When analysing the negative cash flow aspects for enterprises - and positive for tax (= all tax payers) - it would be useful to calculate how big the VAT-loans are - and how much alternative financing would cost. In the 500k, 1m, 5m, 10m, 100m and 500m turnover cases. You probably have these figures Friso?
19 Feb 2011 07:16 Read comment
The target for us in the Real Time Economy program (in Finland) is to raise the EC target of cutting enterprise administrative costs with 25% by 2012 to 50% by 2015. There is a long list of actions - most of them based on using structured data in e-invoicing. Split payment of VAT is one of them and was developed some time ago already and has been refined since.
The experts engaged in our work have come to the conclusion that the benefits for enterprises are much bigger than disadvantages and naturally enterprises will want to contribute to the building of the Single Market, more efficient collection of VAT, cost savings in the public sector and better rule of law - in return tax payers can expect a lower tax burden.
The 1,5 months that the VAT is on loan is not a sound form of financing and does not have much impact in an SME. Crisis financing can be organized in other ways if needed.
19 Feb 2011 05:49 Read comment
If you read it and also looked into the timetable in the PWC paper you would not make these comments. Invoices are paid by bank transfers - and a split payment does not change the relationship.
18 Feb 2011 17:32 Read comment
Please read the arguments.
18 Feb 2011 14:47 Read comment
Hi Antti,
There is now a global ISO standard in place for the payment reference (thanks to Olli Kähkönen at Nordea). One step has been taken. The next one is to implement it.
12 Jan 2011 12:49 Read comment
Agree that 2011 will be an important year - but see the breakthrough coming from a somewhat unexpected angle - the notification services becoming bidirectional - get notification about e-invoice and approve for payment by pressing "a" - both for private and SME customers. This will then proceed to other proposals and with real time payments become an alternative also for merchants (merger of e-commerce payments and e-invoicing - automating accounting on both sides..)
03 Jan 2011 14:53 Read comment
Off course cash usage would decline faster if ATM withdrawals would be charged for - also in Finland.
11 Dec 2010 11:46 Read comment
I wrote about this in a blog post called "Cash for crime" some time ago: https://www.finextra.com/blogs/fullblog.aspx?blogid=3399.
In the Nordic countries cheques have not been used in practice since the 80s (in Finland private cheques disappeared when a 8 cent charge was introduced for cheque forms in 1983). POS payments moved to debit cards. Finland and Denmark has traditionally had the lowest cash in circulation in relation to GDP. In Sweden there has been a movement towards not accepting cash in shops and public transport to improve security.
08 Dec 2010 18:48 Read comment
The first thing to do should be transparent pricing. Customers pay every cent also for paper statements - even if it is not charged visibly. My experience is that when customers see the cost - they take logical action - in their own interest.
The problem is often that consumer organizations too often oppose these "sticks" (should be called negative carrots instead...) - so they act very much against the true interest of the consumer - and in this case also against reducing CO2 - in the case of paper invoicing the latest study end up at some 8m tons a year in EU...
05 Dec 2010 08:42 Read comment
Not so much subsidies needed - better to encourage transparent charging - common in the Nordics already to add cost of paper invoices to the invoice. Also just - those who use e-invoicing should not pay for more expensive behavior of others.
Same logic was used in bank branches already in the 80s when e-banking was introduced.
Nothing works like "negative carrots"
31 Oct 2010 16:41 Read comment
Electronic invoicing
Whatever...
Transaction Banking
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