Invoice Construction Template by ldo18572

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									        Legal Compliance


Kuala Lumpur ICH UG 2010 – Plenary Session
               Bruno Roussel
     Agenda
    Role of Integrated Settlement
    Legal framework
           Legal obligations for e-Invoicing
           Different jurisdictional requirements
    Legal requirements
           Your responsibility v.s. SIS responsibility
           Digital Signature complexity
           Value Added Taxes
    Verification of SIS solution compliance
           Scope coverage
           Geographical coverage
    Final note about legal compliance
    Q&A

SIS – Legal Compliance                              2     October 2010
    Role of Integrated Settlement
     Replace paper
     IS will be legally mandated by billing carriers to “create”, “transport”
      and deliver the invoice
            Where necessary, submitted billing data is “transformed” to a legal
             invoice by creating the digital signature as appropriate and/or adding the
             reference data


     IATA will use a “trusted company” to help comply with local laws and
      to create and verify the digital signatures, and perform legal archive




SIS – Legal Compliance                        3                                  October 2010
     Agenda
    Role of Integrated Settlement
    Legal framework
           Legal obligations for e-Invoicing
           Different jurisdictional requirements

    Legal requirements
    Verification of SIS solution compliance
    Final note about legal compliance
    Q&A




SIS – Legal Compliance                              4   October 2010
    Legal framework
     What is a legal framework for e-Invoicing that SIS needs to comply to?
            Recognition from the tax authorities that electronic invoicing is legal
            Technical recommendations for implementation (DS and Archiving)
            Framework is country dependant
            Should be defined in law and may:
                   Include means of integrity (e.g. EDI)
                   Include means of authenticity (e.g. Digital Signature)
                   Define format to be used, (e.g. XML or PDF)
                   Require prior authorization from tax authorities
                   Include any additional specification (e.g. legal Archiving, specific XML layout)
     If none exists, either discuss a legal framework definition with tax authorities or
      agree exemption.
SIS – Legal Compliance                               5                                       October 2010
    Legal obligations for e-Invoicing
        … where applicable
     Billing Party:
            Apply VAT
            Prove conformity with e-Invoicing laws
            Create and attach digital signature

     Billed Party:
            Verify digital signature before processing the invoice

     Both Parties
            Archive and prevent modification
            Log digital signature, validation key
            Give auditors access to e-Invoices

SIS – Legal Compliance                        6                       October 2010
    Different jurisdictional requirements 1/2
     Requirements are not consistent across countries

     IS e-Invoice process is generic:
            SIS has a generic invoice template that should meet everybody’s
             requirements
            SIS e-Invoice will be created:
                Based on information provided by the billing entity
                Based on the member profile of the billing and billed entity




SIS – Legal Compliance                   7                              October 2010
    Different jurisdictional requirements 2/2
     Various types of Digital Signature - most restrictive airline legislation
      prevails

     Digital signature:
            SIS will use the countries in the from/to address mentioned on the
             invoice header to define DS to be applied
            The DS provider depending in the countries of a cross border
             invoice will:
                Sign with the most restrictive DS if they are compatible OR
                Sign with both signatures if they aren’t



SIS – Legal Compliance                    8                               October 2010
     Agenda
    Role of Integrated Settlement
    Legal framework
    Legal requirements
           Your responsibility vs SIS responsibility
           Digital Signature complexity
           Value Added Taxes

    Verification of SIS solution compliance
    Final note about legal compliance
    Q&A



SIS – Legal Compliance                              9   October 2010
    Legal requirements, your responsibility
     Provide mandatory information on the invoice e.g. :
            The 14 elements that define a legal invoice in most of the jurisdictions
             (e.g. VAT Registration #, VAT Amount, Billing Carrier’s Address, Billed
             Carrier’s Address, etc).
            Other legal information that is present on your invoice template today (e.g.
             board of directors…)
     Specify in your member profile that Digital Signature is required
     Define invoice format according to your legislation

      All SIS participants will be required to enter this type of data in their
            member profile enabling legal invoice creation by default

SIS – Legal Compliance                        10                                 October 2010
    Value Added Taxes
    Context
     Tax administrations want long term access to the invoices, as a
      guarantee of proper VAT treatment of sales transactions
    Responsibility
     It will be your company’s responsibility to determine whether VAT
      applies, how much it should be, and where to put it
     Some jurisdictions require the proper naming conventions
          (Reference list for your information in chapter A13)
     To give auditors access to e-Invoices
     SIS will ensure technical integrity of your invoice, but not the validity
      of your submission
SIS – Legal Compliance                        11                          October 2010
    Legal requirements, SIS Responsibility
    Technical requirements e.g. :

            Digital Signature
                   Type of DS required ( Advanced, Qualified, Specific Qualified..)
                   Validation of the DS

            Data formatting




SIS – Legal Compliance                          12                                 October 2010
    Digital Signature complexity
         DS complexity will be handled by SIS and the DS provider
         For example:
          Advanced Electronic Signature AES
          Qualified Electronic Signature QES
         There is a hierarchy within Digital Signature
              QES has stronger requirements than AES
              QES > AES
          But two QES signatures may be not equivalent:
          IT: Qualified Electronic Signature with time stamp QES IT
          CH: Qualified Electronic Signature with local certification authority QES CH

          QES IT is not equivalent to QES CH

SIS – Legal Compliance                        13                                 October 2010
    Digital Signature matrix samples
                                                         Billed Member

                                               FR               IT            CH


                                               FR               IT            CH
                                          FR
                         Billing Member




                                          IT   IT               IT          IT+CH



                                          CH   CH           CH+IT             CH



                         FR: Advanced Electronic Signature AES
                         IT: Qualified Electronic Signature with time stamp QES IT
                         CH: Qualified Electronic Signature with local certification authority QES CH
SIS – Legal Compliance                                     14                                           October 2010
     Agenda
    Role of Integrated Settlement
    Legal framework
    Legal requirements
    Verification of SIS solution compliance
           Scope coverage
           Geographical coverage

    Final note about legal compliance
    Q&A




SIS – Legal Compliance                     15   October 2010
    SIS compliance - scope coverage
     Platform capabilities will be audited to ensure compliance coverage of
      local legislations:
            External audit will be performed early 2011

            Findings will be provided to the industry


     Cross border issues with digital signature will be handled by the
      provider




SIS – Legal Compliance                        16                      October 2010
    SIS Compliance - geographical coverage
     A primary global solution as been defined:
            Biggest countries of the ICH (turnover)
            EU

     Other countries have been indentified for a subsequent phase:
            When too specific requirements are defined in the legal framework
             e.g. Local proprietary XML layout
            Where legal framework is under construction

     Countries on waiting list
            Countries where no legal framework exist or where e-Invoicing is
             forbidden


SIS – Legal Compliance                       17                                  October 2010
     Agenda
    Role of Integrated Settlement
    Legal framework
    Legal requirements
    Verification of SIS solution compliance
    Final note about legal compliance
    Q&A




SIS – Legal Compliance                     18   October 2010
    Final note about legal compliance
     Integrated Settlement will provide the tools 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




SIS – Legal Compliance                  19                               October 2010
   Question & Answer




SIS – Legal Compliance   20   October 2010
   Thank you.



   Email:
   sis@iata.org

   SIS Website:
   www.iata.org/sis



SIS – Legal Compliance   21   October 2010

								
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