Digitization brings many benefits that can positively affect your business, and since e-invoices have been legally introduced, it is important to be up to date with all information and apply the electronic invoicing system on time.
E-invoices can save you up to 80% of costs compared to traditional, paper invoicing and improve your business.
What exactly is an electronic invoice, what is the difference between the SEF and SUF systems, as well as what elements should one electronic invoicing document have, read below.
What is an e-invoice?
An e-invoice is a document that is electronically created, authenticated, sent, received, and stored in electronic form. It represents an electronic record of an invoice, i.e. a bill, which clearly shows all mandatory data following the Serbian Law on Electronic Invoicing. Each e-invoice must have an internal (technical-program scheme) and external (visual) form, as well as the following elements:
- invoice issuance date,
- invoice number,
- date of turnover of goods and services,
- VAT number or TIN of the issuer,
- full name and address of the invoice issuer,
- VAT number or TIN of the recipient,
- full name and address of the recipient of the invoice,
- type of goods/services,
- type/quantity of delivered goods or type/scope of service,
- taxable amount at rate or exemption,
- unit price without VAT,
- discounts if any,
- Tax rate,
- the total amount of VAT.
An e-invoice can be created and sent through specialized electronic invoicing software or the E-invoice website/application. Every created electronic invoice must be electronically verified with the exact time of the sent document!
Which entities are obliged to use the electronic invoicing system?
The Law on Electronic Invoicing clearly states that every legal entity from the public or private sector (VAT subjects) is obliged to apply and use e-invoices as a regular and valid invoicing system. This includes all:
- private sector entities based on mutual transactions,
- private sector entities based on a transaction with a public sector entity,
- public sector entities based on transactions with private sector entities,
- public sector entities based on mutual transactions.
Other persons can use the electronic invoicing system as voluntary users, without ongoing legal obligation, in the current and next calendar year. Therefore, if you decide to use the electronic invoicing system, you must keep in mind that you are obliged to send your invoices exclusively through that same system.
What is the difference between SEF and SUF?
Before dealing with the differences between these two systems, it is important to know what abbreviations they represent:
SEF – a system of electronic invoices (in Serbian sistem elektronskog fakturisanja)
SUF – invoice management system (in Serbian sistem za upravljanje fakturama)
SEF is a software solution for the process of manipulating e-invoices in the form of creating, sending, receiving, and storing e-invoices for all legal entities. A central information intermediary manages the SEF.
SUF is a web platform intended for receiving, storing, approving, and preparing entry invoices, created by the Office for Information Technologies and Electronic Administration. SUF also allows users to manually enter invoices that have arrived in paper form.
Why are we using e-invoices?
There are numerous benefits to the introduction of electronic invoices for the public and private sectors. Digitization enables more efficient, safer, and faster functioning than was the case with the paper way of invoicing. Electronic invoices eliminate up to 80% of the costs of the invoice procedure, speed up the invoicing process itself, and at the same time reduce the number of errors in the creation and processing of invoices. The state has a system to ensure compliance with legal regulations through SEF, and users can count on a more stable and transparent flow of funds.
By introducing e-invoices, the Republic of Serbia took a step further in the digitalization process. There are several webinars that you can watch on the E-faktura website so that you can easily and efficiently join the electronic invoicing system. Besides being introduced as a legal obligation of private and public sector entities, e-invoicing is a much more efficient, faster, and transparent way of creating, sending, and processing invoices within companies. All your invoices are in one place, in electronic form, instead of piling binders on your shelves – you reduce the amount of paper you use (which is an environmental benefit) and store them more easily on your account. Using the electronic invoicing system is free and there are no additional costs for users. Companies may hire information intermediaries who would deal with the use of these services on behalf of the companies they represent.
We hope that this text will help you understand how e-invoices work and find out how Desk&More can help you improve your company’s business HERE.