Electronic invoicing

25.05.2015

Like many other companies before us TPA has decided to switch to sending our invoices in electronic form. We are convinced that e-invoicing is an effective and modern medium of communication between business partners. Herein we would like to inform you on the advantages of e-invoicing and to provide you with a more detailed explanation from the perspective of tax legislation, technical support and accounting.

  • Legislation

In 2013, the pertinent section of EU VAT Directive was implemented into the Czech VAT Act. The directive aims to create equal treatment of paper and e-invoices and, by doing so, to facilitate the use of e-invoicing in Europe in accordance with current technical trends. Our e-invoices will be affixed with a digital signature, which is a technology explicitly permitted by law and which will ensure the accuracy, security, authenticity and integrity of e-invoices and the content thereof.

  • Document in PDF format

For our e-invoices we will be using the PDF format (Portable Document Format) which is a widely-used form of viewing documents electronically. By means of a digital signature, the PDF format invoice will bear electronic information on the identity of its issuer and information that the original document has not been changed.

  • Practical references as to the significance of receiving an e-invoice

We ask you kindly to provide us with an email address to which we can send the e-invoices. We recommend creating an address which will be used for receiving e-invoices only. This is practical for several reasons. First, you will be acting in accordance with the recommendation by the Czech financial authority. Further, it will facilitate implementation of checks on the completeness of received e-invoices, and you can implement some effective IT solutions for processing the received e-invoices.

Upon receipt, the further processing of e-invoices will depend on the form in which you approve, account for and archive documents. If your processes are adjusted for electronic workflows, the e-invoice will remain unchanged within the 10-year archiving period. If your workflow is based on paper documents, you can print out the PDF e-invoice. When printing out you will ensure that the content remains unchanged. In any event, you should implement an internal guideline on handling e-invoices regardless of which form of e-invoice processing you use

Our experts in tax, accounting or IT aspects of e-invoicing are at your disposal to discuss any further details you might find interesting.