Compliance Category: Información de la normativa

Documentation for IT billing systems

We previously communicated around Spain’s plans to utilise certified software systems to create legal invoice documentation in Spain. The certified software systems are referred to as VERI*FACTU systems.  

The Spanish government has now provided some further information in respect of these systems, which outlines: 

  • General information with respect to the billing computer systems requirement 
  • Web Service Description 
  • High billing record design 
  • Void Billing Record Layout 

Tungsten is analysing the requirements, and more broadly considering the proposed Spanish e-invoicing mandate in line with the recent VAT in the Digital Age (ViDA) proposal and how we can assist our Spanish customers with the upcoming mandate. Note that Spain has not yet received derogation from EU. 

Formal derogation request to mandate e-invoicing

Germany is following the lead of multiple European countries and has formally requested the European Commission for a derogation to mandate e-invoicing in the country. A country-wide e-invoicing model has been proposed by the German tax authorities but presently, very little detail is known about the proposed e-invoicing model and how this will operate. 

Recent developments regarding the VAT in the Digital Age (ViDA) proposal (please refer to Europe updates) may impact the German e-invoicing mandate. However, it is anticipated, in line with the new regulations, that Germany will adopt the EU standard on e-invoicing (EN 16931).  

Germany is a key compliant territory for Tungsten and we are closely monitoring e-invoicing developments in the country, including how the ViDA developments will influence Germany’s e-invoicing mandate.  

Revised timeline for e-invoicing implementation 

E-invoicing momentum has been accelerating in Slovakia, despite several postponements to the start of the proposed e-invoicing mandate. Originally, the Electronic Invoicing Information System (IS) EFA test operation was scheduled for the beginning of September this year. This date has now been postponed to December 2022.  

The revised timeline for the staged implementation of the e-invoicing process is now in line with the following:  

  • December 2022: the IS EFA test operation will begin. The pilot programme of e-invoicing should be available for all those who issue invoices to the Ministry of Finance of the Slovak Republic or to its organisation DataCentum. 
  • April 2023: the first phase of the mandatory e-invoicing system will be launched and will be available for B2G transactions. The pilot programme of e-invoicing will extend its scope and should be available for all those who invoice the other budgetary organisations of the Ministry of Finance of the Slovak Republic. This will include the Financial Administration of the Slovak Republic. 
  • January 2025: E-invoicing obligations at both B2B and B2C level are expected to commence, further to several postponements.  

The dates have not been fully finalised and are therefore potentially subject to change. Slovakia is a compliant territory for Tungsten and we are closely following e-invoicing developments in the country.  

Draft regulations regarding the KSeF e-invoicing platform (mandate) 

Tungsten has closely been following the e-invoicing mandate in Poland, as we look to support our suppliers and buyers in Poland with upcoming mandate in 2024.  

The Polish government has published draft regulations relating to the upcoming e-invoicing mandate.  

The draft regulations incorporate some significant details. Below is a high-level summary of the critical points contained within the Polish draft e-invoicing regulations: 

  • There is confirmation that the Polish e-invoicing mandate will commence on 1 January 2024. Tungsten will therefore work towards an implementation date of 1 January 2024 for the mandate and adapt our timeframes accordingly in line with any revised dates.  
  • Facturación electrónica will also be is mandatory for foreign entities with fixed establishment in Poland.  
  • Penalties for failure to comply with the e-invoicing mandate are outlined in the draft regulations.  
  • The draft regulations include a new obligation to mark invoices circulated outside the KSeF environment with a QR code. 
  • A new type of document- the ‘correcting invoice proposal’ – is expected to coincide with the start of the e-invoicing mandate and would apply when buyers request an amended invoice from a supplier. 
  • A collective identifier must be applied when at least two invoices are issued to one recipient. 
  • Certain VAT taxpayers subject to special procedures will be exempt from e-invoicing.  

The proposed changes outlined in the draft regulations are complex and Tungsten is currently analysing what this means for upcoming e-invoicing mandate and our plans to support it. Approval of the draft regulations is expected in the first quarter of 2023. We will review the finalised version once available.  

Adopting PEPPOL for mandatory e-invoicing

As stated in the 2023 Pre-Budget statement, the Malaysian Ministry of Finance confirmed to implement e-invoicing as a means of increasing tax revenues and enhancing tax administration.

Recently, the Malaysian Digital Economy Corporation (MDEC) and Malaysian Inland Revenue Board (HASiL) signed a Memorandum of Understanding (MoU) as a sign of strategic collaboration for the implementation of the National eInvoice Initiative.

The National e-Invoicing Initiative will adopt the PEPPOL framework as its e-invoicing structure. It is anticipated that a “Continuous Transaction Control (CTC)” model will also be introduced following e-invoicing adoption to enable real-time tax control. A tentative timeline has been set for Q3 2023, but this is yet to be confirmed.

 

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.

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.

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.

Update on penalties for non-transmission of retail sales documents and (B2G) e-invoicing

The new law 4972/2022 introduces some detailed tax measures regarding penalties for non-transmission of retail sales documents.

In addition, it has also introduced provided some additional provisions extending the scope of B2G e-invoicing, which means that the B2G now also apply to e-invoices issued for:

  • contracts conducted in the sectors of defense and security,
  • public contracts and contracts for projects, preparation of studies and the provision of technical and other related scientific services, supplies and general services,
  • concession contracts for projects and services, as well as rules for electronic invoices issued for each category of expenditure of the contracting authorities or contracting bodies.

Update on B2B mandatory e-invoicing

Tungsten Network previously communicated on the Crea y Crece Law which introduced mandatory B2B e-invoicing in Spain.

We can now confirm that the law has now officially published in the Boletín Oficial del Estado (the Spanish gazette).

We are still awaiting further technical details of the mandate, which are currently at draft stage.

B2G e-invoicing mandate delay

We have previously communicated on the B2G e-invoicing mandate in Slovakia, where e-invoicing has been gaining significant momentum.

Slovakia has announced a slight delay to its B2G e-invoicing mandate, which is now expected to start in April 2023 as opposed to January 2023.

ZATCA releases user manual for Fatoora portal user manual – Version 2

ZATCA has published a user manual for accessing the Fatoora Portal to onboard taxpayers’ E-invoicing Generation Solution (EGS) units. The user manual provides information on the following:  

  • Accessing Fatoora portal through the Taxpayer credentials to generate the OTP (one time password) as part of EGS onboarding process. 
  • Generation of OTP for the renewal of the existing cryptographic stamp identifier (CSID).  
  •  Viewing the list of onboarded solutions and devices along with option to revoke an existing EGS units.  
  •  E-invoicing statistics which provides a summary of the statistics in relation to the submitted documents in the past 12 months along with their respective status.  
  • API Documentation link that can be used to access the ZATCA developer portal.  

You can access the English version of the guide on the ZATCA website: https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/Fatoora%20portal%20user%20manual.pdf  

E-Invoicing threshold reduced to ₹5 from January 2023

The GST Council has mandated e-invoicing for all businesses with turnovers exceeding Rs 5 crore ($630,000) starting from 1 January 2023. This means that All GST registered businesses that meet this threshold must integrate their systems and clear their invoices with the government portal before sharing with their buyers.  

Accordingly, the Council has requested technology providers to ensure that the portal is ready by the end of December to accommodate the increased volumes of transactions.  

Tungsten has supported the e-invoicing mandate since its introduction in 2020 and is prepared to accommodate this new threshold change.       

Mandatory e-invoicing

In what has been a busy fiscal trajectory in 2022 for multiple Latin American countries, El Salvador has become the latest country to mandate e-invoicing.  

The Parliament in El Salvador, the Asamblea Legislativa, approved Decree 487/2002 (yet to be published) which effectively mandates e-invoicing in the country.   

As with other countries, the underlying motivation for mandating e-invoicing include reducing tax evasion and enhancing communication between taxpayers and the tax authorities. The Parliament also suggested that they were strongly influenced by the e-invoicing regimes of neighbouring countries, demonstrating the influential and prominent function of e-invoicing in Latin America as a whole.  

We can expect further details around El Salvador’s proposed e-invoicing model once the Decree is published in the Gazette. In the meantime, the Ministry of Finance will work on plans for the implementation of the e-invoicing mandate once the Decree has been published. 

Adaption of PEPPOL e-invoicing from October 2023 

Japan’s economic growth could be adversely affected by the paper-based back-office operations of its business operators. As a consequence of the COVID-19 outbreak, the country has become more aware of the risks of heavily relying on in-person work when offices are closed.  

Considering this situation, EIPA (Japan E-invoicing Association) was established to promote the use and popularization of digital invoices in Japan as a means of resolving it. From 1st October 2023, Japan will introduce a new Qualified Invoice System, which requires invoice issuers to register with the tax office to obtain a consumption tax ID which must appear on “Qualified invoices”.  

The “Qualified invoice” will follow the PEPPOL PINT standards. Invoices that do not comply with the requested format and do not bear the consumption tax ID number of the JCT registered supplier will not be eligible for consumption tax reclaims on purchases. 

In order to issue qualified e-invoices in Japan, vendors must register with their local tax office before 31 March 2023.   EIPA encourages businesses to start using Peppol-compliant e-invoicing software by October 2022 to ensure they are fully prepared when this deadline (October 2023) arrives.