Digitalization has also changed the relationship between businesses and public administrations. In Spain, B2G invoicing (Business to Government) is mandatory for public sector suppliers, which has driven the adoption of e-invoicing secure and approved solutions. We are facing a change that is a matter of legal compliance. However, it is also an opportunity to optimize processes, gain efficiency, and guarantee the traceability of your operations.
Let’s explore what B2G invoicing is, which companies must use it, how it differs from B2B, and its advantages. But above all, discover why you should choose easyap as your technological ally and make the most of its benefits.
What is B2G Invoicing?
By definition, B2G invoicing is the process by which a company issues and sends electronic invoices to Public Administrations. In Spain, every supplier that invoices a public entity must do so, through FACe (General Entry Point for Electronic Invoices of the State) or the equivalent platforms managed by autonomous communities and municipalities.
Differences between B2B and B2G Invoicing
Furthermore, the B2G acronym must be distinguished from other common and widely used ones such as B2B and B2C:
- B2B (Business to Business): invoicing between private companies.
- B2C (Business to Consumer): invoicing to final consumers.
- B2G (Business to Government): invoicing to government agencies and public entities.
However, while B2G invoicing clearly differs from B2C, it does intertwine with B2B. We can see this in the table below, where we compare both:
Who must invoice governments and administrations?
While it is already mandatory in Spain, B2G invoicing is also becoming increasingly common in Europe. However, we are pioneers, as the e-invoicing obligation B2G in our country has been a reality for a decade and affects:
- Any provider of goods and services.
- Large, medium, and small businesses.
- Freelancers and individual professionals.
In fact, any legal entity that works with public institutions must now invoice electronically. How? With the Facturae format, and through the FACe system or the corresponding entry points.
Legal framework for B2G invoicing in Spain
Legally, this mandatory B2G e-invoicing in Spain is framed within Law 25/2013. This law promotes electronic invoicing and the creation of an invoice accounting register for the public sector.
Since January 15, 2015, all invoices issued to the Public Administration must be sent in electronic format. Likewise, this legal framework pursues the following objectives:
- More transparency in public payments.
- Combat late payments in transactions with the Administration.
- Facilitate traceability of public spending.
- Digitize the business-government relationship, reducing management costs.
For the financial director, this adaptation is not optional: whoever does not comply with the law will have their invoices rejected and their collections delayed.
International trends in B2G invoicing
As we mentioned, Spain is not an isolated case. One only needs to look at other countries to see that B2G e-invoicing is spreading throughout Europe. We see this with several concrete examples:
- Italy was one of the first to establish the total obligation for e-invoicing, initially for B2G and then for B2B relationships, with FatturaPA.
- France and Germany are also moving towards hybrid models with national platforms that centralize public invoicing.
- For its part, the European Union promotes standardization through the PEPPOL (Pan-European Public Procurement OnLine).
These cases anticipate that, in the coming years, we will have a homogeneous e-invoicing framework across Europe. A fact that will benefit Spanish companies that are already adapted.
General Benefits of B2G E-invoicing
While some view this legal obligation as a burden, B2G invoicing brings significant advantages. Benefits that go far beyond legal compliance:
- Avoids penalties and invoice rejections.
- Greater agility in invoice management and validation.
- Fewer errors thanks to the use of standardized formats.
- Cost savings on paper, printing, storage, and postal shipments.
- Full traceability with detailed real-time tracking of each invoice’s status.
- Improved liquidity, which facilitates more predictable payment terms.
How to choose a B2G e-invoicing provider
Nevertheless, to take advantage of these general benefits, it is essential to choose the right tool and partner. If you are at that point, consider the following criteria when making your selection:
- Legal compliance: that the software is approved to work with FACe and standardized formats.
- Scalability: that it also allows you to carry out your B2B and B2B invoicing, as well as any future legal obligations that may be approved.
- Integration: that it is compatible with your ERP, CRM, and other accounting systems you already use.
- Security: that it features data encryption and complies with information protection regulations.
- Support and guidance: that it provides real-time technical assistance and training for your financial team.
- Cost and ROI: evaluate the medium-term savings against the initial investment of each software.
Why is easyap the best option for your B2G invoices?
Precisely at this point, we need to talk about easyap. We are experts in financial automation and electronic invoicing. Our solution is designed to help financial directors like you transition to an efficient and 100% secure digital model.
To be more precise:
- We are an approved platform for working with FACe and with any other regional or local entry point.
- We help you achieve unified management of your B2B and B2G invoices in a single environment.
- We offer a simple integration with all leading ERPs on the market (SAP, Oracle, Microsoft Dynamics, etc.).
- We provide real-time control and traceability of the entire invoice lifecycle.
- We generate administrative time savings that translates into direct economic benefits.
- We also minimize human errors, which generates more economic savings.
- We give you personalized expert tax support and in accordance with all Spanish regulations… and those of many other countries where you may operate.
Strategic value for financial directors
At the same time, and beyond legal compliance, B2G invoicing is a digital transformation lever and of great strategic value. This is why many financial directors value and choose us, as they have confirmed that integrating easyap also means:
- Having centralized financial information and in real time.
- Improving cash flow planning thanks to the traceability of collections.
- Increase the internal control with the digital audit of each invoice.
- Prepare the company for the leap to mandatory B2B e-invoicing.
In short, B2G e-invoicing is much more than sending invoices to the administration. It consists of taking a big step towards more effective, transparent, and scalable financial management. A perfect strategic opportunity to gain efficiency, reduce costs, and get ahead of digitalization.
There, easyap is the ideal ally, as we design a complete, secure, and tailored solution for your needs. If you want reliability and efficiency, contact us.
