WO2008108861A1

WO2008108861A1 - Electronic document processing

Info

Publication number: WO2008108861A1
Application number: PCT/US2007/071046
Authority: WO
Inventors: Chris Fields; Eric Smith; Daniel Massey
Original assignee: Datacert, Inc
Priority date: 2006-06-12
Filing date: 2007-06-12
Publication date: 2008-09-12

Abstract

A method is provided for processing electronic documents, such as electronic invoices, specifications, or contracts, to ensure authenticity, integrity, confidentiality, and non-repudiation of the document. A third party service provider is established as the agent for two interacting parties. The third party service provider receives an electronic document from a first party, the electronic document relating to a transaction between the parties, the transaction being, for example, a sale or a contract. The third party service provider provides an electronic signature and certification for the document and archives the document, providing it, along with the certification, to the second party or others. The invention is particularly application to processing electronic invoices to comply with value added taxing regulations.

Description

Electronic Document Processing Technical Field of the Invention

[1000] The present invention relates to secure processing of electronic documents, such as the processing of invoices for which taxes, such as value added taxes, are applicable. Background of the Invention

[1001] A value added tax (VAT) is a tax on consumer expenditure. It is collected on business transactions, imports and acquisitions from taxable persons. A VAT system is mandatory, for example, for all Member States of the European Union ("EU"). It is also enforced in countries outside of the EU, such as Switzerland and Australia.

[1002] Under a VAT system as applied by the EU and other countries, when a supplier (e.g., a law firm) sells goods or services to customers (e.g., a client corporation), the supplier and the customer are required to register with the local taxation authorities for VAT and the supplier is required to charge its customer the applicable VAT.

[1003] The invoice is the most important document in the taxable transaction because it details data relevant for determining the VAT, i.e., the date of services, the invoicer, the invoicee, the services delivered, the quantity of services, and the applied VAT rate, as well as the total VAT amount.

[1004] On receipt of a VAT invoice, the customer is obliged to pay the VAT to the supplier. The supplier is obliged to pay the VAT to the taxing authorities; even if the VAT has not been correctly calculated in the invoice, the supplier is liable for paying the correct

VAT.

[1005] At predetermined intervals, the supplier pays to the taxing authorities the VAT received from customers. The supplier can balance the VAT received with the VAT paid, and this may lead to a VAT reclaim from the taxing authorities if the balance of paid VAT is more than the VAT received.

[1006] Under the EU system, each taxable entity carrying on business activities is responsible for adhering to the complex compliance restrictions associated with VAT. Such adherence is both burdensome and impractical for businesses conducting a high volume of transactions. Electronic invoices are common now in industries such as the legal industry.

Electronic invoices present unique problems in documentation and preservation. The parties to the sale and the taxing authority must be able to ensure that records are complete and accurate. The procedures for processing electronic VAT invoices are complex and require each of the parties to have a sophisticated knowledge of electronic document processing, which makes electronic invoices impractical for many companies. Even for entities that have the expertise, such as large global corporations that process thousands of legal invoices per month worth millions of dollars, managing VAT invoices can be excessively burdensome.

Summary of the Invention

[1007] An object of the invention is to provide a system to assist users of electronic documents, such as electronic invoices, contracts, and product specifications, to comply with regulatory and security requirements.

[1008] A third party service provider can be established as the agent for two interacting parties. The third party service provider receives an electronic document from a first party, the electronic document relating to a transaction between the parties, the transaction being, for example, a sale or a contract. The third party service provider provides an electronic signature and certification for the document, either providing the signature and certification itself, or through its agent, such as a certification authority. The third party service provider or its agent archives the document, and provides it, along with the certification, to the second party or others, thereby ensuring authenticity, integrity, confidentiality, and non-repudiation of the document.

[1009] One embodiment of the invention is particularly applicable to the processing of electronic invoices to comply with regulations of a taxing authority. In a preferred embodiment, a third party service provider is established as an agent of a supplier and its customer. The supplier sends invoice information to the third party service provider. The third party service provider extracts information from the invoice and transforms and supplements the data as necessary to provide a data file containing the information required by the taxing authorities. The third party service provider or its agent provides an electronic signature, and preferably a certification, for the data file, or for a file of data derived from the data file. The third party service provider or its agent then archives the electronically signed file as agent for both the supplier and the customer. The third party service provider then sends the invoice data to the customer in a usable form.

[1010] By being the agent for both parties, the third party service provider satisfies the legal requirement of providing and archiving an electronically signed and certified invoice from the supplier to the customer, and the supplier and the customer are relieved of the requirement to obtain their own electronic signatures and certificates or to archive the electronically signed invoice.

[1011] The foregoing has outlined rather broadly the features and technical advantages of the present invention in order that the detailed description of the invention that follows may be better understood. Additional features and advantages of the invention will be described hereinafter. It should be appreciated by those skilled in the art that the conception and specific embodiment disclosed may be readily utilized as a basis for modifying or designing other structures for carrying out the same purposes of the present invention. It should also be realized by those skilled in the art that such equivalent constructions do not depart from the spirit and scope of the invention as set forth in the appended claims.

Detailed Description of Preferred Embodiments

Glossary

file, and transaction details.

This protocol is the verification that the certificate was valid and no data have been

Verification altered when invoice was received. What you do is click on the certificate and Protocol check the validity.

[1012] FIG. 1 shows four supplier computers including law firm computers 102A,

102C, and 102D and a vendor computer 102B. Supplier computers 102A-102D include corresponding data memories, designated as memory 104A to 104D. Similarly, each supplier computer 102A to 102D includes a corresponding processor 106A to 106D. Supplier computers 102A to 102D also includes communications hardware and software 108A-108D for communication securely over the Internet. Each supplier computer 102A to 102D may be executing a different software packages residing in memory for generating invoices. For example, law firm computer 102A includes in its memory 104A, and its processor 106A is executing, Elite^® software 116; law firm computer 102C includes in its memory 104C, and its processor 106C is executing, Juris ^R software 120; and law firm computer 102D includes in its memory 104D. and its processor 106D is executing, ProLaw^R software 122. Suppliers are not limited to law firms using legal software. For example, vendor computer 102B includes in its memory 104B, and its processor 106B is executing, CMS® Open software 118. [1013] Each of supplier computers 102A-102D communicates in a secure manner over the internet 130 to a third party service provider computer 132, operated by a third party service provider, such as DataCert, Inc., the assignee of the present invention. Third party service provider computer 132 includes a processor 133, communications hardware and software 136, and memory 134, that includes archival memory 140 and a program memory containing an VAT invoice processing program 138 that functions as described below to process VAT invoices for both the customer and supplier. An example of invoice processing program 138 is the ShareDoc® program of DataCert, Inc. VAT invoice processing program 138 also provides for secure communications of invoices between suppliers and customers, such as corporate legal departments, and can perform additional functions, such as analyzing invoices for conformance with rules established by the customer. [1014] A customer computer, such as corporate legal department computer 150, includes a processor 152, a memory 154, and communications hardware and software 156. Computer 150 is preferably executing invoice analysis software 160, such as the AIMS® software from DataCert, Inc.. The invoice processing program 138 executing on third party service computer 132 converts all the invoices received from supplier computers into a single format 162 that is usable by the invoice analysis software 160 operating on corporate legal department computer 150.

[1015] In accordance with preferred embodiments of the present invention, the same third party service provider generates and processes the VAT invoices for both the customer and supplier.

[1016] In order for a servicer to generate and process VAT invoices, the servicer preferably provides a complete invoice that complies with regulatory requirement, provides certification for the invoicing process, and provides storage and accessibility for the completed invoices in accordance with application regulations. These requirements are described in more detail below. Certification

[1017] In cases where VAT invoices are transmitted using electronic means, authenticity and integrity of the invoice data transmitted need to be guaranteed. Following the European Directive on VAT Invoices (Council Directive 2001/115/EC of 20 December 2001 amending Directive 77/388/EEC with a view to simplifying, modernizing and harmonizing the conditions laid down for invoicing in respect of value added tax Official Journal L 015, 17/01/2002 P. 0024 - 0028) Member States have the ability to require an electronic signature be based on a qualified certificate which is created by a secure-signature-creation device. [1018] Security is required in the receipt, storage, and processing of electronic invoice records to maintain the following qualities of those records: [1019] • Authenticity

[1020] • Integrity

[1021] • Confidentiality

[1022] • Non-repudiation

[1023] Authenticity

[1024] People typically rely on the signature on a paper document to establish its authenticity. Authenticity is the confirmation that a document is what it claims to be, authored by the person who purported to author it, and expressing the intent of the author. In electronic documents, electronic signatures serve the same purpose.

[1025] An electronic signature expresses the intent of the signing party to represent his identity and his endorsement of the contents of the document for the purposes indicated in the document. The signature may be: [1026] • Basic Electronic Signature such as a series of characters chosen by the author to express his or her identity and the intent to sign that document or [1027] • Enhanced Electronic Signature associated with the document. In this case, the intention to use the Enhanced Electronic Signature is added to the text of the document. [1028] Integrity

[1029] Integrity means ensuring consistency of data; in particular, preventing

(including detecting) unauthorized alteration or destruction of data. Maintaining the integrity of invoices is essential for ensuring the protection of all parties. For these reasons, checks and balances must be in place to assure the preservation of the integrity, authenticity and trustworthiness of the records over time. This may be accomplished by managing and protecting the electronic records from any loss, removal, or unauthorized alteration or destruction. Since evidence of record tampering may not be as readily identifiable with electronic records, as it might be with paper records, it is even more important that the controls are in place to adequately protect and preserve the electronic record. [1030] Confidentiality - Encryption

[1031] Preferred designs for the receipt, generation, storage, processing and transmission of the electronic records will take all reasonable steps to enable maintaining the confidentiality of the electronic records. Preferred implementations will protect the metadata concerning the electronic records. The confidentiality of the connection will be protected using encryption technology during transmission. [1032] Non-repudiation

[1033] This ensures that strong and substantial evidence is available to the sender of data that the data has been delivered (with the cooperation of the recipient), and, to the recipient, of the sender's identity, sufficient to prevent either from successfully denying having sent or received the data. This includes the ability of a third party to verify the integrity and origin of the data. Completeness

[1034] Taxing authorities, such as the EU, typically have specific requirements about the data elements required for a VAT invoice. If a VAT invoice sent to a corporation does not contain the complete set of elements, the VAT invoice will not be accepted as a valid VAT invoice - neither from the receiver of the invoice nor from the taxing authorities. [1035] Under EU regulations, to be considered a complete VAT invoice that is liable for payment, the invoice must include: [1036] • The date of issue;

[1037] • A sequential number, based on one or more series, which uniquely identifies the invoice;

[1038] • The VAT identification number under which the taxable person supplied the goods or services;

[1039] • Where the customer is liable to pay tax on goods supplied or services rendered or has been supplied with goods as referred to in Article 28c(A), the VAT identification number under which the goods were supplied or the services rendered to him;

[1040] • The full name and address of the taxable person and of his customer;

[1041] • The quantity and nature of the goods supplied or the extent and nature of the services rendered;

[1042] • The date on which the supply of goods or of services was made or completed or the date on which the payment on account was made, insofar as that date can be determined and differs from the date of issue of the invoice;

[1043] • The taxable amount per rate or exemption, the unit price exclusive of tax and any discounts or rebates if they are not included in the unit price;

[1044] • The VAT rate applied;

[1045] • The VAT amount payable, except where a specific arrangement is applied for which the Directive excludes such a detail;

[1046] • Where an exemption is involved or where the customer is liable to pay the tax, reference to the appropriate provision of the Directive, to the corresponding national provision, or to any indication that the supply is exempt or subject to the reverse charge procedure;

[1047] • Where the intra-community supply of a new means of transport is involved, the particulars specified in Article 28a(2) of the Directive;

[1048] • Where the margin scheme is applied, reference to Article 26 or 26a, of the

Directive, to the corresponding national provisions, or to any other indication that the margin scheme has been applied; and

[1049] • Where the person liable to pay the tax is a tax representative within the meaning of Article 21(2) of the Directive, the VAT identification number of that tax representative, together with his full name and address. Storage and Accessibility

[1050] According to the EU Directive on VAT Invoices, every taxable person shall ensure that copies of VAT invoices issued by himself, by his customer or, in his name and on his behalf by a third party, and all the VAT invoices which he has received, are stored. The Member States determine the period for which taxable persons must store VAT invoices relating to goods or services supplied in their territory and VAT invoices received by taxable persons established in their territory. In many cases, the required storage time is 10 years. In addition, Member States may require online access to these archived VAT invoices. [1051] A preferred embodiment meets all the criteria for VAT invoice described above and complies with EU directives on VAT invoices. The steps of a preferred process are described below. The process preferably is performed in order to ensure that each requirement is met prior to the customer receiving the VAT invoice. VAT Invoice Creation and Preferred Processing Steps

[1052] In the embodiment described below, the supplier is a law firm that provides legal services and the customer is a corporation that purchases the legal services of the law firm. A third party service provider processes the invoice as agent for the law firm and as agent for the corporation.

[1053] Steps 1-9 of FIG. 2 show conceptually a preferred embodiment of a VAT invoice process in accordance with the invention. The steps are described at a conceptual level to facilitate understanding, and persons of skill on the art will be able to implement the steps in specification described. The embodiment described in FIG. 2 shows the steps performed by a supplier, such as law firm 202, a customer, such as corporate client 204, a third party service provider 206, and a Certificate Authority or Trust Authority 208.

Step 1: Establish third party service provider 206 as service provider for both parties [1054] In step 1, the supplier, law firm 202, establishes in block 212 a legal relationship with the third party service provider allowing the third party service provider to assemble invoice data, create the VAT invoice, transmit the VAT invoice to the customer, and archive VAT invoices on its behalf. The customer, that is, corporate client 204 also establishes in block 214 a legal relationship with the third party service provider to receive VAT invoices from the supplier 202 and to archive the VAT invoices on its behalf. Step 2: Upload data elements by law firms onto third party service provider 206 server [1055] Law firm 202 uploads in block 216 data elements relevant to the creation of the VAT invoice onto the third party service provider 206 server 132, and the data is stored in memory 134. A unique reference ID is assigned by the third party service provider 206 to uniquely identify the uploaded data. The information uploaded by the law firm typically includes detailed narrative describing the work performed, the attorney or other timekeeper who performed the work, the billing rate of the timekeeper, the date the work was performed, and the matter to which the work is related. The data elements are typically uploaded in a recognized industry standard format for electronic invoices, such as one of the Ledes standards, such as Ledes 98, Ledes 98Bi (international format) or Ledes 2000 (XML based). The VAT invoice processing program 138 running on the third party service provider 206 server 132 optionally runs a verification program that reviews the data elements for compliance with formatting requirements and with rules established by the client. If the data elements fail to comply with the rules, the law firm 202 is notified of the non-compliance, and can resend the data elements. The rules may specify, for example, maximum billing rates for specific timekeepers, which timekeepers authorized to work on specific matters, the use of a specific set of billing codes, the presence of an invoice number, invoice date etc. [1056] After the data elements are verified, the VAT invoice processing program 138 converts the required data elements into XML format of a draft invoice, in accordance with LEDES 2000 ("L2k"), which is a legal industry standard for electronic invoicing. [1057] In some embodiments, the draft invoice is forwarded to the client for review.

The review can be automatic, such as by using the AIMS program and the GUIDE program, both available from third party service provider 206. The review can also be semi-automatic or manual. If any portion of the invoice is disputed by the corporation, it and the law firm can negotiate a mutually agreeable payment amount before the official VAT invoice is created. The draft invoice does not initiate liability for the VAT. After the formal VAT invoice is created, the obligation to pay the VAT is incurred, and altering the invoice would then require filing an amended reporting. By negotiating before the VAT invoice is created, the requirements to file a first invoice and then an amended invoice is eliminated.

Step 3: Assemble data elements by third party service provider 206 to create VAT invoice

[1058] At the appropriate time, a VAT invoice gets created in step 220 from the draft invoice, in a manner that ensures compliance with the requirements of the relevant tax regulations with regards to the content. For example, the data from the source file may be combined with information from a database at third party service provider 206. Such information may include, for example, the VAT identifiers of the law firm and client and the billing entity code where the work is considered to be performed. In Europe, where different Member States may have different requirements for the contents of VAT invoices, the invoice created in this step is preferably a superset that satisfies all the Member States. FIG. 4, described in more detail below, shows the content of a typical VAT invoice.

Step 4: Sign and archive VAT invoice on behalf of the sender by third party service provider 206 or its agent

[1059] By acting as the agent for both the law firm and the client, third party service provider 206 relieves the law firm and the client from having to deal with obtaining and verifying electronic signatures.

[1060] In this step, third party service provider 206 creates in block 224 a "VAT

Invoice File" which is preferably comprised of three distinct data elements: [1061] 1. Hash of source file - The source file originates at the sender law firm. The file is most often submitted in the LEDES 1998 B standard format or the international version LEDES 1998 BI. The hash file is typically a "one way," hash, that is, a hash that cannot be used to recovery the source file, but that can be used to verify a copy of the source file. This is used for non-repudiation purposes to uniquely link the VAT invoice to the submitted data elements in the source file.

[1062] 2. Data elements necessary for VAT (transaction details)

[1063] 3. Hash of L2k document - The document is a translation of the source file that is sent to the corporate client for processing and payment. This is used for non- repudiation purposes to uniquely link the VAT invoice to the transformed data elements in the translated file.

[1064] These hash values are placed in an XML file and electronically signed by third party service provider 206 or its agent on behalf of the sender.

[1065] An alternate embodiment is to have the draft invoice be electronically signed by third party service provider 206 or its agent on behalf of the sender to represent the VAT Invoice file.

[1066] In one embodiment, third party service provider 206 securely transmits in block 226 the unsigned VAT Invoice File to a recognized certification authority to electronically sign and verify; the signed document is retrieved by third party service provider 206, archived on behalf of the law firm and the client, and made available to either parties upon request. In other embodiments, either signing, verifying, or both, can be performed by third party service provider 206.

[1067] Communications between third party service provider 206 and the certifying authority are secured using globally unique identifiers (GUIDs). For example, before sending an invoice for certification, third party service provider 206 generates a GUID and informs the certifying authority of the GUID. The certifying authority uses the GUID to verify that the party communicating is third party service provider 206. After a handshake is complete, the VAT invoice is transmitted. Every file has a unique GUID and each GUID is used only once to prevent sending duplicate files.

[1068] FIG. 3 shows the process of communicating between the third party service provider 206 and the trust authority 208 in accordance with one embodiment. In block 310, the VAT invoice processing program 138 sends a global unique identifier (GUID) to the Trust Authority 208. In block 312, VAT invoice processing program 138 sends the trust authority the necessary VAT Invoice file, preferably in an XML format. In step 320, the Trust Authority returns a second GUID verifying the connection and receipt of the VAT Invoice file. In block 322, the Trust Authority places the VAT elements in a queue to be electronically signed. In block 324, the Trust Authority electronically signs the VAT invoice. In block 326, the Trust Authority verifies the signature and validates the certification used for signing.

[1069] In block 340, third party service provider 206 authenticates at the Trust

Authority and checks the list of items in the outgoing queue. In block 343, third party service provider 206 picks up the signed VAT invoices from the outgoing queue, and in block 344, third party service provider 206 deletes the VAT invoice, GUID, and signature from the outgoing queue.

Step 5: VAT invoice virtually transmitted and received on behalf of the sender and recipient, respectively, by third party service provider 206

[1070] The electronically signed VAT Invoice File is sent and received by third party service provider 206 in block 230 on behalf of the sender and the recipient, respectively, of the VAT invoice. Without a third party service provider acting as agent for both the law firm and the client, the law firm would transmit the certified invoice to the client over transmission lines, for example, by a web download or by e-mail. Because third party service provider 206 is the agent for both, the file does not need to be physically transmitted and received, but can be legally considered to have sent and received. When third party service provider 206 receives the signed VAT Invoice file back from the signing authority, the file can be considered to be received by the client.

Step 6: Verification of electronic signature on behalf of recipient of VAT Invoice by third party service provider 206 or its agent

[1071] On behalf of the VAT invoice recipient, the electronic signature of the signed

VAT Invoice File is verified in block 232 by third party service provider 206 or its agent and a verification protocol is issued and attached to the signed VAT Invoice File. A verification protocol is the verification that the certificate was valid and that no data have been altered when invoice was received. If there were not a common agent, the electronic signature would be verified by the client by confirming with the certifying authority that the signature is genuine. In a preferred embodiment, the verification of the electronic signature is performed for third party service provider 206 by the certifying authority, and the authentification protocol is transmitted to third party service provider 206 for archiving, along with the signed file.

[1072] While the electronic signature and verification can be performed at the same time, the can also be performed at different times and by different entities.

Step 7: Archiving VAT invoice and verification protocol by third party service provider 206

[1073] All VAT invoice elements (VAT Invoice File, electronic signature and verification protocol of electronic signature) are stored and archived in block 234 by third party service provider 206 on behalf the recipient of the VAT invoice. References to the archived files are associated with both the law firm and the client in the third party service provider 206 database, so that the invoice can be referenced from the client records or from the law firm records. At any time, a client or firm may request a copy of their archived data. Third party service provider 206 will provide the data for a specific date range in an online or removable media (CD/DVD) form upon request. Alternatively, the VAT invoice elements can be stored on behalf of the third party service provider by the Trust Authority, as shown in optional block 235. Step 8: VAT Invoice data elements are transmitted by third party service provider 206 to corporate clients

[1074] The data elements of the issued VAT invoices are transmitted in block 236 by third party service provider 206 to the corporate clients for purposes of review, approval and payment (i.e., the invoice validation). The information sent to the corporation is usually in L2k format and is normally processed at the corporation using the Automated Invoice Management System (AIMS) system from DataCert, Inc. or it may be processed manually or using a different system.

Step 9: Retrieve VAT invoice data

[1075] Corporate clients and law firms can retrieve in block 240 validation reports at any time upon request. The electronically signed VAT invoice and all by-products of the signing process are archived and made available to the corporate client and the law firm upon request. As shown in FIG. 3, when a client requests a copy of the invoice in box 350, the Trust Authority verifies the signature and validates the certificate of the archived copy in box 352, and the copy of the invoice is sent to the client in block 354.

Implementation

[1076] While the steps described above show conceptually how the preferred embodiment works, the implementation details can vary from the conceptual steps. [1077] In a preferred embodiment, third party service provider 206 does not itself electronically sign the VAT Invoice File; third party service provider 206 sends the unsigned VAT Invoice File to the Certifying Authority, which provides the electronic signature and also the certification. Also, third party service provider 206 does not verify the electronic signature on the VAT Invoice File; the verification is performed by the Trust Authority, and third party service provider 206 downloads and archives the verification protocol along with the signed VAT Invoice File.

Signed VAT Data Elements

[1078] FIG. 4 shows a typical VAT invoice. The data elements making up the signed

VAT invoice are assembled from the following: [1079] Name and address of supplier

[1080] Name and address of customer [1081] Description of goods sold - A constant field with a phrase similar to "For legal services rendered"

[1082] Quantity - The quantity will be made up of the following:

[1083] Sum of fees

[1084] Sum of expenses

[1085] Grand total of fees and expenses

[1086] Delivery date - This will be the invoice end date provided in the header information of the invoice OR the max date for all of the line items

[1087] Date of invoice

[1088] VAT ID (of customer and supplier)

[1089] Invoice number

[1090] VAT rate

[1091] VAT amount

[1092] Taxable amount

[1093] Alternately, the entire L2K file with all the line item details may represent the

VAT Invoice that gets signed, certified, and archived. In this approach, elements at the line item such as timekeeper data, charge description, charge codes, rate, units, discount, tax rate and net amount are also included. Archived Data

[1094] The artifacts used in the creation of the VAT invoice are archived according to

Member States audit requirements. All artifacts are archived for a minimum of eleven (11) years and will be provided within three (3) business days upon request to third party service provider 206. The data elements archived are listed below:

[1095] The XML file containing the VAT required data elements (i.e. Transaction

Details).

[1096] The source file, for non-repudiation purposes.

[1097] The transformed invoice file, in embodiments in which the VAT Invoice file is different from the transformed invoice file, for non-repudiation purposes.

[1098] The digitally signed embodiment of the XML document that was sent

[1099] The files received from the certifying authority as part of the digital signature including:

[1100] Verification protocol in XML format [1101] The bootstrap certificate used to authenticate the connection

[1102] The signing certificate

[1103] The PKCS #7 signature

[1104] The original document sent to the certifying authority for signing

[1105] The invoice date

[1106] The date the VAT invoice was created

[1107] The GUIDs used to confirm the connection and the certifying authority receipt of the document to be signed.

Advantages of the Preferred Embodiment

[1108] In a preferred embodiment, a single servicer represents both the customer and the supplier. This reduces the time to certify the invoices and ensure the adherence to the complex compliance requirements for the numerous of local tax authorities. Without using a common representative, a law firm would send an invoice to the certifying authority to obtain a signature, check a queue to retrieve the signed invoice when issued, and send the invoice to the corporation. The corporation would then send the invoice to the certifying authority to verify the signature, and wait for confirmation. In the preferred embodiment, third party service provider 206 is the entity that receives the verification of the signature thereby reducing the complexity of interaction for its client.

Conclusion

[1109] When accepting VAT invoices, it is preferred that the corporation can verify the data was sent securely, confidentially, and maintained compliance with the applicable taxing authority regulations, such as the European Union's VAT Directive on VAT Invoices. [1110] Embodiments of the invention provide a complete solution to both the corporations and the vendor law firms sending VAT invoices. Using embodiments of the invention, corporate clients and their law firm vendors can be assured all of the general VAT compliance such as EU Directive on VAT Invoices requirements, as well as the legal requirements of Member States, are met. A preferred system integrates with all of the existing DataCert, Inc. tools and services for processing invoices.

[1111] By representing both sides of a secure document exchange, an agent is able to facilitate certification of the document exchange and preserve the record of the exchange, thereby relieving both of sides of much of the technical burden relevant of performing those actions. While an example is described above with the respect to the EU requirements for VAT invoices, the example can be readily adapted to comply with requirements in other jurisdictions. For example, the Organization for Economic Co-operation and Development (OECD) provides guidelines for tax regimes having requirement similar to those of the EU requirements, and the example describe above can be readily modified to comply with the a tax system based on the OECD guideline, or any other similar system. [1112] More broadly, the invention is applicable to any environment in which electronic documents are securely exchanged. For example, the invention might be useful for invoices on which taxes other than a VAT are assessed, or for documents unrelated to taxation, such as the exchange of product specifications, contract, or change notices between customers, contractors, particularly military contractor, and subcontractors. A third party service provider can be established as the agent for any two parties. The third party service provider receives an electronic document from a first party, the electronic document relating to a transaction between the parties. The transaction may be, for example, a sale or a contract to provide a service. The third party service provider obtains an electronic signature and certification for the document, either providing the signature and certification itself or through its agent, such as a trust authority. The third party service provider or its agent then archives the document, and provides it, along with the certification, to either party upon request.

[1113] Although the present invention and its advantages have been described in detail, it should be understood that various changes, substitutions and alterations can be made herein without departing from the spirit and scope of the invention as defined by the appended claims. Moreover, the scope of the present application is not intended to be limited to the particular embodiments of the process, machine, manufacture, composition of matter, means, methods and steps described in the specification. As one of ordinary skill in the art will readily appreciate from the disclosure of the present invention, processes, machines, manufacture, compositions of matter, means, methods, or steps, presently existing or later to be developed that perform substantially the same function or achieve substantially the same result as the corresponding embodiments described herein may be utilized according to the present invention. Accordingly, the appended claims are intended to include within their scope such processes, machines, manufacture, compositions of matter, means, methods, or steps. [1114] We claim as follows:

Claims

1. A method for electronically processing invoices for goods or services provided by a supplier to a customer, taxes being assessed by a taxing authority on the goods or services, the amount of the taxes related to the amount invoiced for the goods or services, the method comprising: establishing by a third party service provider an agent relationship with the supplier and with the customer; receiving by the third party service provider an electronic invoice from the supplier, the electronic invoice including relevant tax information required by the taxing authority to be presented on the invoice; transmitting by the third party service provider to an electronic certifying authority data corresponding to the relevant tax information; receiving from the electronic certifying authority a certified, electronically signed tax information data file corresponding to the relevant tax information; after receiving the certified, electronically signed tax information data file from the certifying authority, transmitting to the customer the electronic invoice; and storing the certified, electronically signed relevant tax information data file; the certified, electronically signed tax information data file being considered to have been sent by an agent of the supplier to an agent of the customer.

2. The method of claim 1 in which the tax information file data file is electronically signed by the electronic certifying authority

3. The method of claim 1 in which the tax information file data file is electronically signed by the third party service provider and certified by the electronic certifying authority.

4. The method of claim 1 in which transmitting by the third party service provider data corresponding to the relevant tax information includes transmitting a numeric value derived from the relevant tax information.

5. The method of claim 4 in which the numeric value comprises the result of applying a hashing algorithm to the relevant tax information.

6. The method of claim 4 in which the numeric value is sent to the certifying authority and the relevant tax information itself is not sent.

7. The method of claim 1 further comprising transmitting by the third party service provider to the electronic certifying authority data corresponding to the electronic invoice received from the supplier and data corresponding to the invoice transmitted to the customer.

8. The method of claim 1 in which receiving by the third party service provider an invoice from a supplier includes receiving an invoice in a first format from a law firm and in which transmitting to the customer the invoice includes transmitting the information to a client in a second format, the invoice in the first format and the invoice in the second format corresponding to the essentially same services performed by the supplier.

9. The method of claim 8 in which the first format complies with a version of LEDES 98 and in which the second format is an XML format.

10. The method of claim 8 in which transmitting by the third party service provider to an electronic certifying authority data corresponding to the relevant tax information includes transmitting data corresponding to the invoice in the first format and data corresponding to the invoice in the second format.

11. The method of claim 8 further comprising transmitting data corresponding to the invoice in the first format, data corresponding to the invoice in the second format, or data corresponding to the invoice in both formats to the certifying authority to provide certification of the information received from the law firm and transmitted to the client.

12. A method for electronically processing invoices for legal services on which value added tax is assessed by a taxing authority; establishing by a third party service provider an agent relationship with a law firm and a client; receiving by the third party service provider a first electronic invoice corresponding to billing information from the law firm, the invoice including transaction information required by the taxing authority to be included on the invoice; obtaining by the third party service provider an electronic signature and certification for a VAT invoice file including data corresponding to the transaction information; storing by the third party service provider or its agent the VAT invoice file; and after obtaining by the third party service provider an electronic signature and certification for a VAT invoice file, transmitting to the client a second electronic invoice corresponding to the billing information.

13. The method of claim 12 in which the second invoice includes essentially the same billing information as the first invoice, the second invoice being in a format different from the format of the first invoice.

14. The method of claim 12 in which transmitting to the client a second electronic invoice corresponding to the billing information comprises transmitting the VAT invoice file.

15. The method of claim 12 in which the obtaining by the third party service provider an electronic signature and certification includes the third party service provider electronic signing the VAT invoice file or a certifying authority electronic signing the VAT invoice file.

16. The method of claim 12 in which obtaining by the third party service provider an electronic signature and certification for a VAT invoice file includes obtaining an electronic signature and certification for a VAT invoice file comprising a hash of the transaction information.

17. The method of claim 12 in which obtaining by the third party service provider an electronic signature and certification for a VAT invoice file includes obtaining an electronic signature and certification for a VAT invoice file comprising the transaction information.

18. The method of claim 12 in which obtaining by the third party service provider an electronic signature and certification for a VAT invoice file includes obtaining an electronic signature and certification for a VAT invoice file comprising hashes of the transaction information, the first electronic invoice and the second electronic invoice.

19. The method of claim 12 in which obtaining by the third party service provider an electronic signature and certification for a VAT invoice file includes obtaining an electronic signature and certification for a VAT invoice file comprising a hashed representation of transaction information, the first electronic invoice and the second electronic invoice.

20. A computer programmed to execute the method of any of the above claims.

21. A computer readable media including computer executable instructions for carrying out the steps of any of claims 1-19.

22. A method for processing electronic documents provided from a first party to a second party, the method comprising: establishing by a third party service provider an agent relationship with the first party and the second; receiving by the third party service provider an electronic document from the first party, the electronic document including first information to be verifiably electronically processed; transmitting by the third party service provider to an electronic certifying authority data corresponding to the first information; receiving from the electronic certifying authority a certified, electronically signed information data file corresponding to the first information; after receiving the certified, electronically signed information data file from the certifying authority, transmitting to the second party data corresponding to the first information; and storing the electronically signed information data file corresponding to the first information; the certified, electronically signed tax information data file being considered to have been sent by an agent of the supplier to an agent of the customer.

23. The method of claim 22 in which the first party is a law firm, the second party is a client, and the electronic document including first information to be verifiably electronically processed includes an invoice to be processed to comply with VAT requirements.

24. A method for electronically processing documents between entities to ensure document security; establishing by a third party service provider an agent relationship with a first entity and a second entity; receiving by the third party service provider a first electronic document from the first entity, the electronic document including information related to a transaction between the first and second entity; obtaining by the third party service provider an electronic signature and certification for the document or for information derived from the document; storing by the third party service the signed document or information derived from the document; and after obtaining by the third party service provider an electronic signature and certification for document or information derived from the document, transmitting the document to the second entity.

25. The method of claim 24 in which receiving by the third party service provider a first electronic document from the first entity includes receiving a product specification related to a transaction between the first and second entity

26. The method of claim 24 in which receiving by the third party service provider a first electronic document from the first entity includes receiving a contract related to a transaction between the first and second entity.