B2G (Business-to-Government) refers to transactions and collaborations between businesses and government organizations. This is a form of e-commerce where companies provide services or products to government entities. Specialized software solutions like EMDI | Commercial Management by SBZ facilitate B2G transactions, enabling companies to organize commercial activities and invoicing processes in compliance with government requirements.
How Does B2G Work?
In B2G transactions, businesses supply products or services to public sector organizations, such as ministries and municipalities. Companies participate in public tenders, submit bids, and, if selected, enter contracts for the provision of services or goods. Software like SBZ’s EMDI simplifies the process by offering capabilities for invoicing, order tracking, and adherence to tax and regulatory standards.
Who Uses B2G?
B2G is mainly relevant to companies that supply essential products or services to the public sector, such as:
- Technology Companies: Offer software and cybersecurity services.
- Construction Companies: Participate in public infrastructure projects.
- Medical and Pharmaceutical Companies: Supply equipment and medicines to public hospitals.
- Consulting Firms: Provide strategic and administrative advice.
- Security Firms: Provide solutions for national security.
- Educational Institutions and Training Companies: Offer training programs for public employees.
- Energy and Environmental Companies: Provide energy solutions and environmental management services.
Advantages of Specialized Software.
Using specialized software like SBZ’s EMDI offers companies key advantages, such as:
- Compliance with government invoicing specifications.
- Transaction tracking and adherence to national and international standards.
- Facilitated communication with authorities for procedural compliance.
- Mandatory Electronic
Invoicing and Exceptions.
Electronic invoicing requirements for B2G transactions have specific exemptions:
- Low-Value Contracts: Contracts valued at €2,500 or less (excluding VAT).
- Contracts Between Public Entities: Non-competitive contracts between public sector entities.
- Defense and Security Contracts: Contracts under Law 3978/2011, classified as confidential.
- Other General Government Expenditures: Expenditures outside Laws 3978/2011, 4412/2016, and 4413/2016, valued up to €2,500.
The rollout of mandatory e-invoicing for B2G transactions is gradual and depends on the organization type and contract:
- January 1, 2024: Applies to central administration entities.
- June 1, 2024: Applies to other contracting authorities.
- January 1, 2025: All general government expenses must be invoiced electronically.
Conclusion:
B2G is a strategic area for companies aiming to expand their operations with the public sector.
Sources:
- Investopedia: Business-to-Government (B2G) Definition
- EY: Greece – E-invoicing on Public Procurement Contracts (B2G Transactions)
Disclaimer:
- This article is based on information from external sources and does not constitute legal, tax, or professional advice.
- Every effort has been made to present accurate information; however, errors, omissions, or inaccuracies may be present.
- Responsibility for verifying the accuracy of the information lies with the reader.
- It is recommended to consult with professionals or verify information as needed.
- For specific details, readers are encouraged to refer to official sources or qualified professionals.
