Compliance Category: Actualizaciones de los países

Extension of the penalty relief initiative for 6 months

ZATCA has extended the “Cancellation of Fines and Exemption of Penalties Initiative” for an additional six months beginning on December 1, 2022 and ending on May 31, 2023.

ZATCA has also clarified that the fines covered by the exemption decision, include fines for late registration in all tax systems, late payment, late filing of returns fines in all tax systems, fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.  Note this is a general amnesty and should not be interpreted as a delay in having to comply with the requirements of the Integration Phase of the e-invoicing mandate.

A simplified guideline (Arabic) published on ZATCA’s website provides more information about the initiative (including examples of violations and the conditions for benefitting from the exemption from fines).

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.

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

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

Digital Reporting Requirements

Digital Reporting requirements (DRR) encompass measures such as mandatory e-invoicing and e-invoicing obligations. EU Member States often instigate these measures to generate tax revenue.

Notably, however, the EU has not implemented a specific EU-wide agenda relation to DRRs, leading to individual countries to actively pursue their own fiscal agendas in relation to DRRs. From a broader perspective, this means there is greater uncertainty in the e-invoicing landscape around a uniform, universal standard.

To address these challenges, with a means to increase the effectiveness of the measures takes by Member States, the European Commission will publish its proposal on the future of DRRs on 16 November 2022 as part of its wider VAT in the Digital Age Initiative.

Update to KSeF Taxpayer Applications

On 20 October 2022, the Polish government released a test version of the KSeF Taxpayer Application. This test version incorporates elements of the feedback received during the testing period.

The Application includes several functionalities, including:

  • Issuing and receiving invoices from KSeF
  • Viewing invoices

It is hoped that the updates incorporated to the Taxpayer Application will lead to a more efficient and less cumbersome process for taxpayers.

 

 

 

 

Draft rules for digital platforms

HM Revenue & Customs in the United Kingdom has published some draft rules relating to reporting rules for digital platforms.

These rules impose the following obligations on digital platforms:

  • To collect information relating to income of sellers using their platforms to:
    • Rent out property
    • Provide personal services
    • Sell goods
    • Rent out transport

The final regulations are expected to come into effect on 1st January 2024.

Cessation of SI-UBL 1.2 standard

The Dutch government has stated that from 1st January 2023, it will no longer support SI-UBL 1.2.

SI-UBL 1.2 was announced as an optional format on 1st July 2022.

From 1st January 2023, entities sending documents to the Dutch central government can use the following standards:

  • NL-CIUS
  • PEPPOL BIS.

The identifier OIN:0190 must be used when transitioning to these new standards.

New VAT measures in budget

The Irish budget was published on 27 September 2022 and has incorporated a range of VAT-related initiatives. These include:

  • Zero-rating of VAT on paper and digital newspapers and periodicals
  • Extension of 9% VAT rate on gas and electricity to 28 February 2023 (this was initially due to expire on 31 October 2022)
  • Zero-rating for range of medical supplies.

These measures will take effect from 1st January 2023.

Compilation Guide update

The Italian tax authorities previously released a new version, 1.7.1, of the Compilation Guide for electronic invoicing and the Esterometro, which updated Annex A of the technical documentation for B2B e-invoicing. This outlined further detail around document types TD17, TD18 and TD19 in Italy.   

The Italian authorities have now released version 1.8 of the Compilation Guide regarding the Electronic Invoice and Esterometro. This includes the following changes: 

  • Further information relating to a new document type, TD28 
  • Further clarity around the usage of an existing document type, TD19. 

Tungsten Network has successfully enabled the new document type TD28. 

These changes have taken effect from 1 October 2022. 

The new documentation can be found via the following link:  

https://www.agenziaentrate.gov.it/portale/documents/20143/451259/Guida_compilazione-FE-Esterometro-V1.8.pdf/c0aca469-4c4a-9b8d-048c-398412435c26 

Upcoming changes to GST invoicing in New Zealand 

The Inland Revenue of New Zealand is introducing a set of new rules around tax invoices, with effect from 1 April 2023. Here is a summary of the key points:  

  • New terminology:   

Note that:  businesses will not be required to change the wording on their tax invoices to reflect the new terms.   

  • Date for providing taxable supply information to the buyer  

Sellers must provide their buyers with the taxable supply information within 28 days (or by an alternative date agreed by both parties) of a request for supplies over NZ$200.  

In the case of supplies under NZ$200, sellers must keep a record of the supply, but are not required to provide taxable supply information.   

  • Physical record keeping is no longer required   

There will be no need to maintain a single physical document containing supply information, such as a tax invoice, credit note, or debit note. All the information you need to support your GST returns may be contained in your transaction records, accounting systems, and contract documents.  

  • Providing Supply correct information   

In the case of an incorrect amount of GST being included in the taxable supply information (currently called tax invoice), or when the seller has included an incorrect GST amount in their GST return, supply correction information (currently called credit notes or debit notes) must be provided.  

Also, the Inland Revenues encourages business to adopt PEPPOL e-invoicing and has published a list of registered software providers at eInvoicing Ready product register | ATO Software Developers  

 

ZATCA proposed amendment on Article 33 of the VAT law

Zakat, Tax and Customs Authority (ZATCA) released draft legislation proposing an addition to Article 33 of the VAT regulations, which includes a zero VAT rate for “exporting” services.  

The following amendment has been proposed by ZATCA to Article 33 of the VAT Implementing Regulations:   

“3- Notwithstanding the second paragraph of this article, the supply of services to a non-resident customer in any of the member states is subject to the zero rate in cases where the supply facilitates the supply of taxable services by that non-resident customer to a person in the Kingdom.”  

Stakeholders and taxpayers were encouraged to share feedback on this proposal no later than 11 November 2022.