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?

Invoice regulation change is frequent and overwhelming for many businesses
The latest mandate news and updates can be found lower down this page. Bookmark this page to stay right up to date. Our mandate solutions enable businesses to cost effectively comply and stay compliant throughout the lifecycle of a mandate. Read about our e-invoicing mandate solution in more detail as well as our country specific solutions.

The latest updates from around the world

Dominican Republic

Progress on e-invoicing mandate

We have previously commented on the progress of e-invoicing in the Dominican Republic. The government has now issued fresh draft e-invoicing regulations.

To become effective, the Draft law will need to enacted by the President of the Republic.

We will keep you informed of developments in the Dominican Republic e-invoicing landscape.

Update on e-invoicing system for service invoices (NFS-e)

The implementation of the NFS-e endeavours to accomplish a dual purpose: to facilitate the tax process for taxpayers but also to be a database (ADN – National Data Environment) to be used by the tax authorities in the event of inspections.

The national standard system for the NFS-e (Service e-Invoice) in Brazil is currently at testing stage, with only seven cities selected to start the pilot project. The municipalities can adhere to the use of the NFS-e system – both those that already have an electronic system and those that do not. Municipalities are therefore not required to use the system, however, the municipalities that do not will also not have access to the national database.

As of January 2023, individual microentrepreneurs (known as MEI in Brazil) will be required to issue their service invoices from the NFS-e system.

Argentina

Meat e-transport document

Argentina has imposed the obligation for taxpayers to assign the number of the electronic document required for the transport of meats (Remito Electronico Carnico- REC) in the sales invoice.

Further to Resolution 5259/2022, this number must now also be included in the sales invoice.

Dominican Republic

VAT on foreign digital service providers

The Dominican Republic has proposed an 18% tax for foreign digital service providers, following a consultation in August. This follows an increasingly prevalent global trend, where an increasing number of countries are proposing or implementing a tax on foreign digital service providers.

The Bill will now pass to the Chamber of Representatives for consideration

El Salvador

Revision of tax code

E-invoicing is gaining increasing momentum in South America as it accelerates across the continent.

El Salvador has also been influenced by the e-invoicing presence in neighbouring countries, with the tax code in El Salvador now revised to include provisions relating to the issuance and use of electronic tax documents.

Further concrete details are expected from the government in this regard, include a timeline for phased implementation amongst other details.

Tungsten keenly follows updates relating to e-invoicing in South America and will keep you updated with the latest e-invoicing developments in the country.

Deadline to use CFDI 4.0 extended for taxpayers obliged to issue Payroll CFDIs until March 31, 2023

An update on the preliminary draft of the Ninth resolution of modifications to the Miscellaneous Tax Resolution (“RMF”) for 2022 has been published on the website of the Tax Administration Service in Mexico (also known as the SAT).

This update indicates via its Fifth Transitory article that taxpayers obliged to issue Payroll CFDIs can choose to continue issuing them in version 3.3 with payroll supplement version 1.2 until 31 March 2022.

The CFDI 4.0, and associated documents including the payment receipt, are still scheduled to be mandatory from 1st January 2023.

Taxpayers required to issue CFDI Payroll will have an additional period to complete their work to collect the tax data of workers (RFC, Name and Postal Code) required for the issuance of CFDI 4.0, as well as well as to verify that these are aligned with the information registered in the SAT databases. The requirement to validate this information against the SAT database was introduced by the SAT earlier this year.

Guatemala

Requirement for small taxpayers to issue e-invoices by 31 March 2021

We have previously communicated on the e-invoicing mandate in Guatemala, introduced on 1st July 2022. Guatemalan Tax Administration (Superintendencia de Administración Tributaria, SAT) have now decreed that small taxpayers should also adhere to the e-invoicing regime (Régimen de Factura Electrónica, FEL) by 31 March 2023.

The Resolution No. SAT-DSI-1350-2022 will come into effect 3 months after the publishment in Official Gazette No. 85, which was on 17 October 2022.

European Union

OECD – tax administration 3.0 and electronic invoicing

The Organisation for Economic Co-operation and Development (OECD) has published its initial findings report “Tax Administration 3.0 and Electronic invoicing”.

The overall aim of the report was to examine the growing use of Value Added Tax (VAT)-related continuous transaction reporting systems relying on electronic invoices produced by business, and to analyse how these could be aligned with the concepts outlined in the OECD’s Tax Administration 3.0: The Digital Transformation of Tax Administration.

The report concludes that global standardisation interoperability is not a realistic aim in the short-term, due to individual Member States pursuing various avenues based on specific domestic considerations. There are also a multitude of growing standards available, leading to further disparity. The current fragmentation of certain e-invoicing systems was also placed under the spotlight, with the implementation costs of these systems also exposed.

The report also includes a set of considerations that tax administrations may want to consider when exploring the possible introduction of electronic invoicing.

The full report can be accessed via the link below:

https://read.oecd-ilibrary.org/taxation/tax-administration-3-0-and-electronic-invoicing_2ffc88ed-en#page1

Portugal

VAT exemption codes updated

Decree-Law no. 198/2012 in Portugal confirms the obligation to communicate details in respect of invoicing documents.

Within this, the Portuguese Tax Authorities (PTA) have updated the list of VAT exemption codes.

To accommodate this change, developers and users of invoicing programs must ensure their systems are updated, in line with the codes on page 51 of the MANUAL DE INTEGRAÇÃO DE SOFTWARE – Comunicação dos elementos dos documentos de faturação à AT, por webservice” on the PTA website.

The link can be accessed below:

https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Faturacao/Fatcorews/Documents/Comunicacao_dos_elementos_dos_documentos_de_faturacao.pdf



Country specific mandates