November TaxTech Updates

There were many developments in the tax compliance world last month. Below you can find our news and articles published on SNI Blog in November.

Australia

Australia embraced Peppol as a cutting-edge electronic invoicing system in 2019, facilitating the seamless exchange of e-invoices and essential documents. The Australian Department of Treasury is committed to promoting Peppol-based BIS Billing 3.0 for business-to-business (B2B) transactions. The government plans to introduce legislation enabling companies to mandate their business partners, starting with major enterprises and progressively extending to all suppliers. This phased approach supports the gradual expansion of e-invoicing adoption, marking a significant step toward an efficient, paperless business environment in Australia. See the full news here.

China

The fully digitalized e-Fapiao, introduced as a new form of electronic invoice in China, eliminates the need for special tax controls. The pilot program was initiated in Shanghai, Guangdong, and Inner Mongolia in December 2021, then extended to various provinces and cities including Beijing, Hunan, Shandong, Anhui, Qinghai, Ningxia, and Guizhou in November 2023. The program offers 24-hour online services for issuing, delivering, and verifying fully digitalized e-Fapiao, with a nationwide rollout expected by 2025. This innovation enhances efficiency by simplifying processes and reducing reliance on traditional tax control tools. You can find the full news here.

Croatia

In 2019, Croatia mandated the “Servis eRa?un za dr?avu” electronic invoicing system for transactions with public entities, leveraging the Peppol network. However, the obligation doesn't extend to business-to-business (B2B) transactions, allowing business flexibility. In September 2023, the Croatian government sought an exception to the EU VAT Directive, aiming to make e-Invoicing mandatory for domestic transactions from January 1, 2026. The approval process for this exception is underway, reflecting Croatia's commitment to balancing digital transformation with the needs of businesses in the invoicing landscape. You can find the full news here.?

Estonia

In 2017, Estonia mandated e-Invoicing in B2G transactions, thereby promoting digitalization and reducing reliance on paper. The XML-based format ensures consistency and interoperability. A recent update aims to extend electronic invoicing to B2B transactions, allowing buyers to request e-Invoices. The change, aligning with the EN 16931 format, is anticipated by 2025, enhancing invoicing digitalization and expanding options for B2B transactions in Estonia. Find the full story here.

France

The Direction Générale des Finances Publiques (DGFiP) has proposed a revised timeline for the mandatory implementation of the e-Invoicing/e-Reporting system in France. Large companies are scheduled for mandatory adoption from July 1, 2025, followed by medium-sized enterprises on September 1, 2026, and all other businesses on September 1, 2027. This adjustment aims to streamline the transition to electronic invoicing and reporting while accommodating businesses of different sizes. You can find the full news here.

Germany

ZUGFeRD, a German electronic invoice format, aligns with the ViDA proposal, addressing concerns about PDF classification. Created by FeRD with ministry support, ZUGFeRD supports B2B, B2G, and B2C transactions. A recent update clarifies timelines for optional and mandatory e-Invoicing in Germany, commencing voluntarily in 2025 and becoming mandatory in 2027. Tax authorities affirm that ZUGFeRD, especially version 2.0.1, constitutes a structured e-Invoice, aligning with European standards. This approach aims to facilitate a smooth transition to e-Invoicing and compliance with evolving digital invoicing requirements. You can read the full news here.

Greece The myDATA platform, Greece's official tax portal, has mandated accounting and digital financial records for businesses since November 1, 2021. It covers various aspects, introduced gradually in 2021-2022, including general ledger, payroll, and fixed assets. Excluding cross-border transactions and B2C sales, it focuses on B2B sales and purchase invoices. The latest technical version introduces QR code integration for streamlined document summaries and additional technical detail. Apart from the myDATA regulation, The Greek Government announced that companies must issue e-Invoices for government procurement transactions as of September 2023. In anticipation of B2G e-Invoicing, obligations will be imposed in waves: from 2023 to 2025 for suppliers to all government organizations, followed by suppliers and all other government authorities. You can find the full news here.

Italy

Italy mandated e-Invoicing for B2C and B2B transactions in January 2019, pioneering the EU's first clearance model. Invoices, structured in XML as FatturaPA, must bear a certified electronic or digital signature. Taxpayers under the flat-rate tax regime were initially exempt. But from July 2022 the threshold was reduced to EUR 25,000, and by January 2024 all flat-rate scheme taxpayers will be obligated to send e-Invoices. The e-Invoicing mandate aims to combat VAT evasion and simplify fiscal and administrative processes, and enhance administrative efficiency. You can find the full news here.

Israel?

Israel's economic plan for 2023-2024 introduces an e-Invoicing program, employing the continuous transaction control (CTC) model to combat fraud. From April 2024, invoices over specified values must be transmitted in real-time to the tax authority for validation. Implementation phases, based on invoice values, have been extended from April 2024 to January 2028. An allocation number, obtained from the tax authority, is mandatory for valid invoices, facilitating input tax deduction. Transmission methods include API, web portal, and manual entry. Invoices must be archived for seven years and require a digital signature. You can find the full article here.

Kingdom of Saudi Arabia

The Zakat, Tax, and Customs Authority has initiated the "linking and integration" phase of electronic invoicing for the ninth group, encompassing businesses with VAT revenues exceeding SAR 30 million in 2021 or 2022. Eligible entities will synchronize their e-Invoicing systems with the FATOORA Platform from June 1, 2024. This phase, part of Saudi Arabia's digital transformation, requires tax invoices in XML or PDF/A-3 format. The FATOORA Platform will validate and "clear" invoices with a cryptographic stamp and QR code, fostering enhanced consumer protection and acknowledging taxpayers for their swift response in the initial phase. You can find the full news here.

Poland

Poland is set to introduce a new e-Invoice requirement in July 2024, placing additional responsibilities on taxpayers. A recent draft, following a consultation process, clarifies uncertainties regarding QR code implementation, including mechanisms for VAT_RR and correction. The requirement for QR codes on documents created outside the KSeF portal aims to enhance international usability. Additionally, the Polish government's proposed amendment to the JPK_VAT regulation, aligned with the mandatory e-Invoicing implementation from July 1, 2024, introduces key changes. Notable adjustments include reducing the VAT refund period, incorporating invoice identification numbers into KSeF, and marking invoices during KSeF failures. You can find the full news here.

Spain

The Spanish government's B2B e-Invoicing mandate, originally slated for early 2025, faces delays due to political uncertainties. The latest draft law outlines accepted formats (UN/CEFACT XML, UBL messages, EDIFACT), emphasizes electronic signature use, and mandates a unique code on invoices. Recipients must respond within four days, lest it affects their payment status. Compliance timelines vary, with larger entities given 12 months and others 24 months. The royal decree takes effect 12 months after its publication, with phased obligations over 36 and 48 months, ensuring adaptability and a gradual transition toward full compliance. SNI’s e-invoice solution is aligned with evolving requirements. You can find the full news here.

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