What is a Qualified Electronic Signature?EU Qualified Electronic Signature Regulations

With increasing cyberattacks, signing documents electronically has become more critical than ever. According to a report, the global digital signature market is expected to reach $14.1 billion by 2026.

Electronic signatures are of different types, defined under the eIDAS Regulation. The Qualified Electronic Signature (QES) stands out as the gold standard for security and legal recognition.

But what exactly is a QES, and why is it so important? Let’s dive into the details.

What is a Qualified Electronic Signature?

Qualified Electronic Signatures or QES are advanced electronic signatures accompanied by a qualified cert to ensure strict levels of originality and authenticity. It verifies the signer’s identity with the legitimacy level that matches the legal value & effect of a traditional handwritten signature in Europe.

QES is built using a Qualified Electronic Signature Creation Device (QSCD) and based on a qualified certificate issued by a certified or trusted certificate authority (CA).

Now, QES are of different types. Read on to find out.

Types of Electronic Signature

Simple or Standard Electronic Signatures (SES)

This is the most basic form of electronic signature that requires no registration. This is more like a scanned signature or a typed name at the end of an email.

Advanced Electronic Signatures (AES)

Advanced electronic signatures require additional user authentication. For instance, the user may be asked to show a valid identity, pass biometric detection checks, or enter a unique access code. Also, it incorporates digital identity and relies on international standards.

Qualified Electronic Signatures (QES)

According to the Industry Working Group on Electronic Execution of Documents report, Qualified Electronic Signatures offer the highest level of assurance with a face-to-face or equivalent ID verification process by a Qualified Trust Service Provider or CA. In short, QES is the most secure and legally binding form.

Also Read: Digital Signature vs Electronic Signature

EU Qualified Electronic Signature Regulations

What is the eIDAS Regulation?

The eIDAS Regulation, officially called Regulation (EU) No 910/2014, started on July 1, 2016. This rule is mandatory and applies equally in all EU countries to avoid national law conflicts.

Also Read: eIDAS 2.0: Future of Digital Identity for Better Web Security

Replacing the eSignature Directive (1999/93/EC), eIDAS establishes a comprehensive EU-wide legal framework for electronic signatures and a variety of newly defined electronic “trust services.”

Electronic Signature Regulations in the EU

The eIDAS or EU Regulation defines three different types of e-signatures or electronic signatures, i.e.,

• Electronic signature: A signer can apply this e-signature form to a document as evidence of their acceptance or approval.

• Advanced electronic signature: Provides a superior signer ID verification, security, and tamper-sealing level.

• Qualified electronic signature: This e-signature has a special legal status in EU member states and is the legal equivalent of a written signature.

Legal Implications

• eIDAS guarantees that all electronic signatures are admissible as evidence in EU courts and cannot be dismissed just because they are electronic.

•  Article 25 (2) of eIDAS states that a qualified electronic signature is legally the same as a handwritten signature and is accepted in all EU member states.

• Whether a transaction signed electronically is enforceable depends on several factors, such as the type of signature and the details it includes.

• eIDAS does not say when a signed. Each EU member state decides in its laws when:
  • A nature is needed for a transaction, or what type of signature is required, a transaction cannot be signed electronically or
  • A higher form of electronic signature is needed, like an advanced or qualified one.

Disclaimer: The legal implications mentioned here are for only educational purposes and are not intended to be legal advice. Consult a legal authority regarding your specific legal questions.

What are the eSignature Assurance Levels Under eIDAS?

The Level of Assurance or LoA under eIDAS is a criterion that evaluates authentication methods’ strength and is used to verify a user’s digital identity.

Now, there are three levels of assurance:

Low:

It offers a basic level of security and verification and is suitable for low-risk scenarios.

For instance, a simple electronic signature (like a typed name or checkbox) is enough when subscribing to an online newsletter because the associated risk is very low.

Substantial:

It requires identity validation, like a one-time password or remote verification, and is suitable for medium-risk scenarios.

For instance, an advanced electronic signature (AES) might be used when signing an employment contract. It detects alterations if made to the document.

High:

It required the highest level of security and verification, such as identity verification, face-to-face or biometric match with multifactor authentication.

For instance, critical transactions require maximum trust and legal certainty, such as legal documents, high-value contracts, and sensitive personal data exchanges.

The above levels align with Levels 2, 3, and 4 of the ISO 2915 definitions, respectively.

What’s the Difference between Advanced and Qualified Signatures in eIDAS?

Here’s the head-to-head difference between Advanced and Qualified Signatures in eIDAS.

Parameter	Advanced Signature	Qualified Signature
Identity verification	Requires unique identification but less stringent verification	Requires identity verification through a qualified certificate issued by a trusted CA
Signature creation device	No specific device is required; uses digital signing software	Must be created using a Qualified Signature Creation Device (QSCD)
Security level	Good security level but not device-specific	Highest security level, protects against tampering and forgery
Legal standing	NA	Same legal standing as a handwritten signature, recognized across all EU member states.
Common uses	Medium-risk transactions	High-risk, high-value transactions
Issuance	Trust Service Providers can issue AES	Only Trust Service Providers that are certification authorities can issue QES.

Standard Electronic Signature vs. Qualified Electronic Signature

Here’s the head-to-head difference between standard electronic signatures and qualified electronic signatures in eIDAS.

Parameter	Standard Signature	Qualified Signature
Trustworthiness	Less trusted compared to QES, as it doesn’t require strict verification processes.	High trust level, as it meets the most stringent requirements under eIDAS.
Signature creation requirements	No specific requirements for creation. Can be as simple as a scanned signature or a click-to-sign feature.	Must be created using a QSCD or qualified signature creation device and should be based on a qualified certificate issued by a QTSP or qualified trust service provider.
Security measures	Not standardized, weak, and can be ​​easily forged.	Strong security measures mandated
Use cases and applicability	Suitable for low-risk transactions and internal documents	Essential for high-risk transactions, such as legal contracts, government filings, and financial agreements.
Legal standing	NA	Same legal standing as a handwritten signature, recognized across all EU member states

When are Qualified Electronic Signatures most commonly used?

Below are some of the use cases for qualified electronic signatures.

Confirming Document/Message Origin:

QES is used to sign official government documents and applications. It ensures the authenticity and integrity of sensitive governmental communications and transactions.

Signing Declarations or Mandates:

Individuals sign declarations for accountants or relatives or submit mandated declarations to the government.

Signing Commercial Proposals:

Businesses signing proposals or offers for their clients or participating in government eProcurement processes.

Signing Official Documents/Attestations:

Signing e-permits, residency attestations, VAT attestations, and customs documents.

Signing Legal Consents/e-Mandates:

Agreeing to terms and conditions when becoming a bank client or authorizing an accountant to handle financial transactions for you.

Signing Contracts:

Signing rental or purchase agreements, insurance contracts, or starting a government project.

The Bottom Line

Here we go! In a nutshell, qualified electronic signatures provide the highest level of security and legal recognition for digital transactions. If you are doing any transaction that is sensitive and involves a huge risk, make sure to use QES.

Frequently Asked Questions

What is the difference between electronic signatures and digital signatures?

An electronic signature is the electronic replacement of a handwritten signature. On the other hand, digital signatures use cryptographic methods and public key infrastructure to secure or authenticate the signature.

Are Qualified Electronic Signatures legally binding?

Absolutely, yes! Qualified Electronic Signatures are legally binding under the eIDAS Regulation (EU) and recognized across all EU member states.