Compliance Services

Further to our previous post, we wanted to remind you that e-invoicing has now commenced at the turn of the year in Paraguay.

The following link will provide further information, including the plans for phased implementation:

https://ekuatia.set.gov.py/portal/ekuatia/normativas/resoluciones

Invoices will need to be generated in XML format with a digital signature, with an archiving requirement of 5 years.

New governments often herald the introduction of widespread new fiscal policies.

President Lula’s recent appointment in Brazil is expected to be synonymous with the introduction of colossal VAT reforms in Brazil.

Arguably, this is needed- Brazil has one of the most complex indirect tax regimes in the world, and so a significant part of this change would be the simplification of the tax process in the country.

Some proposals put forward as part of this simplification process include:

• A sub-national VAT on goods and services
• A second VAT tax at federal level.

E-invoicing momentum is accelerating in South America, and Tungsten is keeping abreast of e-invoicing developments in the region. We will closely monitor e-invoicing developments in Brazil.

Law 31651 in Peru has permitted VAT exemptions for a whole host of goods and services. The following list covers some of the goods and services afforded with new VAT concessions:

• Sale or import of certain goods (certain fish and vegetables)
• Public transportation services, with a few exceptions
• Cargo transportation services
• Live cultural shows

Law 31651 was due to expire on 31 December 2022 but has now been extended to 31 December 2025.

The Polish e-invoicing guidelines published at the end of 2022 confirmed a start date of 1 January 2024 for the Polish e-invoicing mandate.

The Polish Ministry of Finance has now confirmed a delay to the commencement of the e-invoicing mandate in Poland, to 1 July 2024.

It appears that there will be changes introduced to the scope of e-invoicing in Poland, including the obligation for exempt taxpayers to use the KSeF e-invoicing platform from 1 January 2025, as well as potential obligations relating to cross-border transactions.

We are expecting further details confirming the scope, alongside other changes, later this year. We will assess the new scope of the mandate, once confirmed, as well as any other changes introduced in the final publication of the changes and will be ready to support the new mandate in line with the revised timeframe of July 2024.

The Plastic Packaging Tax (PPT) was effective in the United Kingdom from 1 April 2022.

HMRC had indicated that inclusion of PPT would be mandatory at some point on a UK invoice. However, they have now reversed this decision and indicated that they will no longer adopt a legal requirement to include PPT on a UK invoice.

HMRC will still encourage businesses subject to the tax to incorporate PPT in their invoices. HMRC will also provide other methods of providing the tax on documents other than the invoice (such as price lists, for example). Spain last month introduced a similar incentive, allowing taxpayers to cite PPT on an invoice, bit also permitting for this to be communicated via a certificate.

Tungsten has the capability to support PPT today. Unlike Spain, PPT in the UK is usually subject to negotiations between the supplier and the buyer.

The eight-week feedback period for the public consultation relating to the VAT in the Digital Age proposal (ViDA) is being extended every day until the adopted proposal is available in local language – extension for the feedback period now already exists until 21 March 2023.

Feedback can be submitted via the following link:

https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13186-VAT-in-the-digital-age_en

Law 31/2022, dated 23 December 2022 on the General State Budget for 2023, introduced multiple VAT changes, alongside other modifications. Changes include:

• Amendments to the reverse charge on certain property related transactions and supplies of waste and scrap plastic and textiles;
• changes to ‘use and enjoyment’ provisions;
• new rules on claiming VAT bad debt relief.

‘Use and enjoyment’ provisions typically refer to the rule that determines the place of supply of a service, based on the use of such a service.

Royal Decree Law 20/2022, dated 27 December 2022, extends, until 31 December 2023, the 5% VAT rate on certain supplies of electricity, and supplies of natural gas, briquettes and pellets from biomass, and wood for firewood used as fuel.

The VAT rate on several basic food products has been temporarily reduced from 4% to 0%, and from 10% to 5% on olive and seed oils and pasta until 30 June 2023 (subject to certain conditions).

Finally, specified existing reliefs relating to Covid crisis have also been extended until 30 June 2023.

On 31 December 2022, decision A.1188/2022 was released by the Greek Tax Authority (IAPR). The decision establishes significant changes relating to the transmission deadlines and sector-specific requirements relating to electronic data transmission to the IAPR.

The below provides a summary of the main changes within the decision:

• Real-time transmission through ERPs: the transmission of data and documents through business management programs will be undertaken in real-time from 1 January 2024
• QR Code: the accounting data using business management programs or the application for issuing and transmitting data on the IAPR website (timologio) could be used to generate a QR code. This QR code should generally contain a link for direct access to a digital service of the myDATA digital platform and will provide an overview of the transmitted document summary
• E-Invoice Service Provider: for certain transactions, the adjustment stage for businesses who opted to issue and transmit documents through an e-invoicing service provider to comply with the MYDATA obligation has been extended for 6 months.

The below link (in Greek) encompasses all the MyData changes:

https://www.aade.gr/sites/default/files/2023-01/dt_30.12.2022..pdf

Tungsten has been monitoring the RO e-transport System in Romania. You can read an overview of the System here.

ANAF/AVR joint order no. 1190/4625/2022 has approved the operating rules of the national RO e-Transport System and the categories of road vehicles used for the transport of goods with high fiscal risk that are subject to monitoring. The reporting of data on the road transport of goods with high fiscal risk became mandatory on 1 July 2022.

Inevitably, there will be situations where both goods with high-fiscal risk are transported together with goods not categorised as such. If both goods with a high fiscal risk and other goods are transported within a commercial relationship, all categories of transported goods will be declared in the RO e-Transport System, and the system will generate a single UIT code. In the case of groupage transport, the UIT codes will be noted on the transport documents related to each commercial relationship that includes goods with high fiscal risk.

Through Minister of Finance (OMF) Order no. 1667/2022, some changes were made to the procedure for using and operating the national RO e-Invoice electronic invoice system, as well as the receipt and downloading of the electronic invoice by recipients in a B2G environment.

OMF no. 1667/2022 has introduced the following modifications:

• The recipients of electronic invoices issued in B2G relationships must receive and download e-invoices by accessing the electronic invoice section available in the virtual private space (SPV) on the ANAF portal. The contracting authorities and entities access the system through the ‘Single Access Point’ on the Ministry of Finance’ website through the Forexebug national reporting system, section ‘View reports’ − ‘Electronic invoices’
• Any taxpayer registered as a user in the SPV or with the role of viewing reports in the Forexebug national reporting system can receive and download e-invoices in the B2G environment
• For correcting electronic invoices issued in the B2G environment, and where the recipient has objections, the recipient will notify the issuer of the electronic invoice, including through the Electronic Invoice section available in the SPV or through the Forexebug national reporting system.

For B2B e-invoicing in Romania, please refer to our most recent update here.