Transcript E-Invoicing with IS

Legal & Regulatory Aspects
of E-Invoicing
2009 ICH User Group
Michael Uebber, LH
Legal & Regulatory Aspects
 The “Legal” Invoice
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Reference Information
Digital Signature
Footer Text
E-Archiving
 Value Added Taxes
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The “Legal” Invoice
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The “Legal” Invoice




Reference Information
Digital Signature
Footer Text
E-Archiving
 A note about legal compliance
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Reference Information
 In many countries, a legal invoice requires a set of key fields such as
address, VAT registration number, etc
 It would be difficult for a billing entity to keep this information up-to-date for
all potential billed entities
 All SIS participants will be required to enter this type of data in their Member
Profile
 Includes the necessary data to make an invoice legal by default
 Invoice can be loaded by the airline in full, or can be built by SIS using
default data from the reference tables
 SIS will be mandated by participants to fill in any missing info on submission
on both the “from” and “to” sides of an invoice
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Digital Signature
 Some jurisdictions require a digital signature to be attached to an invoice
before it can be considered “legal”
 Every participant will update their member profile to specify if they need
digital signatures on the outgoing or incoming invoice, or both
 Before settlement, IS will, on behalf of the participants, create any
necessary digital signature
 The digital signature will be downloadable for storage
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Footer Text
 Some jurisdictions require specific text printed on the invoice, in addition to
the reference fields (name, address, VAT registration #, etc.)
 For example, Germany requires a list of the company CEO and other
information
 To facilitate this without creating many new XML fields, there are two lines of
footer text
 The billing party can supply this (or pre-define it as part of a location)
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E-Archiving
 Jurisdictions may require storage of digital invoices for varying amounts of
time
 During this time, the invoices and any applicable digital signature needs to
be accessible for any audits, sometimes stored in the local country
 While a participant will be able to download the invoice and digital signature
for local storage, they can also optionally mandate that Integrated
Settlement stores it on their behalf for as long as needed
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A note about legal compliance
 Legal invoice can be either the data file or the PDF, but only one of them
can be the original
 Integrated Settlement will provide the tools (some of which are detailed on
the previous slides) that will help your company ensure legal compliance
with regards to invoices
 However, it will be your company’s responsibility to know the local laws
and enable the options which will make your invoices compliant
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Value Added Taxes
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Value Added Taxes
 The new record types (IS-IDEC, IS-XML, and IS-WEB) will support Value
Added Taxes on all records
 VAT can be added to an existing record/invoice (e.g. a prime coupon) or a
separate invoice can be created with just VAT records
 VAT can be named anything on an invoice (GST, QST, etc) – it’s just a label
 Any combination of VATs can be added, with specified percentages
 It will be your company’s responsibility to determine whether VAT applies,
how much it should be, and where to put it
 SIS will validate the integrity of your invoice, not the validity of your
submission
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VATs vs. TFCs
 Value Added Taxes are not the same as Taxes, Fees, and Charges
 VAT – An indirect tax levied by governments, with legislation requiring charging
and display on the invoice
 TFC – Arbitrary interlineable taxes. Might be levied by an airport.
 VATs and TFCs are provided separately in the data file supplied by the
participant (or via IS-WEB)
 The invoice template will respect the data file and display the VATs and
TFCs separately, and ensure that they’re labeled appropriately
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Questions?
Email:
[email protected]
SIS Website:
www.iata.org/sis
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