Provided by Billentis – www.billentis.com ^[1]

Market development in 2010 was very dynamic, although I was somewhat over-optimistic in the case of Italy and Spain. I assumed that the Italian legislation (making electronic invoices compulsory for the public sector) would be ratified immediately. In Spain, while the suppliers’ obligations to the public sector are in place, stakeholders seem to have expected far more exceptions.
 
Overall, European market growth for electronic and automated processes is strong and sustainable. Organizations in the public and private sector are keen to reduce costs and to improve their Cash Management. Combined with the rich solution offering, these benefits are sure to result in further strong market growth for electronic invoicing and related topics. With an estimated volume growth of 35% for 2011, E-Invoicing is currently one of very few growing markets.

 The processed B2B volume is expected to reach 1,735 million E-Invoices this year (corresponding to 11.6% of all European B2B invoices). B2C volume is estimated to reach 1,400 million (9.3% penetration).

Provider landscape:

For the vast majority of today’s 470 operators  the annual E-Invoicing volume still lies below 2 million. A logical step for some would be to consider a merger with others. However, high growth rates still seem to be a hindrance to this process. Substantial market consolidation should not be expected before 2012/2013. For this year, I anticipate 25 merger & acquisition deals. Parties interested in acquiring other providers are invited to contact me.

Around 60 additional operators are expected this year in Europe. Although most providers remain focussed on local markets, an increasing number are expanding their geographical reach, around 60 of them with VAT compliance for 30 or more countries.

For a more detailed market overview, see:
www.expp-summit.com/upload/marketoverview/Market-Overview11_372.pdf ^[2]

 
Market developing differently on each side of the Atlantic Ocean
 
Of the 14.4 million invoices sent to the Dutch government, just 6% were exchanged electronically.The government clearly missed its target of 10%, despite the removal of legal barriers. Source: DutchNews

On the other side of the Atlantic Ocean, Brazil is having much more success. With some of the strictest legislation worldwide, they achieved in 2010 in their country alone the same volume of electronic invoices (B2B and B2G) as all the European countries put together. E-Invoicing is mandatory in Brazil and an important vehicle for real-time audits by the government.

The contest between countries with strict legislation in combination with obligatory E-Invoicing and those with lax legal requirements and voluntary usage has produced a clear winner. The obligation, not the legal requirements, seems to make the difference.

Poland: New regulation governing use of electronic invoices

Thanks to the new guidance, businesses can send E-Invoices in any electronic format that allows for authenticity of origin and integrity of content. The prior requirement for electronic signature and use of EDI no longer applies; however, both methods are mentioned in the new guidance as examples of how to satisfy the required conditions for e-invoices.