Mandate delays – what to do next

It's not unexpected, yet it's still annoying when a delayed mandate throws off your strategy.

Pausing or delaying actions might seem reasonable, but it's not the best approach. Rather than redirecting focus and budget to different projects, use the delay as a chance to make the most of the extra time and keep moving forward. The biggest hurdles will be adapting to new technologies and changing processes and habits.

From a technical perspective, businesses often start working on a new requirement later than they should or underestimate its complexity. Any extra time gained from these delays should be spent catching up or, better yet, getting ahead in development.

It's essential to consider viable options that can propel you ahead of the curve until the mandates come into place, especially since unexpected additional requirements could arise. Choosing the right partner to help make decisions is critical in this process.

When automating your AR and AP processes and ensuring continuous transaction control (CTC) compliance, selecting a service provider known for reliability and innovation is crucial. Your chosen provider should offer technology that can adapt to the future and fulfil the stringent demands of various local regulations. They must also have a broad international reach to comply with existing and upcoming global mandates. This includes offering you the flexibility to modify existing implementations in response to the inevitable regulatory changes. If your current provider falls short of meeting these criteria, it's essential to reassess their capabilities and consider the potential challenges that may arise from these shortcomings.

For organizations looking to adopt a Partner Dematerialization Platform (PDP) in France, the initial step should involve aligning with the specifications for B2B e-invoices and invoice lifecycles set by the DGFiP. Interestingly, PDPs can already facilitate traffic among themselves, even before the Public Invoicing Portal (PPF) is operational. Once the PPF launches, organizations should then focus on reporting B2C and international B2B transactions.

Furthermore, it has been clarified that the requirement for AP functionalities, which include receiving invoices and sending back invoice statuses, will apply to all businesses in France simultaneously, regardless of their size. Businesses are advised to prepare by enabling the processing of XML and detailed line-item data.

Given the complexity of France's reforms, a phased approach to automation, rather than rushing all at once, is advisable. This strategy provides additional time to adapt and streamline the necessary processes.

Meanwhile, the Polish Ministry of Finance has postponed the KSeF mandate's implementation until at least January 2025, though it is definite that the system will be introduced. An external audit and public consultation with the business sector are planned to refine the system. Like in France, businesses should use this delay to closely review the known requirements, particularly the intricate VAT_FA XML schema derived from JPK reporting obligations, which may not seamlessly integrate with standard e-invoicing practices. Preparing in advance and understanding the mandate can help mitigate its impact when the new implementation date is set.

Lastly, it's important to remember the impending implementation of ViDA, which could significantly impact your operations across up to 27 EU Member States and likely several neighboring countries, particularly those in the European Economic Area (EEA). Given this extensive reach, you should consider whether delaying efforts on mandates like those in France and Poland is feasible in view of this upcoming challenge.

Consider the mandates and initiatives that have been announced so far as just the visible part of a much larger iceberg. Below the surface, there's a vast expanse of countries and governments that haven't yet taken action or decided on a specific system. It's wiser to start steering clear of potential issues now rather than dealing with the consequences later.

If you encounter a mandate delay, it's crucial to keep updating your business processes in preparation for any new changes. Stick to your original strategy until you've fulfilled all required standards, integrated the latest technological improvements, enhanced operational efficiency, and adequately prepared your teams for upcoming procedures.