Compliance Services
There is a global explosion of invoicing and purchase order legislation (government mandates) creating one very big challenge for business. How do you stay compliant cost effectively and avoid expensive fines for non-compliance?
The latest updates from around the world
Electricity VAT reduction
Countries across Europe continue to review their fiscal tax rates considering rising inflation, and also as economies strive to pick up pace in a post-covid era.
Finland has reduced the VAT rate on electricity from 24% to 10% until 30 April 2023.
Tungsten Network offers a compliant e-invoicing solution in Finland and our Web Form solution supports all valid VAT rates in the country.
VAT gas reduction
In view of the coming winter, combined with spiralling inflation, multiple governments across Europe are re-assessing gas and energy prices and reviewing VAT rates.
Spain has acted decisively to reduce the VAT rate, by reducing VAT on gas from 21% to 5%.
The measure is intended to last until the end of the year but may be extended.
Tungsten Network supports all valid rates for Spain as part of our Web Form solution and continues to monitor VAT rates in the country.
B2G e-invoicing with digital labelling
Fiscal policies are intrinsically linked with the advancement of social agendas and programmes. This has been seen prominently with the introduction of multiple plastic and carbon taxes, amongst others, and we expect these agendas to further expand in 2023.
Denmark is one such currently which is using its fiscal policies to showcase a distinctly more ‘green’ agenda.
The Danish Business Authority, the Erhvervsstyrelsen has published the following:
- OIOUBL version 2.1 and associated OIOUBL Schematrons 1.12
This introduces the functionality to utilise digital sustainability labels, reducing the need for paper, much like e-invoicing, which also serves to further a significant environmental agenda in the country.
Reduction in VAT for gas and electricity
Following the lead of multiple countries in Europe, Portugal has lowered VAT on gas and electricity to from 23% to 6% in the wake of inflation in the country.
We expect other European countries to follow a similar trajectory in the coming months and are closely monitoring changing tax rates both in Europe and globally.
E-CF documents update
The Dominican Republic Tax Authorities have updated several of its e-CF ( Comprobantes Fiscales electrónicos) documents.
The updated documents can be accessed below:
Reduction in VAT rate
Decree No.262/022 has re-introduced the VAT rate for certain products relating to tourism.
Residents can benefit in particular from gastronomic services, provided by bars, cafes, restaurants and hotels, with some exceptions.
Updated list for foreign providers of digital services
Tungsten Network earlier this year published some information relating to the background of the digital tax in Mexico. As a reminder, Mexico introduced some new obligations for foreign providers of digital services in June 2020 which obligated certain companies to register for VAT in Mexico.
Further to these obligations, Mexico has published a list of 159 foreign providers of digital services that are registered for tax purposes in Mexico as of 31 August 2022.
Update on mandatory B2B e-invoicing
On 15 September 2022, the Spanish Congress approved the Draft Law for creation and growth of companies (Crea y Crece Law). This law includes the obligation for Spanish taxpayers to mandatory invoice electronically for B2B transactions.
More information on the official statement is available here.
E-invoicing mandate
E-invoicing is enjoying increased momentum in South America, and Paraguay is rapidly following the lead of its neighbouring countries with developments in the e-invoicing terrain.
Companies that are on a ‘designated list’ shared by the tax authorities will be obligated to use e-invoicing by 2 January 2023.
Further company lists will form the basis for each phased period, of which there will be 10 stages, found here. The final phase is expected in October 2024.
E-invoicing in Paraguay shares key characteristics with other Latin American states, including the requirement to use an XML format, as well as the obligation for a digital signature.
Versions of the Catalogues for CFDI 3.3 and 4.0
The Mexican government (SAT) has updated its catalogues for versions 3.3 and 4.0. Taxpayers should use these new catalogues to issue their e-invoices.
The versions can be accessed via the following links:
Version 3.3:
http://omawww.sat.gob.mx/tramitesyservicios/Paginas/documentos/catCFDI_V_33_27072022.xls
Version 4.0
http://omawww.sat.gob.mx/tramitesyservicios/Paginas/documentos/catCFDI_V_4_27072022.xls
Of particular significance is the increase of information in relation to the c_NumPedimentoAduana catalogue, which should be noted by taxpayers.
German mandate
Indian mandate