March TaxTech Updates
In the past month, there have been significant developments in the realm of tax compliance. Below, you will find a compilation of articles and news featured on the SNI Blog throughout March.?
Postponement in Deployment of e-Invoicing and Compliance Date for Tax Payers in France
The Finance Law for 2024 and a subsequent decree have introduced significant changes to tax regulations in France, particularly focusing on electronic invoicing and e-reporting. The deployment of electronic invoicing will occur in phases, starting from September 1, 2026, for large and mid-sized companies, and from September 1, 2027, for small and medium-sized companies and microenterprises. The amendments aim to address concerns raised in a press release from July 28, 2023, by establishing clear timetables for these measures. Additionally, the amendments correct an oversight in the 2023 finance law by introducing an obligation to establish a reliable audit trail. These changes acknowledge varying readiness levels among businesses and provide extended timelines for preparation. The ultimate goal is to facilitate a successful transition to electronic invoicing and e-reporting, enhancing competitiveness and efforts against VAT fraud. The decree issued on March 25, 2024, further streamlines the transition process and clarifies registration procedures for dematerialization platform (pdp) operators, ensuring compliance with tax regulations. You can find the full news here.
Malaysian PINT BIS Billing Process Specifications
The Malaysian Government has released the PINT BIS Malaysia Billing process 1.0, based on the Peppol International Model for Billing. It outlines the implementation of billing specifications tailored for Malaysia, incorporating localizations to comply with business and tax requirements, such as Sales and Service Tax (SST). The document utilizes the OASIS UBL 2.1 XML format and aims to facilitate efficient electronic collaboration in the billing process. It covers invoice issuance, reception, accounting, verification, auditing, tax reporting, and payment processes. Exclusions include support for inventory management, delivery, customs clearance, marketing, and reporting. Specifics on credit notes, negative invoices, preceding invoice references, attachments, and allowances/charges are detailed. Additionally, specifications for taxpayer requirements, including identifier formats, tax details, coding, and currency usage, are highlighted to align with Malaysian law. You can find the full news here.
Bulgarian SAF-T Implementation Timeline and Regulations?
The National Revenue Agency (NAA) is initiating a project to implement the SAF-T (Standard Audit File-Tax, v.2.0) standard developed by the OECD for large and medium-sized taxpayers in Bulgaria. This standardized reporting aims to improve risk management, reduce administrative burdens for businesses and the government, and enhance voluntary taxpayer compliance nationally and within the European Union. SAF-T facilitates the retrieval of predefined accounting records in an accessible format, easing the exchange of electronic records between taxpayers and tax auditors. The NAA plans to gather international best practices, analyze the environment, and devise a strategy and roadmap for SAF-T implementation over a 24-month period. This initiative is expected to enhance communication between the revenue agency and taxpayers, improve administrative capacity, and ultimately increase tax administration efficiency while fostering trust and encouraging compliance. The European Commission is exploring the adoption of a standardized system for VAT reporting in Bulgaria, leveraging successful SAF-T implementations in other EU countries to streamline tax audits and address challenges in cross-border trade. You can find the full news here.
Paraguay’s e-Implementation Postponement
The Sistema Integrado de Facturación Electrónica Nacional (SIFEN) in Paraguay is a new tax system facilitating the issuance, reception, validation, and storage of Digital Tax Documents (DTEs) via the e-Kuatia platform. Implementation of electronic invoicing has been phased, with a postponed deadline for newly registered taxpayers until January 1, 2025. DTEs support various financial transactions and must meet specific requirements to be issued. Two solutions, "E-kuatia" and "E-kuatia Pro," are available for electronic invoice issuance. SIFEN validates and authorizes DTEs, ensuring legal validity. Recipients receive DTEs electronically or a graphic representation called KuDE if non-electronic, which must be stored for six months. You can find the full news here.
Romanian e-Factura System and Grace Period Extension
In 2020, Romania introduced the e-Invoice system under the Ministry of Finance (MoF) and the National Financial Administration Agency, outlined by Emergency Ordinance No. 130. Starting January 1, 2024, e-Invoicing became mandatory for all Romanian entities in domestic B2B transactions. A grace period initially until March 31 was extended to May 31, 2024, allowing companies to align their systems without penalties. Following this, fines ranging from RON 1,000 to RON 10,000 based on company size will apply for non-compliance, as per the RO e-Invoice guidelines. Additionally, a system for marking tobacco products to reduce illegal trade and protect public health is being implemented. You can find the full news here.?