Iceland Hot On Electronic Invoicing
A press release issued by Iceland’s central Information Technology (IT) organization, Upplýsingatækni, stated, “This is an important step in the development of electronic commerce in Iceland. This move will undoubtedly encourage companies to adopt e-invoicing as well.”
The move is based on recommendations issued by Iceland’s Government Efficiency Group (GEG). In 2013, that group was tasked with devising ways for the government to reduce costs while improving payment processes between it and the private sector. The organization has projected a savings of EUR 333,000 or approximately $357,000 annually once the new payment system is fully implemented. While that savings wouldn’t make much of a dent in the American economy, it signifies great savings for Iceland’s small economy.
As a way to gauge the potential success of mandating B-to-G invoicing, the Icelandic Ministry conducted several pilot programs with the nation’s hospitals. Those studies revealed e-invoicing not only saved the hospitals money, they also reduced workloads and lowered interest payments.
In addition to recommending e-invoicing, the GEG also suggested the adoption of electronic procurement.