Servicios de cumplimiento

Qatar and all other GCC member states signed the Gulf Cooperation Council VAT Framework Agreement in November 2016. It calls for all Gulf states to introduce VAT and to establish national VAT laws in accordance with it.   

Qatar has previously planned to introduce the VAT regime in 2022, however this was pushed back due to inflation and financial complications caused by Covid-19. As the world recovers from Pandemic, Qatar is considering plans to implement a 5% VAT regime in the course 2023.  

There has been an increasing movement towards fully digitalized e-fapiao since China took off the zero-COVID policy. The State Tax Admin has announced that starting from 28 Jan, selected taxpayers from Shanxi, Qingdao, Dalian, Chongqing and Tianjin will be required to issue fully digitized e-fapiao using the unified e-invoicing platform built by the STA.   

 Here is an updated overview of how the Fully Digitized E-fapiao operates to date:     

Who can issue fully digitized e-fapiao: Selected taxpayers in Guangdong (exc Shenzhen), Shanghai, Sichuan, Xiamen, Inner Mongolia, Shanxi, Qingdao, Dalian, Chongqing and Tianjin. Pilot taxpayers in these regions should issue fully digitized e-fapiao via the government portal, which provides taxpayers with access to 24-hour online services to issue, deliver, and verify their fully digitalized e-fapiao free of charge.  

Who can receive fully digitized e-invoice: all taxpayers in China can accept the fully digitized e-fapiao issued from pilot taxpayers.  

The Singapore government is making plans to mandate the use of e-invoicing for B2G transactions, according to the speech given on 24th Feb 2023, by Minister of State for Finance and Transport – Hong Tat Chee.   

InvoiceNow is a nationwide E-invoicing method that enables the direct delivery of invoices in a structured digital format on the Peppol network, which will also be the default e-invoice submission channel for all government vendors within the next few years.   

Tungsten provides Peppol invoice services across many of our compliant markets and will follow closely the updates on the Singapore B2G e-invoicing mandate.  

A new version 2.2 of the Guidelines for mandatory electronic invoicing and reporting has been published by the French authorities. 

The updated version 2.2 includes changes: 

• Addition of 2 compulsory mentions (single taxable persons) 

• Detailed review of the factoring management case 
• Corrections / clarifications in the management cases 
• Some new business cases (transparent intermediary and Author’s notes) 
• Clarifications on the management of corrective / rectifying e-reporting flows  
• Clarifications/further details on the use of APIs  

• Update of some annexes and in particular the description of the Extensions and their UBL and UN/CEFACT CII mapping (thus also Factur-x).  

The updated version 2.2 is available for download here.  

Malaysia historically adopted the Goods and Services Tax system, which was then replaced by the Sales and Service Tax in 2018. Government ministers and private industries are discussing re-introducing the Goods and Services Tax system, arguing that it is the most effective way to replenish the economy. Ismail Sabri Yaakob, the former prime minister, also backed this proposal. 

However, the table has turned, since the new PM Anwar Ibrahim took office in November 2022. According to PM Anwar, GST will not be reintroduced, instead, the government will be looking to reduce subsidies for the wealthy as a measure to increase the country’s revenue. 

Our previous blog has talked about the upcoming consumption tax reform in Japan, where businesses are required to provide a “qualified invoice” to claim input tax credits. The “Qualified Invoice system” will follow the PEPPOL PINT standards and is to be implemented in October 2023.  

 To be eligible to issue a “qualified invoice,” vendors must register with their local tax office by March 2023. The government recently announced that registration applications after this date will also be accepted, this is to ease the time burden on the taxpayers.  

Rather than being a mandate, this reform is a recommendation from the Japan Digital Agency (JDA). The new invoice system will, however, affect all Japanese businesses who wish to claim input tax. 

The UAE implemented VAT at 5% in January 2018 in accordance with the GCC (Gulf Cooperation Council) VAT framework.  The total revenue collected from VAT has reached more than Dh 95.4 billion ($26 billion) as of October 2021.  

“Now that we have passed the five-year mark since the introduction of VAT, it is fair to conclude that the tax has been a success and a true testament to the UAE’s ability to adapt to the new economic realities,” Nimish Goel, Partner at WTS Dhruva Consultants, spoke at the fifth anniversary of VAT. Additionally, reports have revealed that VAT will continue to be the primary source of tax revenues for a few more years in the country.  

Executive Decree No, 3, dated January 2023, has effectively amended Executive Decree No. 25, dated 27 June 2022.  

The amendment has introduced some significant modifications, in particular relating to the timeframe for e-invoicing timeline in Panama. In Panama, taxpayers can opt to use authorised fiscal equipment or process tax invoices through the national e-invoicing system, the Sistema de Facturacion Electronica de Panama (SFEP).  

The amendment confirms that the obligation to use e-invoicing is maintained from 2 January 2023 for the following entities:  

• Private entities authorized by the Panama Maritime Authority to guarantee compliance with construction, navigation, etc regulations; 

• Petroleum derivative cargo transportation services; 
• Hostels with less than 7 rooms; 
• Leasing real estate under notarized contracts or registered with the Ministry of Housing, by natural or legal persons that manage their own assets. 

However, the deadlines for the following entities have been extended: 

• 1 March 2023 for: 

• International public passenger transport services by land, air, or sea; and 
• National public transport services by air; 

• A phased approach starting from 30 April 2023, 30 June 2023, and 31 August 2023 for operations and services carried out by banks and other financial institutions, including financial leasing companies and investment funds, as well as banking credit, trust, or financial institutions governed by special laws, cooperatives, savings fund institutions, pension funds, retirement and social security funds, and savings and loan entities; and 
• 31 August 2023 for: 

• Operations carried out on the stock market; 
• Operations carried out by the Insurance sector; and 
• Operations carried out by other financial institutions not specified. 

The Ministry of Economy and Finance will separately regulate the phases and procedures for banks and other financial institutions. 

From 30 June 2023, invoicing obligations must also be met in respect of operations carried about by companies operating under the following regimes, which has been extended from 1 February 2023: 

• Baru Free Zone (Zona Franca del Barú); 
• City of Knowledge (Ciudad del Saber); 
• Free Zones (Zonas Francas); 

• Petroleum Free Zone (Zona Libre de Petróleo); 
• Multinational Enterprises Headquarters Regime (Sede Empresas Multinacionales – SEM); 
• Panama Pacifico Special Economic Zone (Área Económica Especial Panamá Pacifico – AEEPP); 
• Colon Free Zone (Zona Libre de Colón – ZLC); and 
• Multinational Company regime for the provision of services related to Manufacturing (Empresas Multinacionales para la prestación de servicios relacionados con la Manufactura – EMMA), which has been added to schedule. 

With respect to the SEM and EMMA regimes, invoicing through SFEP must be implemented considering that companies under these regimes are exempted from using authorised fiscal equipment. Invoicing requirements also apply for any other special zones or regimes that exist or may be created in the future. 

Please refer to the Resolution for further information: 

Gaceta Oficial Digital (mef.gob.pa) 

Last month, we informed you that the VAT in the Digital Age (ViDA) proposal had to be published in all EU languages before the period for feedback could commence. 

The proposal has now been translated into all EU languages, which effectively means that feedback (Consultation Period) for a period of 8 weeks, until 4 April 2023, has now commenced. 

The focus in recent weeks, from a European perspective, has been centred internally in Europe, what with the publication of the VAT in the Digital Age (ViDA) proposal. However, other initiatives are being launched which shed insight into the global outreach of e-invoicing.  

On 1 February 2023, the EU and Singapore announced the commencement of a new Digital partnership. Among other things, this digital partnership endeavours to promote co-operation in specific areas, with a focus on paperless trading and electronic e-invoicing.  

Tungsten will follow developments in respect of the Digital Partnership  and monitor any significant issues that arise as a result of this joint venture.