Compliance Services

The technical documentation of the Suministro Inmediato de Informacion (SII), otherwise known as Spain’s immediate electronic reporting system for VAT in Spain, has been updated by Spanish tax authorities.  

Among the changes, adjustments have been made to benefit’s margin by adding the value AJ in the register of issued invoices. The new validations and errors which come with this new code have also been implemented in this updated version. The amendments will be effective from 1 January 2023.   

The documentation can be accessed via the following link:  

https://sede.agenciatributaria.gob.es/Sede/procedimientoini/G417.shtml  

We recently communicated that Luxembourg is introducing some new temporary VAT rates, effective 1 January 2023. Tungsten is on track to integrate the temporary rates within our system by this date. 

The Luxembourg Directorate of Registration, Domains and VAT has published Circular No. 812, dated 6 December 2022. This provides guidance around the temporary VAT rates. 

Tungsten has previously communicated on the upcoming proposed Swiss VAT rate increases expected in 2024.  

Switzerland has now confirmed new VAT rates in the country in line with the following: 

Normal rate 7.7% to 8.1% 

Reduced rate: 2.5% to 2.6% 

Special rate for accommodation services: 3.7% to 3.8% 

These will be effective from 1 January 2024.  

Switzerland is a compliant territory for Tungsten, and we will support the new rates in the country once effective.  

Project No. XIVP-2148(3) has introduced some amendments to the scope of products /supplies subject to the 5% and 9% VAT rates. 

Please refer to the link for further information.  

Lithuania has launched a tender to introduce electronic invoicing for taxpayers. This will be based on the EU e-invoicing standard (EN 16931). 

The Ministry of Lithuania is considering an implementation plan which includes a free service to supplement an API-based submission from EPRs and accounting system service of invoices considering: 

• Submission of sales invoices 
• Exchange with customers 

The launch of the e-invoicing tool has currently been scheduled for September 2023. 

We wanted to remind you that Spain’s Plastic Packaging Tax (PPT) is due to go live on 1 January 2023. 

PPT in Spain is an excise duty imposed on non-reusable plastic packaging. It is levied on the manufacturing, intra—EU acquisition and importation of such packaging.   

PPT in Spain will be charged at 0.45 Euros per kilogram.  

PPT in Spain forms part of the taxable basis- this means that PPT will also be subject to VAT.  

Suppliers are legally obliged to charge the tax, if applicable, to buyers. This means suppliers must communicate the amount of non-recycled plastic, any associated PPT and details of any exemptions, where applicable, to buyers.  

Supplies, along with associated PPT, can be included in invoices- but this information can also be provided via a certificate in place of an invoice.   

We are pleased to confirm that Tungsten has integrated the Plastic Packaging Tax as part of its service offering to our Spanish customers. Both our Web Form Suppliers and Integrated Suppliers can now successfully facilitate the inclusion of PPT in their invoices. We are communicating with our Spanish market in respect of the change.  

Please refer to Law 7/2022 for further information around PPT in Spain.

We previously communicated around Spain’s plans to utilise certified software systems to create legal invoice documentation in Spain. The certified software systems are referred to as VERI*FACTU systems.  

The Spanish government has now provided some further information in respect of these systems, which outlines: 

• General information with respect to the billing computer systems requirement 
• Web Service Description 
• High billing record design 
• Void Billing Record Layout 

Tungsten is analysing the requirements, and more broadly considering the proposed Spanish e-invoicing mandate in line with the recent VAT in the Digital Age (ViDA) proposal and how we can assist our Spanish customers with the upcoming mandate. Note that Spain has not yet received derogation from EU. 

Germany is following the lead of multiple European countries and has formally requested the European Commission for a derogation to mandate e-invoicing in the country. A country-wide e-invoicing model has been proposed by the German tax authorities but presently, very little detail is known about the proposed e-invoicing model and how this will operate. 

Recent developments regarding the VAT in the Digital Age (ViDA) proposal (please refer to Europe updates) may impact the German e-invoicing mandate. However, it is anticipated, in line with the new regulations, that Germany will adopt the EU standard on e-invoicing (EN 16931).  

Germany is a key compliant territory for Tungsten and we are closely monitoring e-invoicing developments in the country, including how the ViDA developments will influence Germany’s e-invoicing mandate.  

As 2022 draws to a close, a significant observation over the past year has been the number of countries who are imposing obligations to report income on digital platforms.  

Germany is the latest country to impose such obligations.  

The Finance Committee approved the draft law introduced by the Federal Government to implement Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation and modernising tax procedural law. 

Please refer to 20/3436 for further details. 

The Slovak government has approved the temporary reduction of VAT for specific restaurant and catering services, effective 1 January 2023 to 31 March 2023. 

The reduced rate applied will fall from 20% to 10%.  

Slovakia is a compliant territory for Tungsten Network and we currently support both rates as part of our solution.