Commission Directive 2014\/55\/EU requirements and enables secure national and cross-border transactions between the public and private sectors.<\/span><\/p>\n<p>&#8220;With this project, we wanted to give more time for entrepreneurs to spend resources on their core business, instead of having to deal with administrative tasks,&#8221; Sirli Heinsoo, Internet of Business project manager, told CEF.<\/p>\n<h3 id=\"eInvoicinghelpingstandardisetransactionaldatainEstonia-ChallengesfacedandthesupportprovidedbytheCEFeInvoicingBuildingBlock\"><span>Challenges faced and the support provided by the CEF eInvoicing Building Block<\/span><\/h3>\n<p><span>eInvoicing is a digital solution that enables public sector\u00a0contracting authorities and companies to receive and process electronic invoices, according to the European standard on eInvoicing. In addition to facilitating the synergies and interoperability between the private and public sectors, eInvoicing reduces costs and administrative burden. The timely and automatic processing of companies&#8217; invoices in the EU facilitates cross-border trade,\u00a0making commercial exchanges easier within the internal market.<\/span><\/p>\n<p><span>One problem faced by the\u00a0<strong>&#8220;Internet of Business&#8221; project<\/strong>\u00a0was that the eInvoicing standard is not yet implemented in all accounting IT programs, even though they still follow European legislation.<\/span><\/p>\n<p><span>Due to this limited offer of &#8220;ready to use&#8221; eInvoicing solutions for businesses, the creation of structured eInvoices according to European standards requires additional work for companies to\u00a0make electronic invoices compliant\u00a0and ready to be sent across borders.\u00a0<\/span><\/p>\n<p>&#8220;Instead of making it mandatory for this accounting software system to comply with the European standard, we decided to go a little deeper on the data level and use only one standard system,&#8221; Ms. Heinsoo told CEF.<\/p>\n<p><span>Ultimately, it all comes down to the principles of the EU&#8217;s digital economy: interoperability, re-usability, and the<a href=\"https:\/\/ec.europa.eu\/cefdigital\/wiki\/display\/CEFDIGITAL\/Once+Only+Principle\" rel=\"nofollow\"><strong>\u00a0&#8220;once only\u00a0principle<\/strong><\/a><strong>.&#8221;<\/strong>\u00a0 The eInvoicing Building Block not only facilitates transactions between the public and private sector, but it can also bring tremendous\u00a0<a href=\"https:\/\/ec.europa.eu\/cefdigital\/wiki\/x\/mwTvB\" rel=\"nofollow\"><strong>benefits<\/strong><\/a><strong>\u00a0<\/strong>to\u00a0businesses and citizens.<\/span><\/p>\n<p>&#8220;If the companies reduce their administrative burden, they can focus more on the their core business and clients,&#8221; said Mr. Tammeraja. &#8220;If you focus more on your core business, the quality of the service goes up, and clients are more pleased.&#8221;<\/p>\n<h3 id=\"eInvoicinghelpingstandardisetransactionaldatainEstonia-HowcanCEFhelpyou?\"><span>How can CEF help you?<\/span><\/h3>\n<p><span>At the Connecting Europe Facility, we give you access to free tools, support, and funding to build your digital services. Here are some of the other Building Blocks you might be interested in.<\/span><\/p>\n<p>Source: <a href=\"https:\/\/ec.europa.eu\/cefdigital\/wiki\/display\/CEFDIGITAL\/2021\/03\/22\/eInvoicing+helping+standardise+transactional+data+in+Estonia\">eInvoicing helping standardise transactional data in Estonia (europa.eu)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a business can be daunting. In addition to everyday obligations, there are also complex accounting responsibilities involving many time-consuming administrative tasks. According to a 2010\u00a0study\u00a0carried out by the European<a href=\"https:\/\/www.accountstudio.ee\/en\/5125\/\" style=\"text-decoration: none;\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5125","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>How eInvoicing is helping standardize transactional data in Estonia<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/accountstudio.net\/en\/5125\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"How eInvoicing is helping standardize transactional data in Estonia\" \/>\r\n<meta property=\"og:description\" content=\"Running a business can be daunting. 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