Compliance Category: Mandate information

KSA publishes its final e-invoicing regulation

As we reported before, Saudi Arabia is well on its way to mandatory electronic invoicing, only 4 years after the introduction of VAT in the Kingdom.

In autumn of 2020, KSA completed their public consultation regarding the planned e-invoicing regulation, followed by the approval of the GAZT board of directors of the final version of the regulations. This final version has been published in the official Saudi gazette on 4 December 2020 and entered into force immediately on the same day it was published. The regulations contain the framework of the e-invoicing mechanism GAZT is anticipating to apply and the expectation is that businesses in scope of the regulation will be able to comply by 4 December 2021.

While the timeline is very tight, not all details are clear, and it is expected that further details will follow prior to the effective date to help taxpayers comply with the new rules.

This is a tight timeline and businesses in the Kingdom should begin their implementations early in 2021. We see this as a unique opportunity for organisations to leverage digital technology and benefit from more streamlined tax operations.

Slovakia announces an e-invoicing/real-time reporting system

In a recent press release the Slovakian Tax authorities pointed at a new draft law on sending data to the Financial Administration. Please follow the link here for the full text.

The intention of the draft law is to introduce the obligation for all business entities to issue an invoice for each business transaction within a certain period of time. At the same time, invoice pre-clearance is also foreseen: the obligation to send specific invoice data to the Financial Administration before the final version of the invoice is prepared and sent to the buyer. Taxpayers can fulfil their invoice reporting obligations in various ways: using an e-invoicing service provider; directly from their accounting software/ERP using a certified communication method or using a free government portal. There will also be reporting obligations on the buyer.

Currently there is no more information or technical details available. We will continue to monitor Slovakia’s progress and report these in our upcoming e-invoicing updates.

Greece MyData: delayed again

Greece’s e-Invoicing and e-Books mandate, which was supposed to have started on January 1, 2020, has been delayed again. Under pressure of the COVID 19 economic impacts and following requests from the business community, Greece’s AADE has decided to postpone the compulsory usage of the MyData e-Invoicing and e-Books platform until April 2021. Also, the platform is still undergoing development. We are currently analysing the impact of this delay as companies can still voluntarily submit transactional data to the platform.

Looking at implementing e-invoicing via the National System of e-invoices (KSeF)

The Polish Ministry of Finance (‘MoF’) is looking into amending the VAT act by introducing the possibility of issuing electronic invoices next to the current paper and electronic invoices, via KSeF – the National System of e-Invoices. Next to the business benefits of e-invoicing (such as cost reductions, better transparency, and shorter payment cycles), there will be further advantages to the taxpayer such as a reduction of the deadline for VAT refunds from 60 to 45 days. The project is planned to commence in the first quarter of 2021. However, it seems that this system will be moved to mandatory usage later in 2022.

Still on track for mandatory e-invoicing and VAT e-reporting

Last November 24, the French DGFiP presented its report to external stakeholders that details the road to widespread use and adoption of electronic invoicing in France and the obligation to report VAT electronically as of 2023.

At the beginning of 2021, a “Project Department” will be set up within the DGFiP. This department will lead the next steps. In collaboration with the AIFE, further consultations, organised in “Working Groups”, with stakeholders, will be happening during 2021 to further detail requirements, best practices, and support structure alignment with the needs of companies.

Mandatory electronic invoicing

As stated before in our earlier update, the Kingdom of Saudi Arabia is making fast progress with the introduction of compulsory e-invoicing. The electronic invoicing system aims to drive down shadow economy transactions and to fight commercial concealment.

The Saudi General Authority of Zakat and Tax approved the new electronic invoicing regulation on Friday 4 December 2020. The electronic billing regulation contains seven articles that regulate the mechanism for issuing and keeping electronic invoices for taxpayers. The regulation also stipulates the procedural rules and timings, as well as further provisions, procedures and persons subject to these. Mandatory issuance of electronic invoices will commence from 4 December 2021; followed by mandatory invoice reporting to the government in June 2022.

For further information, please review the English version of the e-invoicing Regulations and FAQs as recently released by GAZT.

Postponement of single document code (‘ATCUD’)

In decree 195/202, the Portuguese Government announced the requirement for businesses to include a single document code (ACTUD) on invoices and other documents relevant for taxation by January 2021. This has now been delayed until 2022.

However, Ministerial Order nº 412/2020.XXI stipulates that the Portuguese Tax Authority should strengthen support for taxpayers in meeting the obligation to include a QR Code (Quick Response Code) on invoices from 01/01/2021.

Please follow the link here for the technical specifications of the QR Code.

Draft 2021 Budget Law drives changes to the e-invoicing mandate from 2022

The (draft) 2021 Budget Law will introduce changes to the Italian e-invoicing requirements, which will -in principle- come into effect from 2022:

  • Obligation to transmit transactions with non-residents (entities not established for VAT) to the Sistema di Interscambio (SdI). This in fact means that they cross-border reporting (Esterometro) will no longer be in use.
  • The FATTURA XML may see new fields and additional checks for supplies with declaration of intent.

Draft 2021 Budget Law drives changes to the e-invoicing mandate from 2022

The (draft) 2021 Budget Law will introduce changes to the Italian e-invoicing requirements, which will -in principle- come into effect from 2022:

  • Obligation to transmit transactions with non-residents (entities not established for VAT) to the Sistema di Interscambio (SdI). This in fact means that they cross-border reporting (Esterometro) will no longer be in use.
  • The FATTURA XML may see new fields and additional checks for supplies with declaration of intent.

Germany’s B2G e-invoicing approaches second phase

Germany has announced its schedule for mandatory B2G e-Invoicing. As April approaches, the second phase will come into action for the regional and communal levels. Tungsten is here to help – we can support your invoice delivery of the XRechung through our PEPPOL connection.

Click here to learn more about the German mandate.