Compliance Category: Informations sur le mandat fiscal

Payroll CFDI 4.0 delay

Last month, Tungsten commented on the successful go-live in respect of obligations relating to the new CFDI 4.0 in Mexico. The former ‘old’ version of the CFDI, version 3.3, was no longer compliant from 1 April 2023. Tungsten can support both Web Form and Integrated Suppliers with the new CFDI 4.0 obligations.  

Despite multiple revisions to the CFDI 4.0 implementation date, Mexico, on the whole, did remain on track to deliver its changes in line with the 1 April 2023 timeline in respect of the new obligations. However, the Mexican Tax Authorities, the Servicio de Administracion Tributaria (SAT) has announced an extension for the payroll CFDI 4.0, which effectively means that impacted entities have now been afforded an extra 3 months- until 1 July 2023- to adhere to the e-invoicing obligations. As the name suggests, payroll CFDIs generally applies to entities who make salary payments.  

Tungsten does not process payroll CFDIs- and as such our go-live will remain unaffected by this change. 

Please refer to the below link for the Mexican tax authority notification in respect of the same: 

https://www.gob.mx/sat/prensa/el-sat-da-a-conocer-prorrogas-para-el-cumplimiento-de-las-obligaciones-fiscales-011-2023?idiom=es 

‘Service’ invoicing delay for select taxpayers

Small individual entrepreneurs in Brazil were obligated to use mandatory electronic billing for service invoices from 3 April 2023. This requirement has now been delayed to 1 September 2023. This was likely triggered by a lack of readiness to meet the needs of electronic e-invoicing. 

An NFS-e refers to an e-invoice for services in Brazil and provides important information in respect of the service provider, as well as the amount paid. 

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

B2G e-invoicing inception

The e-invoicing timeline in Slovakia has been subject to some revision. While the timelines for B2B e-invoicing are yet to be defined, B2G e-invoicing in Slovakia became mandatory on 1 April 2023. 

Slovakia is a compliant territory for Tungsten Network, and we will follow e-invoicing developments in relation to B2B e-invoicing.  

A public version of a bill in respect of B2B e-invoicing is not yet available, and this may require further consideration in respect of the VAT in the Digital Age (ViDA) legislation, as countries strive to ensure their proposed vision for e-invoicing and / or e/reporting is ViDA compliant.  

Timeline for B2G e-invoicing

Greece has published a timeline to implement B2G e-invoicing in the country in line with the following: 

  • As of 1 January 2024, suppliers to all central government agencies will be in scope 
  • From 1 June 2024 suppliers to all other government authorities will be scope 
  • From 1 January 2025, other government expenses must be invoiced electronically 

The official communication in respect of the same in the Government Gazette can be found here: 

https://www.sate.gr/data_source/2022%CE%A5%CE%A0%CE%9F%CE%99%CE%9A-%CE%A6%CE%95%CE%9A6232%CE%92.pdf 

You can read more about Greece on our dedicated country-specific page here. 

B2B e-invoicing -public consultation

Last month, we announced Croatia’s intention to mandate B2B e-invoicing in the country. You can read more about their initial plans here. 

Unsurprisingly, the Croatian government will be keen to collate public sentiment in respect of e-invoicing, where noise has previously not been as vociferous when compared to other neighbouring countries. To this effect, Croatia has launched a public consultation in respect of B2B e-invoicing in the country.  

Croatia is a compliant territory for Tungsten Network and we are following progress in respect of the proposed B2B mandate in the country. 

Pilot for B2B e-invoicing & B2C e-reporting starts from 3 January to 30 June 2024 

At the fnfe-mpe’s La Journéee de la Facture Électronique 2023 last week, more details have been revealed about the pilot program for the mandatory B2B e-invoicing & e-reporting system. The pilot will take place from 3 January 2024 until 30 June 2024.  

Following are the timelines for the preparation phase of the pilot program:  

  • 15 April 2023: application forms will be published on the official website (impots.gouv.fr) 
  • April-May 2023: applications for taxpayers that are interested in participating in the pilot will open 
  • June 2023: applicants are notified whether they have been selected 
  • September 2023: SME (PME) and very small businesses (TPE) will be added to the pilot  
  • Candidates for the pilot phase under PDP will be required to demonstrate their ability to obtain registration within time frame 

E-invoicing implementation in 2024

Malaysia has permitted e-invoicing since 2015 but it is not widely used. According to the 2023 Budget, the Ministry of Finance intends to adopt nationwide e-invoicing to boost revenues and reduce unreported transactions.   

The Inland Revenue Board (LHDN) recently announced plans to implement e-invoicing in phases, starting in early 2024. LHDN’s chief executive officer, Datuk Dr Mohd Nizom Sairi, stated that the e-invoicing platform will allow taxpayers to upload and store their purchase records online with LHDN. As a result, receipts no longer need to be kept on paper since they are already available electronically.  

Malaysia is one of Tungsten’s key compliant territories. We are observing e-invoicing developments in the country to see how we can best serve our Malaysian customers in the future 

Details on wave 3 taxpayers in scope of the e-invoicing mandate

ZATCA has published the criteria for taxpayers who fall in the scope of wave 3 of the e-invoicing integration phase.  

Taxpayers with total revenue (only revenue from transactions subject to VAT) exceeding 250 Million Saudi Riyals in 2021 and/or 2022 will fall within the scope of the Integration Phase from 1 October 2023.  

Taxpayers who meet the criteria are advised to integrate their e-invoicing software with the FATOORA platform before 1 October 2023. 

Detailed information on e-invoicing integration in Saudi Arabia can be found here. 

New e-invoicing draft legislation

The Polish government has published new draft regulations relating to the National e-Invoicing System, also referred to as the Krajowy System e-Faktur (KSeF). 

The draft regulations represent both a confirmation of the elements contained in the draft legislation published in December 2022, as well as some additional announcements.  

The March 2023 draft legislation confirms the following (while being cognizant that these proposals are still in draft only): 

  • Obligatory KSeF obligations will commence from 1 July 2024 
  • B2C customers are excluded from KSeF obligations  
  • The legislation cites the possibility to issue e-invoices outside KSeF in cases where the taxpayer is unable to issue them in KSeF for any reason other than system failure, with the obligation to send them to KSeF no later than the next business day 
  • Transactions exempt from VAT, simplified invoices and invoices issued through cash registers will see their e-invoicing obligations via KSeF commence from 1 January 2025 
  • The extension of the ‘validity’ of the exchange rate on invoices issued in foreign currency has been discussed – impacted invoices should be sent to KSeF no later than the day after the date of issue 
  • The elimination of correction notes and correction invoice proposals has also been proposed in the draft legislation  
  • Sanctions will take effect from 1 January 2025 
  • A requirement to retain either the KSeF number or the collective identifier on the bank transfer for payments for invoices issued in KSeF is also included 
  • Clarification of the scope of the obligation of additional marking of structured invoices in case of their use outside KSeF, the event of KSeF failure, etc has also been provided 
  • Clarification has been provided that where a foreign taxpayer has a permanent place of business in Poland, but does not participate in the supply of goods / services for which the invoice was issued – these taxpayers are not obligated to issue invoices via KSeF 
  • Clarification that KSeF will also be used to accept structured invoices during the period of KSeF failure, system unavailability or inability to issue an invoice on the part of the taxpayer, is also included within the draft legislation.  

The link to the draft legislation can be accessed here. 

We are expecting a final version of the legislation in the summer of 2023. Tungsten will analyse these once available and consider the effect these will have on our e-invoicing solution.  

 

The Basque Territory – Gipuzkoa

Politically, in many respects, the Basque Territory perceives itself as distinct from mainland Spain. This perceived division extends further in the implementation of the e-reporting and e-invoicing mandates both countries are either implementing or proposing to implement.  

The Basque Territory introduced a new mandate whereby taxpayers in the country are required to undertake real-time reporting within a framework referred to as Ticket BAI. The Basque Territory is a distinct mandate to that which we are expecting in Spain in the course of 2024.  

The Basque e-reporting mandate operates via phased implementation, commencing in 2022 with suppliers based in Alava, and attention now moves to the Gipuzkoa region in the Basque territory.  

E-reporting for the region Gizpuzkoa will become mandatory in June 2023.  

Tungsten will not be supporting the Basque mandate in Spain and consequently, will no longer be creating the legal tax artefact for suppliers based in Alava. Tungsten will create a PDF image for suppliers which can be delivered to buyers and the PDF will clearly express that it is not the legal artefact. We will implement a similar solution for suppliers based in Gizpuzkoa.  

B2G e-invoicing delay

Our recent post indicated that B2G e-invoicing was due to commence in Slovakia in April 2023. However, the implementation of B2G e-invoicing has now been delayed in Slovakia. A Decree mandating B2G e-invoicing in Slovakia is expected in 2023.  

The B2G e-invoicing delay would also suggest a further delay for mandatory B2B e-invoicing in Slovakia, potentially pushing this as far back as 2025, although no concrete timelines have been disclosed in this regard. We also expect the VAT in the Digital Age (ViDA) proposal to heavily influence Slovakia’s e-invoicing B2B model. 

Currently, the e-invoicing system can only be tested with the Ministry of Finance and the Data Centre of the Ministry of Finance. During this phase, malfunctioning elements will be identified and, once resolved, the decree will be published. We expect the B2G public sector e-invoicing implementation to be followed by B2B e-invoicing in Slovakia, and Tungsten will closely monitor e-invoicing developments in the country.  

Amendments to VAT Rulebook and electronic recording of VAT in the system of electronic invoices (SEF)

Serbia introduced some revisions to the VAT Rulebook in the Official Gazette in February 2023, which are effective from 1 March 2023.  In addition, as of 1 January 2023, all VAT debtors which are VAT payers, as well as voluntary users of the system of electronic invoices (SEF), are obliged to electronically record VAT calculations in SEF. 

The amendments to the VAT Rulebook relate to the extension of the deadline for issuance of e-invoices for so-called ‘successive supplies’ (multiple individual supplies of goods or services made to one person in one tax period). 

With specific exceptions, electronic recording of VAT calculations in SEF is performed for transactions where: 

  • The reverse charge VAT applies;  
  • when a VAT-able supply with compensation is made to a person who is a taxpayer for income from self-employment, and 
  • to a person deemed a taxpayer in terms of the Corporate Income Tax Law, as well as in case of VAT-able free of charge supplies, VAT-able expenditures (write-offs), shortages, etc. 

Response to Parliamentary question on the status of the EU Derogation request to implement mandatory e-invoicing

Last month’s post revealed some significant updates in respect of Belgium’s B2B proposed e-invoicing trajectory. The Belgian Minister of Finance has re-affirmed in response to a Parliamentary question that in accordance with the government agreement, he intends to mandate e-invoicing for most taxpayers.  

This inevitably requires an application for derogation from Articles 218 and 232 of the EU VAT Directive, which has been discussed between the Cabinet of the Ministry of Finance and the European Commission.  

The measures regarding both e-invoicing and e-reporting are in line with the proposal from the European Commission and are hoped to further reduce the VAT gap in the country. 

Discussion paper for B2B e-invoicing

The Bundesministerium der Finanzen announced that they will shortly publish draft details of the proposed domestic B2B e-invoicing solution that will take effect between German businesses.  We are expecting this during April 2023. By means of some background, Germany requested a derogation to mandate e-invoicing in November 2022– just a month before the European Commission published its much-anticipated VAT in the Digital Age (ViDA) proposal.  

The discussion paper is, in all likelihood, triggered by the proposal. However, the roots of this may extend back yet further- the new coalition government in Germany had also considered the reduction of the VAT gap via digitisation of its fiscal procedures as far back as 2021.  

Finer details around the e-invoicing solution are yet to be revealed, but it does appear in all respects that it will be incumbent on the German tax authorities to produce a model that is ViDA compliant.  

Germany is a critical market for Tungsten and we are looking forward to probing Germany’s proposed e-invoicing solution once unveiled.  

Croatia- B2B e-invoicing

Building on the introduction of project ‘Fiscalisation 2.0’ last month, Croatia’s e-invoicing drive has just been sparked to life as the government announces plans for a nationwide B2B e-invoicing mandate. By means of some background, Croatia introduced B2G e-invoicing obligations in 2019.  

The timing of the announcement is not coincidental. The VAT in the Digital Age (ViDA) proposal looks likely to have triggered countries to review their own e-invoicing practices as reporting obligations loom in January 2028, according to the current proposal. 

Specific details of Croatia’s proposed e-invoicing are yet to be announced, but in all likelihood, this will be modelled largely on the Croatian government’s e-invoicing national platform, the e-Racun.  

The mandate is expected to take effect from 1st January 2025, according to current timeframes. Currently, it appears that Croatia’s Ministry of Finance will include full transactional-level live submission of e-invoices, although specific details in respect of the e-invoicing solution have not yet been confirmed. 

Tungsten is also probing mandates in France, Poland, Belgium and Spain, amongst others EU countries, which are expected to commence prior to January 2025. Croatia is, however, a compliant market for Tungsten and we are closely observing developments in respect of the Croatian mandate with a view as to how we can serve our Croatian market. Mindful of the ViDA backdrop, we expect Croatia’s e-invoicing model to be ViDA compliant and will keep you informed of the same.