Advancement, development, innovation, vanguard, future… All of these are adjectives we can associate with this very interesting process we call digital transformation. A process that impacts all areas of society. However, digitalization also presents new challenges every day. In its light, technical tools and concepts emerge that take time to assimilate and master. One of them is what we discuss in this article: What is UBL? Why is it gaining so much relevance lately? And, as far as easyap is concerned, what is its relationship and its importance in e-invoicing? We clarify this by answering the most frequently asked questions.
What is UBL?
As is common when we talk about technology, Anglicisms are global and frequent terms. At the same time, it’s also very common to encounter acronyms. And when it comes to defining what UBL is we encounter both. So UBL is the acronym for Universal Business Language.
However, we are more interested in establishing what UBL is at a technical level. In this sense, we are talking about a standard that has been created and developed for the exchange of electronic documents. Specifically, UBL is used for invoices, delivery notes, orders, etcetera, in electronic format and between different systems and organizations.
It is designed for digital industries, that is, for anyone who wants to have a future and survive. Its use is becoming increasingly common and, in many cases, mandatory. Especially when we talk about B2G (Business to Governments), as a large number of countries only allow e-invoicing for any operation with Public Administration.
Returning to the more technical aspects of UBL, the UBL format is based on the business standard extensible markup language. This new Anglicism is what we most commonly know as XML. It helps automate and simplify business processes. Therefore, UBL has been implemented in several countries and is currently considered the international standard for electronic invoicing.
When was it created and for what purpose?
To fully understand what UBL is today, you need to know how it was created, in what context, and who propelled it. Likewise, it was created in late 2002, although its first version was launched in 2003. Since then, like any digital system, protocol, standard, or tool, UBL has been updated and optimized according to market and business needs. Currently, its latest version is 2.3.
Regarding who created it and with what objective, the UBL language was developed by the well-known organization OASIS (Organization for the Advancement of Structured Information Standards). Specifically, it was the result of a collaborative effort made by several organizations. The project was led by OASIS, and their objective was to standardize the secure exchange of digital business documents within the business landscape.
Who manages UBL today?
As we have mentioned, UBL was developed by OASIS. This organization, created in 1993 with members from all over the world, is a global non-profit consortium. Its team includes companies, governments, and other non-profit associations with which it works on the creation and promotion of open standards for information technology.
Currently, OASIS itself continues to manage and carry out all UBL maintenance. However, the success that the UBL format has had in the field of electronic invoicing has led many governments to establish it as mandatory, as well as to participate in the standard’s development processes.
How does Universal Business Language work?
If we delve into the more technical aspect of UBL, we have already covered which is an XML language. That is, a markup language.For those who do not have deep technological knowledge to understand, a markup language allows structuring and describing certain information and data so that it can be recognized by software.Likewise, UBL is used to create documents in formats readable by computers and other devices.
In turn, the use of UBL is actually so simple that it only consists of two easy steps:
- You create a UBL document using the XML format.It records the commercial information of a transaction. That is, the mandatory information and the data that an invoice must include.
- Once the document is created you can send it to another software via a private network using secure protocols.Furthermore, given the advancements in current software and systems, the recipient can automatically process, store, and conveniently manage the document.
The UBL documents are easily readable and processable, but for this, you need software that accepts and uses these types of formats. Numerous authorities and experts agree that using such a system allows companies to automate processes and reduce human errors.
What advantages does UBL offer for electronic invoicing?
The automation is the main benefit that many people highlight. However, using the UBL format UBL has many other advantages for companies (both public and private) that we should discuss. Specifically, from easyap, we will highlight those we detail below.
You automate your business processes
With UBL, you can automate and simplify numerous processes in your business.Thanks to this language, you can issue, receive, and manage various commercial documents that affect your accounting. And not only that, but you do it agilely, in a standardized and secure way regarding data and information protection.
You improve efficiency
Through XML languages like UBL you reduce human errors and processing times.This benefit is inherent to using technology, which eliminates the task of manually entering documents into the system and saves time. Furthermore, you can invest that time and human resources in other functions.
You reduce economic costs
In line with the previous point, with UBL and e-invoicing you reduce the costs associated with document management and information exchange.For example, your investment in storage space, materials, and especially human personnel will be much lower than before.
You comply with e-invoicing requirements
The UBL language has been implemented in several countries, and the use of e-invoices is mandatory by law throughout the EU and in some other parts of the world. It is already considered an international standard for e-invoicing, therefore, by using it through a reliable software, you will be complying with the regulations established by the authorities.
You help combat tax evasion
With the digitalization of invoicing processes, the governments of different countries and regions can more efficiently manage everything related to taxation and accounting for businesses. With formats like UBL or FacturaE (in Spain), authorities can better control operations carried out by companies and combat crimes like tax evasion much more effectively.
You contribute to sustainability
Another reason why UBL has been adopted is its sustainable nature.Being entirely digital and in electronic format, the consumption of materials like paper is significantly reduced. In this way, the environmental impact companies have on the planet and its natural resources is much lower.
In which countries is the UBL format being used?
Precisely to leverage all the advantages offered by the UBL format in particular and e-invoicing in general, governments have been promoting them for years. Currently, numerous regulations and laws in countries worldwide establish it as mandatory.
Some examples of countries or regions where UBL has been implemented or is being implemented are:
– Europe. Although e-invoicing is mandatory in them, most countries have implemented different formats: FatturaPa in Italy, Facturae (which is another XML format) in Spain, PEPPOL-BIS in Belgium, or ESIDIS in Greece. However, Portugal or Sweden do operate with UBL, and the EU, since 2019, considers it the standard format for operations with any public administration in its member states. Here we tell you about e-invoicing news in Europe.
– Japan. In Japan, a leader in innovation and technology, UBL is also being used for the exchange of commercial documents between companies.
– Latin America. Countries like Mexico, Chile, Colombia, and Brazil, among others, have already promoted laws and other types of proposals to establish the UBL standard for e-invoicing.
We must remember that, although UBL is already a reality in much of the world, there is still a long way to go. Many of these regulations are still exclusively applicable to B2G, so a good number of private companies, in their B2B or B2C operations, do not implement it.
Nevertheless, current and future legislations are moving in the same direction. That of establishing the mandatory use of UBL and e-invoicing in any commercial sphere.
Therefore, and by way of conclusion, we pose the following question: why not get ahead and embark on your digital transformation now? At easyap we will be happy to help youWith it. By implementing our software, you can digitize all your business’s invoicing, complying with the relevant legislation and leveraging the numerous advantages of being a digital business.
