Acknowledging the significance of electronic invoicing the Ministry of Finance is proceeding with the promotion of electronic invoicing in the public sector. To this end a political decision was taken to accelerate the process of introducing e-invoicing. The Ministry of Finance is participating a co-financed programme with the European Commission through which the appropriate technical infrastructure will be developed allowing for the establishment of the appropriate administrative and regulatory framework, ensuring the exchange of electronic invoices between the private and public sector (B2G).
The main advantages of electronic invoicing among others are the following:
1. Reduction of registration errors
2. Shorter payment cycle
3. Transparency in payment processes
4. Better liquidity management
5. Better relationship between customer and supplier
6. Better accounting program management
7. New financing methods
8. Tackling tax avoidance / evasion
The project is carried out by a consortium involving representatives from the public and private sector. From the public sector the representatives are the Ministry of Finance (Coordinator), the Ministry of Energy, Trade, Industry and Tourism, Ministry of Transport, Communications and Works (Department of Postal Services), the Cyprus Organization for Standardization and the representatives from the private sector are RTD TALOS Ltd, Deloitte Ltd and AC Goldman Solutions & Services Ltd. The whole project consists of 6 activities with a starting date 01/10/2016 and completion date 31/12/2017.
The aim of the project is to allow the adoption of electronic invoicing, using two key ingredients that will enable companies to submit electronic invoices to the government. This will be achieved through the adoption of European and international standards and through its authorized Pan-European Public Procurement On-Line (PEPPOL) Access Point. The PEPPOL is the electronic platform that allows public entities to exchange electronic documents between them and between their suppliers. In accordance with the relevant Directive 2014/55/EU, we are obliged to introduce the concept of electronic invoicing in the public sector on 18/04/2019 for the central government and on 18/04/2020 for the remaining public sector entities.