Compliance Category: Informations sur le mandat fiscal

E-invoicing system upgrade

Our recent post commented on the progress of e-invoicing in Serbia, where the publication of a draft law in the country imposed further e-invoicing obligations in the country. E-invoicing systems frequently undergo modifications for multiple reasons- to enhance the customer user journey, or for increased automation amongst others – and the Serbian e-invoicing system is no exception, now accommodating an upgrade to a newer version. The newer version has considered previous technical errors, which have been remedied with the new version. Select changes to VAT recording have also been corrected.   

Information relating to the upgrades can be accessed via the following link:   https://www.efaktura.gov.rs/extfile/sr/1775/SEF%20detalji%20ispravke%203.2.3%20verzija%20od%2024032023.pdf  

More generally, you can refer to further information on e-invoicing in Serbia on our country-specific page here.  

New draft version of XML schema FA(2)

The Polish schema has been subject to much scrutiny when the Polish e-invoicing mandate was announced. Given that it is based predominantly on the SAFT-reporting file in Poland, it contains many more fields than would typically be expected to be seen in an invoice, including numerous fields which unrelated to VAT, such as excise and customs information. Given this background, and as is typical practice for countries undergoing e-invoicing implementation, it is not surprising that the Polish schema would undergo some revisions.    

 On 23 May 2023, a new draft version of XML schema for the Polish e-invoice (FA2) was published on the webpage of the Ministry of Finance. The publication of the new schema will allow IT systems to adapt to the new changes in line with the new obligations. The final version of XML schema is set to be published in June 2023 and become binding for the issued and received e-invoices from 1 September 2023. This therefore includes the voluntary period of KSeF, which is expected to last until 1 July 2024.   

 The implementation curvature for FA(2) is expected to be in line with the following:   

  • 23 May 2023: the release of the new draft version of FA(2) logical structure   
  • June 2023: the new logical structure is expected to be officially published on ePUAP website  
  • July 2023: the test environment adapted to the new logical structure is expected to be rolled out, along with the relevant documentation  
  • 1 September 2023: the production environment supporting the new version of the FA(2) logical structure is expected to be released.  

 Therefore, from 1 September 2023, a new version of the FA(2) logical structure will be binding for the purposes of issuing e-invoices via KSeF and will effectively replace the FA(1) logical structure.  

Changes in the draft of FA(2) compared to the FA(2) submitted for consultation in December 2022 along with the technical documentation have been published on the Ministry of Finance website, but yet are available in Polish only.   

Kofax has defined the differences between the old and the new schema and is currently analysing these with a view as to what effect this will have on our e-invoicing implementation.   

Mandatory KSeF draft law submission to Sejm

In Poland, the legislative process to accommodate the mandate is accelerating. On 9 May 2023, the Council of Ministers adopted a further draft amendment to the VAT Act. This draft was submitted to the Sejm on 17 May 2023 and published on the website.  

The new version includes some changes to the previous draft released in mid-March. These can be summarised as follows:  

  • Technical correction of invoices- the new version provides a non-legislative solution for correcting invoice technical errors in the event of KSeF breakdown  
  • The QR codes, which are used to mark invoices outside KSeF, now serve a dual function. QR codes are used to enable verification of the data on the invoice but also now have an additional function: to access the invoice in the National e-Invoice System.   
  • A separate subchapter in the VAT Act concerning the marking with the KSeF ID or collective ID of payment for an invoice made between active VAT taxpayers, providing for, among others, setting the status of the invoice recipient on the White List.  

 We are still awaiting further clarity on the obligations relating to QR codes in Poland. Once the Polish Ministry of Finance has published further details in respect of this, we will assess how we can accommodate this as part of our e-invoicing solution.   

The Act is in draft form only and further modifications may be enacted. Further consideration of the bill will be undertaken at the end of May.  

Draft legislation National e-invoice System adoption

As the inception date for the Polish e-invoicing mandate (1 July 2024) edges closer, the government is accelerating its legislative framework to accommodate the mandate.   

The government has now adopted the draft legislation to introduce a uniform e-invoicing standard in the country, which strives for increased automation, lower costs and enhanced processing.   

 The Polish Ministry of Finance publication provides further information of the same via the link below:  

https://www.gov.pl/web/finanse/rzad-przyjal-projekt-krajowego-systemu-e-faktur-ksef  

 Poland is a compliant territory for Kofax and our compliance and research and development teams are currently working to facilitate the mandate. You can read more about Poland on our dedicated country-specific page located here.   

E-Invoicing threshold reduced to ₹5 from August 1st  2023

The GST Council has recently issued a notification that mandates e-invoicing for all businesses with turnovers exceeding Rs 5 crore ($608,302) from 1 August 2023. As a result, GST-registered companies that reach this threshold must integrate their systems and clear invoices via the government portal before sharing them with their customers.

Tungsten has supported the e-invoicing mandate since its introduction in 2020 and is prepared to accommodate this new threshold change.

ZATCA determines criteria for wave 4 participants in the Integration Phase

ZATCA has selected the participants for wave 4 regarding the e-invoicing integration phase. The fourth wave to implement the integration phase of e-invoicing will apply to all taxpayers whose VAT revenues exceed 150 Million (~39M USD) Saudi Riyals during 2021 or 2022.

From 1 November 2023, taxpayers who meet the criteria should integrate their e-invoicing systems with the ZATCA FATOORA portal.

Updated e-invoicing obligations

We predicted in our last post that Columbia’s new government would initiate a number of fiscal-related reforms in the country. It is now evident that the new government is acting decisively in respect of e-invoicing practices in the country.

In March 2023, the government issued Decree 442, which introduced some changes to the country’s e-invoicing regulations.

These updates can be summarised below:

  • A requirement that e-commerce platforms provide services allowing users to issue and deliver e-invoices
  • Extending the scope of the e-invoicing system to include all electronic tax-related documents
  • The introduction of a new definition of electronic equivalent document
  • Specific modifications to the electronic supporting document with respect to transactions with taxpayers not required to issue invoices

You can read more about e-invoicing in Columbia on our country-specific page here.

NF3-e implementation postponed for the State of Espírito Santo

The mandatory implementation of the NF3-e has been postponed to 1 June 2023 for the state of Espírito Santo. The NF3-e refers to a specific type of invoice in Brazil- the Electric Energy Electronic invoice. The postponement has been captured in the Ajuste Sinief 2/2023.

The updated timeline in respect of the NF3-e implementation looks set for the following trajectory:

  • 1 June 2022: Mato Grosso
  • 1 October 2022: Alagoas, Amapá, Amazonas, Bahia, Maranhão, Mato Grosso do Sul, Pará, Paraíba, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rondônia and Sergipe
  • 1 December 2022: Acre
  • 1 February 2023: Roraima
  • 1 April 2023: Tocantins
  • 1 June 2023: Espírito Santo, Santa Catarina, São Paulo and Minas Gerais

You can read more about e-invoicing in Brazil on our country-specific page here.

B2B e-invoicing discussion paper

The e-invoicing trajectory in Germany is gaining pace, in line with its neighbouring European counterparts on the continent. Last month, we commented on Germany’s intention to produce a discussion paper which would incorporate further details in respect of the proposed B2B e-invoicing mandate in the country. The process of producing the discussion paper has now concluded and, while the discussion paper is not yet publicly available, we do now have some indications regarding its content.  

The first striking element within the paper is the proposed timeline of Germany’s e-invoicing mandate- which is touted for 1 January 2025- a year sooner than expected, indicating Germany’s intention to expedite e-invoicing in the country. Other elements are perhaps less surprising- especially those which align Germany’s proposed e-invoicing model with the VAT in the Digital Age (ViDA) proposal.  

Exact details around the e-invoicing model are as of yet unknown, but it does appear that service providers can act on behalf of buyers and suppliers, with invoices processed via a central government platform. The model also confirms to ViDA standards, by undertaking plausibility and syntax checks on the invoice data, rather than ‘conventional’ clearance, which does not appear to contravene the spirit of the proposal.  

Moreover, in line with the ViDA proposal, the structured format is expected to align with the European common standard- the EN16931. Presently, the German solution does not comment explicitly on e-reporting- and so for now we do not expect this to be implemented in tandem with the e-invoicing component of the solution.  

 By means of a reminder, the German government requested a derogation to mandate e-invoicing in the country in November 2022- one month before the European Commission published the ViDA proposal. It is important to note that derogation has not been granted to mandate e-invoicing in the country. However, the proposed e-invoicing model- which for all intents and purposes seems to have been dictated largely by the ViDA framework- seems to suggest that at least on a surface level, little resistance would be provided to this effect.

As the e-invoicing model is envisaged before all the ViDA obligations come into effect (I.e. 1 January 2028), it looks likely that Germany will continue to strive for the derogation. Given that the derogation process is projected to become redundant from 1 January 2024, the European Commission’s response to Germany’s derogation request will be an intriguing one. 

Germany has already commenced the process of public consultation with business stakeholders, specifically, select larger German enterprises requesting detailed information around the e-invoicing process, no doubt to sharpen and refine its current plans for e-invoicing implementation.  

 Germany is a critical market for Tungsten Network. We are closely monitoring further details the German government confirms in respect of the proposed B2B e-invoicing mandate with a view as to how we can best serve our German market.  

 

 

Proposed amendments to the e-invoicing rules

The Saudi Zakat, Tax and Customs Authority (‘ZATCA’) is proposing changes to the controls, requirements, technical specifications, and procedural rules of the E-invoicing regulation.  

Advance payments (‘prepayments’) and charges on invoices/notes have been suggested as new functionalities. Additionally, certain updates have been proposed concerning business rules and changes to obligations. The proposals were subject to a brief consultation period, which has now ended.   

For more information related to the proposal, you can visit this link.  

 

New time limit to report e-invoices to the IRP

The Indian government requires mandatory e-invoicing for taxpayers with an annual aggregate turnover (AATO) above Rs 10 crore for both B2B and B2G invoices. Currently, there is no restriction on when e-invoices should be reported to the IRP. E-invoices are typically generated in real-time by large enterprises in India, while smaller businesses may consolidate and generate e-invoices in bulk at a later time. 

GSTN’s latest advisory suggests that this may change. According to the advisory, taxpayers with an annual aggregate turnover above Rs. 100 crores will need to report the e-invoice within seven days of issuance. This restriction will only apply to invoices, and there will be no time restriction on reporting debit/credit notes. It is proposed to implement the new seven-day limit on 1 May 2023 

Launch of the pilot phase and a call for applications

The French tax authorities have announced an experimental phase – the pilot phase – from January 3 to 30 June 2024 in anticipation of the mandatory e-invoicing and e-reporting obligation in France (July 2024). 

To participate in the pilot and respond to the call for applications, taxpayers can register on the following website: https://www.impots.gouv.fr/je-participe-la-phase-pilote. Participants must submit their application files by June 26, 2023.  

The official press release provides more details about the application: https://presse.economie.gouv.fr/19042023-cp-facturation-electronique-lancement-dun-pilote-et-dun-appel-a-candidatures/ 

Update on Malaysian e-invoicing mandate

In a recent workshop session, Lembaga Hasil Dalam Negeri Malaysia (LHDNM) confirmed the previously mentioned deadlines for mandating e-invoicing for all businesses between 2024 and 2027. Here is a summary of the confirmed timelines: 

  • During 2023, the infrastructure will be prepared, and a pilot project will be launched with selected companies. Companies not selected for the pilot project may voluntarily participate.  
  • January 2024 – voluntary e-invoicing implementation 
  • From June 2024: Mandatory implementation for businesses with annual sales exceeding RM100 million. 
  • From January 2025: Mandatory implementation for businesses with annual sales exceeding RM50 million.  
  • From January 2026: Mandatory implementation for businesses with annual sales exceeding RM25 million. 
  • From January 2027: Mandatory implementation for all businesses. 

In accordance with the latest information, the model to be implemented would be Continuous Transaction Controls (CTC) where invoices should be cleared with the tax authority. Businesses will submit their e-invoices to LHDNM for verification via API. After the invoice is approved, the LHDNM will generate a Certification Serial Number and send an email to the issuer and recipient. 

E-invoicing delay for final wave of taxpayers

Our recent posts have commented on the trajectory of e-invoicing in Bolivia, which has elected to use phased implementation for the expansion of e-invoicing across the country. 

The e-invoicing implementation in the country is now entering its final stage. The fourth, and final wave of taxpayers in Bolivia, was due to be tasked with e-invoicing obligations from 1 April 2023. This has now been delayed to 1 June 2023. 

Bolivia implemented mandatory e-invoicing via the Sistema de Facturacion Electronica (SFE) in December 2021. Despite delays in the application of e-invoicing due to the pandemic, the final wave of taxpayers joining the e-invoicing obligations should conclude the process of e-invoicing in the country.