SEPA – What is SEPA?
SEPA – short for the Single Euro Payments Area – is an EU initiative that aims to simplify cashless payments and bank transfers.
Do you buy or sell to other EU countries? Debitoor invoicing software is fully equipped for intra-community transactions. Try Debitoor for free.
The main aim of SEPA is to turn national Eurozone markets into a single, Europe-wide market by improving the efficiency of cross-border transactions.
How does SEPA work?
SEPA enables consumers, businesses, and public administrations to make credit transfers, direct debit payments, and credit card payments across Europe as easily as they can make domestic payments. SEPA only applies to payments or transfers made in euros.
Customers can make payments in euros to anyone in the participating countrie using a single bank account and following a single set of payment instructions. Anyone who has a bank account within a Eurozone country can receive salaries and payments across the entire Eurozone.
By introducing shared financial standards, procedures, and infrastructure, SEPA aims to reduce the overall cost of moving capital across the region.
Which countries are covered by SEPA?
The EU’s SEPA initative covers the 28 member states of the European Union, including the 19 states that are part of the Eurozone and the nine states that are not in the Eurozone.
SEPA also applies to the four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland), as well as Monaco and San Marino.
Some of the countries covered by SEPA have special territories, but SEPA does not apply in these territories. For example, while the UK is covered by SEPA, British Overseas Territories are not.
Cross-border transactions and Debitoor
Do you have customers in the EU? With Debitoor invoicing software it’s easy to send invoices abroad. Debitoor supports intra-Community transactions, meaning that any invoices you create with Debitoor comply with EU VAT regulations and the reverse charge procedure.
Plus, you can send invoices in different languages and currencies, making it even easier to reach customers around the world.