Sepa is coming!

As of 1 February 2014 the European Union will introduce SEPA (Single Euro Payments Area).
The objective of SEPA is harmonisation and simplification of bank transfers within the Euro zone.

SEPA consequences for individuals
For individuals there will be no significant changes. The biggest change for individuals is the adjustment of bank account numbers to IBAN numbers. In the Netherlands the IBAN numbers consist of 18 digits instead of the current nine or ten digits. Some banks already use the new IBAN account numbers.

SEPA consequences for businesses
For businesses, the changes are more significant. Obviously your organization needs the new IBAN numbers of customers and the business’ own IBAN number must be modified on business letters and documentation, websites and administration.

Important issues for your company:
– Inform your customers and suppliers about your IBAN and BIC;
– Collect where possible the IBAN of your customers, suppliers and employees;
– Identify in which software and which documents (including letters and invoices) a bank account is given;
– Make sure your software and administration can handle the longer account numbers;
– Update documents with the IBAN and BIC.

Direct debits and automatic payments
An important issue is the changes regarding direct debits and automatic payments. Companies which use these (eg webshops, etc.) will have to deal with many changes. It is important to discuss what steps should be taken with your software supplier and bank.

On www.sepa.nl you can find more information. On the website you can do a comprehensive check to see if you are SEPA proof!

Source: Register Belastingadviseurs