Compliance Updates

OVERVIEW
Navigating the minefield of invoice regulations
Every country has its own set of rules and regulations that your company must adhere to, and violating these rules, intentionally or not, can result in significant penalties.
Tungsten Network’s mastery of the international regulatory environment helps you generate legally compliant cross-border purchase order and invoice documents. Search below for the latest developments in fiscal law from around the world.

The latest updates from around the world

world China
calendar 23/02/2021

China expands its e-invoicing pilot program

In December, China’s State Taxation Administration (STA) announced further expansion of the trial programme (Pilot) to 38 regions in the country. The pilot enables specific Chinese taxpayers to issue VAT special electronic invoices on voluntary basis. The pilot project started in September 2020.

Read more

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world Poland
calendar 23/02/2021

Poland and Brexit - waiver of requirement of fiscal representative for the UK and Norway 

The Polish Ministry of Finance published draft tax legislation on 12th February, under which UK and Norwegian based companies will not be obliged to appoint fiscal representation in Poland.

This important decision is mainly due to adequate agreements for mutual assistance being in place between countries. These agreements arrange administrative cooperation and collaboration to fight against VAT fraud. The legislation comes into force retrospectively with an effective date of January 1, 2021.

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world Poland
calendar 23/02/2021

Fast progress on “structured invoices’ programme

For some time now, Poland has been stating that it would implement their continuous tax controls regulation ahead of France. They seem to be making good progress.

The Polish Government Legislation Centre has published a draft law amending the VAT Act, introducing a model of ‘structured invoices’ to the local VAT system. The draft law is available for public consultation for a very short period in February. The expectation is that the law will come into force by October 1, 2021. It should be noted that, initially, invoice issuance and reception via the national e-invoicing platform (Krajowy System e-Faktur (KSeF) or National e-Invoicing System (NeIS)), will be voluntary and businesses can continue to use current formats, including paper, PDF and other e-invoicing formats. However, the government will reward early adapted with faster VAT returns. The system is expected to become mandatory by 2023.

NOTE: The Polish KSeF system strongly resembles the Italian Sistema di Interscambio – invoice issuance and reception will take place in the platform and an archiving function is available from the system.

Note that the draft law leaves room for more detailed regulation to be added by ministerial decree.

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world Kingdom of Saudi Arabia
calendar 23/02/2021

KSA publishes its final e-invoicing regulation

As we reported before, Saudi Arabia is well on its way to mandatory electronic invoicing, only 4 years after the introduction of VAT in the Kingdom.

In autumn of 2020, KSA completed their public consultation regarding the planned e-invoicing regulation, followed by the approval of the GAZT board of directors of the final version of the regulations. This final version has been published in the official Saudi gazette on 4 December 2020 and entered into force immediately on the same day it was published. The regulations contain the framework of the e-invoicing mechanism GAZT is anticipating to apply and the expectation is that businesses in scope of the regulation will be able to comply by 4 December 2021.

While the timeline is very tight, not all details are clear, and it is expected that further details will follow prior to the effective date to help taxpayers comply with the new rules.

This is a tight timeline and businesses in the Kingdom should begin their implementations early in 2021. We see this as a unique opportunity for organisations to leverage digital technology and benefit from more streamlined tax operations.

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world Uganda
calendar 23/02/2021

Electronic Fiscal Receipting and Invoicing requirements

On 1 January 2021, the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) entered into force in Uganda. Businesses use EFRIS to their issuance of receipts and invoices for tax purposes.

As of 1 January 2021, a person who conducts business and is registered for VAT purposes is required to issue an e-invoice or receipt for any sales transaction regardless of whether the sales transaction is subject to VAT at a standard rate, zero rate or VAT exempt.

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world Slovakia
calendar 23/02/2021

Slovakia announces an e-invoicing/real-time reporting system

In a recent press release the Slovakian Tax authorities pointed at a new draft law on sending data to the Financial Administration. Please follow the link here for the full text.

The intention of the draft law is to introduce the obligation for all business entities to issue an invoice for each business transaction within a certain period of time. At the same time, invoice pre-clearance is also foreseen: the obligation to send specific invoice data to the Financial Administration before the final version of the invoice is prepared and sent to the buyer. Taxpayers can fulfil their invoice reporting obligations in various ways: using an e-invoicing service provider; directly from their accounting software/ERP using a certified communication method or using a free government portal. There will also be reporting obligations on the buyer.

Currently there is no more information or technical details available. We will continue to monitor Slovakia’s progress and report these in our upcoming e-invoicing updates.

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world Bulgaria
calendar 23/02/2021

Temporary introduction of 0% VAT rate on vaccines

From Jan 1, 2021 until Dec 31, 2022 a 0% VAT rate will be applicable on vaccines.

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world Greece
calendar 23/02/2021

Extension of reduced VAT rate 

Greece has confirmed a further extension of the reduced VAT rate of 13% for cinemas, drinks and catering services, public transport and packaged holidays until 31 October 2021.

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world Singapore
calendar 23/02/2021

GST changes in Singapore Budget 2021

The Singaporean government has decided that the planned GST increase from 7% to 9% will not take place in 2021. The Finance Minister has however emphasised base GST will need to be raised at some point between 2022 and 2025. This is mainly to support government revenue to fund rising healthcare expenditure.

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world Greece
calendar 05/01/2021

Greece MyData: delayed again

Greece’s e-Invoicing and e-Books mandate, which was supposed to have started on January 1, 2020, has been delayed again. Under pressure of the COVID 19 economic impacts and following requests from the business community, Greece’s AADE has decided to postpone the compulsory usage of the MyData e-Invoicing and e-Books platform until April 2021. Also, the platform is still undergoing development. We are currently analysing the impact of this delay as companies can still voluntarily submit transactional data to the platform.

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world Germany
calendar 05/01/2021

VAT Rates Germany: temporary VAT reductions now rolled back

As part of its economic stimulus package, Germany lowered their VAT rates in July 2020 to 16% for the base rate and 5% for the reduced rate. This tax measure ended on 31 December 2020, as planned.
From 1 January 2021 the “old” VAT rates (19% base rate and 7% reduced rate) will apply as before July 2020. What does this mean:
• Invoices for goods and services with a time of supply (tax point) after 31 December 2020 must use the original VAT rates (19% and 7%)
• Invoices for goods and services with a tax point before January 1, 2021, must still use the July 2020 rates: 16% and 5%

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world China
calendar 02/01/2021

Special VAT e-Fapiao pilot extension 

China’s e-invoicing pilot for Special VAT invoices is gaining traction quickly. The pilot was already live in 11 regions and has now been extended into another 25 regions. The project is somewhat delayed; e-invoicing is now expected to be available countrywide in the course of 2021. (The original plan was to have full country coverage by the end of 2020).

The Special VAT e-invoicing initiative aims to replace the existing Fapiao process, which is fully paper-based, and which requires taxpayers to use government pre-numbered invoices and visit local tax offices to produce such invoices.

Businesses are typically selected and certified for the pilot. Certified companies use the State “Public Service Platform of Electronic VAT Invoice” using their ‘U Key’ login terminal, which is a hardware component provided by local tax offices. On the Public Service Platform taxpayers request approval for the type and number of sales invoices they will issue in a certain period. The Public Platform is also used for the permanent storage of invoices. Invoice corrections (credit notes) can also be issued using the Service Platform (using red-lined special Fapiaos).

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world United Kingdom
calendar 23/12/2020

HMRC VAT identification validation checker

As the VIES VAT identification check will no longer be available in UK post Brexit, HMRC has launched its own VAT identification validation checker. To access the tool, please follow this link.

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world Romania
calendar 23/12/2020

Jumping on the bandwagon?

The Romanian Finance Minister has announced that the Romanian government intends to introduce an e-invoicing system. Currently, there is no more information available. We will monitor the announcements and report on further progress in the upcoming compliance updates.

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world Poland
calendar 23/12/2020

Looking at implementing e-invoicing via the National System of e-invoices (KSeF)

The Polish Ministry of Finance (‘MoF’) is looking into amending the VAT act by introducing the possibility of issuing electronic invoices next to the current paper and electronic invoices, via KSeF – the National System of e-Invoices. Next to the business benefits of e-invoicing (such as cost reductions, better transparency, and shorter payment cycles), there will be further advantages to the taxpayer such as a reduction of the deadline for VAT refunds from 60 to 45 days. The project is planned to commence in the first quarter of 2021. However, it seems that this system will be moved to mandatory usage later in 2022.

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world France
calendar 18/12/2020

Still on track for mandatory e-invoicing and VAT e-reporting

Last November 24, the French DGFiP presented its report to external stakeholders that details the road to widespread use and adoption of electronic invoicing in France and the obligation to report VAT electronically as of 2023.

At the beginning of 2021, a “Project Department” will be set up within the DGFiP. This department will lead the next steps. In collaboration with the AIFE, further consultations, organised in “Working Groups”, with stakeholders, will be happening during 2021 to further detail requirements, best practices, and support structure alignment with the needs of companies.

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world Kingdom of Saudi Arabia
calendar 18/12/2020

Mandatory electronic invoicing

As stated before in our earlier update, the Kingdom of Saudi Arabia is making fast progress with the introduction of compulsory e-invoicing. The electronic invoicing system aims to drive down shadow economy transactions and to fight commercial concealment.

The Saudi General Authority of Zakat and Tax approved the new electronic invoicing regulation on Friday 4 December 2020. The electronic billing regulation contains seven articles that regulate the mechanism for issuing and keeping electronic invoices for taxpayers. The regulation also stipulates the procedural rules and timings, as well as further provisions, procedures and persons subject to these. Mandatory issuance of electronic invoices will commence from 4 December 2021; followed by mandatory invoice reporting to the government in June 2022.

For further information, please review the English version of the e-invoicing Regulations and FAQs as recently released by GAZT.

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world Portugal
calendar 05/12/2020

Postponement of single document code ('ATCUD')

In decree 195/202, the Portuguese Government announced the requirement for businesses to include a single document code (ACTUD) on invoices and other documents relevant for taxation by January 2021. This has now been delayed until 2022.

However, Ministerial Order nº 412/2020.XXI stipulates that the Portuguese Tax Authority should strengthen support for taxpayers in meeting the obligation to include a QR Code (Quick Response Code) on invoices from 01/01/2021.

Please follow the link here for the technical specifications of the QR Code.

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world Italy
calendar 03/12/2020

Draft 2021 Budget Law drives changes to the e-invoicing mandate from 2022

The (draft) 2021 Budget Law will introduce changes to the Italian e-invoicing requirements, which will -in principle- come into effect from 2022:

  • Obligation to transmit transactions with non-residents (entities not established for VAT) to the Sistema di Interscambio (SdI). This in fact means that they cross-border reporting (Esterometro) will no longer be in use.
  • The FATTURA XML may see new fields and additional checks for supplies with declaration of intent.

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world Norway
calendar 29/10/2020

Norway: Reduced VAT rate extension

Norway has extended the 6% Reduced VAT Rate beyond October 31. A new end date has not yet been established.

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world Spain
calendar 21/10/2020

Spain - Extension emergency zero-rate

In April 20’, the Spanish Government introduced a temporary zero VAT rate for purchases and imports by public entities, hospitals and other not-for profit organisations of surgical masks and sanitary products. This was due to expire on July 31 but has been extended to 31 October 2020 working retrospectively from the date the original derogation expired.

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world Ireland
calendar 16/10/2020

Ireland: Reduction in VAT Rate for hospitality sector

Ireland will temporarily reduce the VAT rate for the hospitality sector (hotels, restaurants, bars, etc.) from 13.5% to 9%. The change is effective from November 1, 2020 until 31 December 2021.

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world Poland
calendar 07/10/2020

Poland; full steam ahead with B2B invoice clearance

The Polish Ministry of Finance plans to roll out a B2B VAT invoice clearance mandate (like the Italian SdI model) expected at the latest in 2022, with some sources citing an implementation closer to mid-2021.

Read more

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world Greece
calendar 07/10/2020

Greece delay Oct 1st invoice registration mandate

The Greek Government did an about turn on Oct 1st, the day of the mandate, to extend the voluntary period for invoice registration to January 1st 2021 citing economic impact of COVID and business readiness.

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world Hungary
calendar 07/10/2020

Hungary introduces a new file structure for online invoice data reporting

The Hungarian tax authority recently published a new file structure that will be the basis for online invoice data reporting in 2021. The new file structure is XSD version 3.0.

Read more. 

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world United States of America
calendar 07/10/2020

USA explores the possibilities for standardised e-invoicing

The American Business Payments Coalition (BPC) is leading a 3-year effort to explore the feasibility of developing and implementing a standard framework for ubiquitous B2B electronic invoicing for the US market.

Read more. 

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world United Kingdom
calendar 07/10/2020

The UK extends its reduction of the VAT rate for tourism and hospitality

The temporary VAT rate reduction to 15% VAT for the tourism and hospitality sectors will be extended up to the end of March 2021.

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world Kingdom of Saudi Arabia
calendar 22/09/2020

Kingdom of Saudi Arabia; on its way to an e-invoicing mandate

On the 17th September Saudi’s General Authority for Zakat and Taxes recently published a draft e-invoicing regulation and have sought consultation with industry experts to provide input into their proposals. Tungsten is actively engaged in the consultation process which ends on October 14th.

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world Kingdom of Saudi Arabia
calendar 20/05/2020

Kingdom of Saudi Arabia (KSA) announces a base-rate VAT increase

Kingdom of Saudi Arabia (KSA) announces a base-rate VAT increase from 5% to 15%: KSA’s Minister of Finance, Mr. Al Jadaan, announced starting from 1 July 2020 the VAT rate will increase from 5% to 15%.

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world India
calendar 17/03/2020

India delays invoice mandate

The Indian government announced its invoice registration mandate late 2019, putting forward a very challenging go-live date of 1 April 2020 – they are now reporting they will be postponing the effective date of the mandate until 1 October 2020.

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world China
calendar 09/03/2020

China moves forward with plans to improve VAT law functionality

The Chinese State Tax Administration (STA) provided a public update on multiple tax-related topics, including a development plan for electronic special VAT invoices.

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world Poland
calendar 09/03/2020

Poland marches forward with November deadline for B2G e-invoicing

Poland is taking the next step in the introduction of a national digital platform supporting its main public services with the introduction of mandatory e-invoicing for B2G transactions.

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