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SEPA

SEPA

Single Euro Payments Area (SEPA)

  • Payments in euro are made in accordance with uniform rules and payment standards
  • Payments in the euro within the EU countries are made faster and at considerably lower fee than to other countries or in other currencies
  • Single-format payment order and statement of account

SEPA area consists of 34 states: all the EU Member States, Norway, Iceland, and Lichtenstein, the Principality of Monaco, Switzerland and San Marino.

Reasons for creating SEPA

Introduction of a common currency – the euro – brought about a need for the European Union countries to have a simplified way for cross-border payments in euro, therefore, the European Parliament and the Council of the European Union issued regulation No. 260/2012 (the ‘SEPA regulation’) establishing a common standard for payments in euro (for domestic and cross-border payments as well as for direct debit transactions), within the European Union countries.

Lithuania must be SEPA compliant starting on 1 January 2016.

Key changes for enterprises

  1. Domestic payments in euro will be replaced with SEPA payments – it means that some payment order form fields will change.
  2. Data exchange message formats will also change – LITAS ESIS format will be replaced with ISO 20022 XML.
  3. Direct debit service will be replaced with an e-invoice submitting and payment service.

How to get ready for the SEPA regulation implementation period?

  1. Get in touch with your IT unit or your company’s software vendor and ask to adjust your accounting software for ISO 20022 XML format and for e-invoice delivery and payment service, if needed.
  2. Plan resources and time for the implementation of these changes.
  3. Inform your customers, your staff and business partners about changes, if needed.

For more detailed information about the changes related to SEPA Regulation implementation, contact your client executive at SEB Bank, call at +370 5 268 2822 or visit any SEB Bank unit you prefer.

SEPA payment is payment in euro to one’s own or to other persons account with SEB or other banks in Lithuania or in any other country within the European Economic Area.

SEPA payment advantages

  • Domestic payments in euro within Lithuania and to other European Union countries are made using the same payment order form – it makes administration easier, as money transfer does not require classifying it as a domestic or a cross-border payment.
  • Payments in euro within Lithuania and to other European Union countries are made faster and at a lower fee than to other countries or in other currencies.
  • More possibilities to provide payer and payee data.
  • Payments to other European Union countries do not require indicating correspondent bank or payee bank BIC code.

Payment form fields – domestic payment in euro vs. SEPA payment

 
Domestic payment in euro
(until 31 December 2015)
SEPA payment in euro
(starts on 1 January  2016)
Payer and payee name 200 symbols 70 symbols
Payer and payee identifiers
One or both of following two indicators included in the offered list is/are provided:
  • natural or legal person’s ID number
  • customer code in  the payer or payee IT system

 

From the list provided, one identifier type is chosen and its number or code is entered:

  • natural or legal person’s ID number
  • customer code in the payer’s or payee’s IT system
  • VAT payer code
  • social security number
  • etc.
Payer and payee addresses 140 symbols
Payment  purpose 300 symbols 140 symbols
Once this field is filled out, it will not be possible to provide information in the payment code field
Payment code 16 symbols 35 symbols, information is provided in a standard form
Once this field is filled out, it will not be possible to provide information in the payment purpose field
Payment document number 10 symbols 35 symbols
Number used for the identification of a payment transaction is sent to the payee without alterations
Instruction Identification 35 symbols
This number is not sent to the payee, therefore, the payer may use it only for its own needs

Useful information

  • Since 1 January 2016, payers will be able to make payments in euro to other EU countries without indicating the payee bank’s BIC (in a domestic payment form it is not indicated already today).
  • Payment order form will allow using Lithuanian alphabet letters, if payment in euro is made within Lithuania. In case of a cross-border payment within the EU, only Latin alphabet letters will be acceptable.

For more detailed information about the changes related to SEPA Regulation implementation, contact your client executive at SEB Bank, call at +370 5 268 2822 or visit any SEB Bank unit you prefer.

Currently, the company accounting software messages and the data exchange messages of the Internet Bank are sent in the LITAS ESIS format. Seeking to implement the requirements of the Single Euro Payments Area (SEPA), the above format will be changed by the ISO 20022 XML format.

Starting from 1 January 2016, the companies sending payment orders via the Internet Bank, will be required to use the ISO 20022 XML format messages and will be able to download  the statements of account in the above format from the Internet Bank to the accounting software.

Users of the ISO 20022 XML format messages will have an opportunity to:

  • automate the payment  order transfer to the bank
  • receive the statements of account from the bank for the specified period
  • receive the statements of account and sent the payment orders in the identical ISO 20022 XML format

Aiming to efficiently use the advantages of the ISO 20022 XML format, from 1 January 2016  it will be applied by AB SEB bankas for the transfers in the euro and also in other foreign currencies.

How to adapt software to the ISO 20022 XML format?

  1. Contact your company’s IT unit or the software provider and request them to adapt the accounting software to the ISO 20022 XML format.
  2. Allocate resources and time for implementation of the above changes.
  3. Inform employees about expected changes.

How to test the new upload method of files in the ISO 20022 XML format?

If you are willing to test the new file upload method and check whether your files in the ISO 20022 XML format are correct, you will need to:


 

How to execute the local payment orders in the ISO 20022 XML format?

  1. Issue a local payment order in the ISO 20022 XML format (ISO 20022 XML payment order sample)
  2. Upload the issued file to the Internet Bank (log in to the Internet Bank → Payments  Other  Payment file uploadFile upload)
  3. Check whether the payment orders are correctly submitted.
  4. Select the payment orders to be executed and confirm thereof by clicking on the "Confirm selected“ button.

How to receive the statement of account in the ISO 20022 XML from the Bank?

  1. Log in to the Internet Bank.
  2. Select menu item "Accounts and cards“ and click on menu item "Statements of Account“.
  3. Expand menu line "Filter“ and select the account(s), the statement(s) of which is required.
  4. Select the period and click on the "File order“ button.
  5. After opening a new window, select the XML (ISO2022) format and click on the "Confirm“ button.
  6. After 5–10 minutes you will find the statement of account in the in statement folder attached to the menu item "Statements of Account“.

If companies until 1 January 2016 fail to adapt their accounting software to the ISO 20022 XML format, they will be able to temporarily use the data format change service offered by the bank.

Usage rules of the SEB data exchange format based on ISO 20022 XML standard messages, v 2.5 (PDF, 249 KB)

ISO20022 XML SEPA payment order sample (pain.001)

ISO20022 XML SEPA payment order sample (pain.001)(all field file)

ISO20022 XML wage payment order sample (pain.001)

ISO20022 XML international payment order sample (pain.001)(in EUR)

ISO20022 XML international payment order sample (pain.001)(in British Pound)

ISO20022 XML ) international payment order sample (pain.001)(in Russian Roubles)


For more detailed information about the changes related to SEPA Regulation implementation, contact your client executive at SEB Bank, call at +370 5 268 2822 or visit any SEB Bank unit you prefer.

E-invoice is an electronic message to be sent to the service recipient (payer) instead of the paper invoice (VAT invoice).

To ensure that the e-invoices are conveniently submitted by the service provider and the service recipient, and conveniently paid by the service recipient, hereby we offer to use the e-invoice submission and payment service.

Advantages for service provider

  • Lower IT system installation and maintenance costs,  if you sign the E-invoice Agreement with AB SEB bankas  and the e-invoices will be submitted to all service recipients at all banks
  • Time-saving whereas the e-invoices are submitted in the identical xml format at all banks in Lithuania
  • Lower expenses whereas it is unnecessary to print and send the VAT invoices
  • Convenient whereas a detail report about services may be specified in the e-invoice
  • Easier to plan future income, whereas e-invoices may be paid up automatically

Advantages for service recipient

  • Convenient whereas the e-invoice may be reviewed and paid up automatically on a 24-hour basis
  • Secure whereas all e-invoices are submitted via the Internet Bank and nobody else, except the service recipient may review them
  • Time-saving whereas the service recipient may learn about the e-invoice after login to the Internet Bank
  • Convenient whereas the service recipient may select, whether to pay the e-invoice automatically, or after login to the Internet Bank. The payment order form will be filled out automatically after login to the Internet Bank, and you will have to click on the link "Pay“

How to order the e-invoice submission and payment service?

  1. Contact your Client Executive at AB SEB bankas or call at +370 5 268 2822.
  2. Sign the E-invoice Submission and Payment Service Agreement with AB SEB bankas
  3. Contact your company’s IT unit or software provider and request them to adapt the account software to the e-invoice
  4. Inform the service recipients, employees, business partners and other related parties about the new service.

The e-invoice technical documents (information updated on 11 August 2015), e-invoice submission rules for the payers and other related information is available on website www.lba.lt.


For more detailed information about the changes related to SEPA Regulation implementation, contact your client executive at SEB Bank, call at +370 5 268 2822 or visit any SEB Bank unit you prefer.

If you are willing to execute a standing payment order, please revise the data specified in such payment order and make amendments, if necessary, so that it meets the SEPA payment order requirements. The standing payment order fields, which do not meet the SEPA payment order requirements on 1 January 2016 will be shortened or deleted:

  • if the charge code and payment purpose fields are filled out, the payment purpose will be deleted
  • if only the payment purpose field is filled out, however it exceeds 140 symbols, information will be shortened
  • if the beneficiary’s name exceeds 70 symbols, it will be shortened
  • if the code of the beneficiary’s company or a private individual and the beneficiary’s code  in the payer’s code IT system are specified, the code of the beneficiary’s company or private individual will be deleted
  • if the payer’s code in the beneficiary’s IT system is specified, the code of the payer’s company or personal code will not be transmitted

We kindly request after 1 January 2016 to check whether all data important for the beneficiary is saved in the standing payment order, and if necessary, please make corrections in the payment order. Please contact the beneficiary, if any questions related to filling out the payment order fields arise.


For more detailed information about the changes related to SEPA Regulation implementation, contact your client executive at SEB Bank, call at +370 5 268 2822 or visit any SEB Bank unit you prefer.

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