Electronic invoicing is becoming mandatory for business-to-business (B2B) transactions throughout Europe. Countries like France, Germany, and Belgium already have a defined calendar for e-invoice implementation. And Spain is also in the deployment phase of this digital transformation. Of course, new tax regulations also include electronic invoicing in the HORECA channel.
Although much is said about the benefits of electronic invoicing for reducing tax fraud and improving the accuracy of tax data reported to authorities, there are also multiple advantages for companies themselves.
Back-office digitalization and supply chain flow represents a major advance for the HORECA channel, and can revolutionize how companies relate to their suppliers and vice versa.
In this article, we explain how electronic invoicing will be implemented in Spain and the positive impacts of digitalization for restaurant and hotel companies.
The Crea y Crece Law in Spain
Law 18/2022, known as the Crea y Crece Law, aims to promote business growth in Spain. One of its key mandates is the mandatory use of electronic invoicing in all B2B transactions.
This not only allows companies to send and receive invoices more quickly, but also ensures smooth connection between them. Digitalization reduces costs and improves transparency between business owners and the Tax Agency.
The Crea y Crece Law was published in Spain's Official State Gazette on September 29, 2022, and came into force on October 19 of the same year. However, the requirement to use electronic invoicing in B2B transactions depends on a specific regulation still pending final approval.
The Ministry of Economy has disseminated a draft of the regulation developing this obligation, but its final approval is still in process. According to the law, these will be the implementation timelines:
Companies with billing > €8M:
- Electronic invoicing and invoice status reporting: 12 months from publication of the Technical Ministerial Order.
- During the first year of mandatory electronic invoicing, the e-invoice must be accompanied by a PDF, unless the recipient waives it.
Companies with billing < €8M:
- Electronic invoicing: 24 months from publication of the Technical Ministerial Order.
- Invoice status reporting: 36 months from publication of the Technical Ministerial Order.
Although the publication of the Technical Ministerial Order will be the official starting point for the timeline count, companies can now begin reviewing and adapting how they issue and receive invoices. This legislation can also be the gateway to much-needed digital transformation of all back-office tasks and how their efficiency affects front-office operations.
Beyond electronic invoice implementation, there will also be the obligation to use certified invoicing software, or SIF (Sistema Informático de Facturación). A SIF supports the entire electronic invoicing process and can automatically submit issued invoices to the tax administration if integrated with Verifactu. This platform enables presentation of electronic invoices and facilitates communication with the tax administration.
Back-Office Digitalization
HORECA channel companies usually work with multiple suppliers and systems. However, many of them still face the challenge of efficiently integrating their ERP and all their transactions to meet their needs. Back-office digitalization is the answer to automating tasks still performed manually.
This involves using digital tools and software to manage supplier catalogs, inventory, recipe costs, issue orders, approve delivery notes, and send electronic invoices to all suppliers in the supply chain.
With digital transformation of the back-office, companies can benefit from traceability of orders, delivery notes and invoices, increased profits, reduced manual work, and minimized errors.
Paper document management can generate several inefficiencies, such as delivery note disputes, long payment and collection cycles, discrepancies, and invoice rejection that affect cash flow and deteriorate supplier relationships.
Back-office digitalization enables buyers and suppliers to automate daily tasks such as purchase and inventory management, order exchange, electronic delivery notes and auto-notes, invoice issuance and receipt, automation of invoice processing, reconciliation, and even payment. This transformation provides updated information at all times, promoting more efficient management of prices, product references, stock, received goods, and much more.
Digital Transformation of the HORECA Channel
Electronic invoicing, increasingly driven by regulations, presents itself as the cornerstone of this digital transformation. But even before official implementation of electronic invoicing in the HORECA channel, many companies have already chosen to digitalize their back-office and take advantage of the efficiency it offers. In practice, for a restaurant chain in Spain this means being able to open new establishments and expand without needing to enlarge the administrative team and automatically process over 10,000 invoices and several thousand orders and delivery notes in the first year after digital transformation.
To help companies in this process, there are several technology providers specialized in the sector dedicated to automating processes and allowing companies to focus on what really matters.
These solutions not only digitalize and centralize tasks such as stock control, orders, finances, and logistics in one place, but also integrate with each other and with management systems, to create a back-office ecosystem that communicates perfectly to increase efficiency.
For over 25 years, Voxel has offered its Bavel Procurement solution to companies in Europe and the Dominican Republic. The Bavel platform provides access to an ecosystem of buyers, suppliers, technology partners, and management systems through a single integration.
With over 150 connected PMS and ERP systems to their network, Voxel enables companies to centralize their back-office processes and benefit from automatic issuance and receipt, collection, reconciliation, and approval of invoices, thus optimizing their deliveries and payments.
