Finance & Procurement

July 2021: E-Invoicing & VAT compliance updates

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Introduction

Welcome to the July 2021 edition of OpenText’s E-Invoicing Regulation update.

OpenText wants its clients to be informed with the latest information related to the evolution of e-invoicing and VAT compliance around the world.

In alignment with this goal, we are pleased to share the latest changes in the industry.

The following changes are anticipated:


Compliance news updates

Europe

France: Reform 2023 – Focus on the latest working hypotheses of the DGFiP with regard to the obligation of e-Reporting

Spurred on by the emergence at an international level of continuous transaction control models (CTCs) the French government intends to generalize, from 2023, the use of electronic invoicing, as well as the transmission of additional data (‘e-Reporting’).

To this end, Article 195 of the Finance Law for 2021 provides that the Government is authorized to take by ordinance, any necessary measures by the end of September 2021 at the latest, aimed at the implementation of these obligations. At the same time, the AIFE should publish guidance notes specifying the functional and technical specifications related to these obligations, in particular with regard to the required semantic and syntactic formats.

In addition, a ratification bill is expected to be submitted to Parliament by the end of December 2021.

Italy: Postponement of the E-Document Legislation

By means of Decision no. 371/2021, the Agency for Digital Italy (AgID) has extended the entry into force of the Guidelines on the formation, management, and retention of IT documents to 1 January 2022.  Consequently, companies will have more time to adapt their e-archiving systems to the new Guidelines, which should have come into force on 7 June 2021. 

In this regard, it should be noted that, with reference to private taxpayers (e.g. companies), the Guidelines, compared to the previous legislation, define:

  • the extension of metadata to be associated with the IT document;
  • new formats for retention;
  • special rules and procedures for mass digitalization of paper documents;
  • new roles in the preservation process;
  • the possibility of appointing a retention manager from outside the company;
  • new requirements in relation to interoperability standards for preservation systems.

Poland: Draft bill introducing structured electronic invoices

The draft bill makes it possible for taxpayers to issue structured electronic invoices as one of the forms of documenting transactions (i.e. on top of the currently acceptable invoices issued in paper or electronic ways). The structured electronic invoices will be issued and received via the electronic platform KSeF.

The draft bill assumes that taxpayers will be issuing electronic invoices according to the officially published schema. The government underlines that an invoice can be drafted in a taxpayer’s financial system and then sent to KSeF.  Having received the invoice, KSeF will assign a unique number and a date to such an invoice. The invoice will be deemed as issued/received on the day when this unique number is assigned.

The draft bill assumes that the regulations will enter into force on 1 October 2021. In the initial phase, the use of structured electronic invoices will be voluntary, however, it is expected that it will eventually become mandatory in 2023.

Portugal: Further extension of deadline for use of PDF invoices

Order 133/2021-XXII of the State Secretary of Tax Affairs of 22 April 2021, adjusts the 2021 calendar of tax obligations free of any charges or penalties for taxpayers. The Order also extends until 30 September 2021 the term for the acceptance of invoices in PDF format as electronic invoices for all tax purposes.

Serbia: Draft law on e-invoicing for B2B and B2G transactions

The draft version of the Law on Electronic invoicing was published on the website of the Ministry of Finance. The draft law currently hasn’t been passed by the National Assembly of Serbia yet. The law is supposed to mandate among others:

  • the issuance of electronic invoices for B2B and B2G transactions;
  • the system of e-invoices;
  • the elements which e-invoices should contain; and
  • e-archiving

The provisions of the law are supposed to apply starting from 1 January 2022 for B2G transactions, while for B2B transactions reception and storage of e-invoices will be mandatory starting from 1 July 2022 and the issuance of e-invoices starting from 1 January 2023.

Slovakia: Public consultation e-Invoicing B2B

The E-invoicing initiative is currently in the process of consultations by the authorities of the Slovak Financial Directorate. Based on the authorities’ preliminary statements about e-invoicing, they are planning to introduce real-time reporting which should be mandatory for all transactions over time.

The aim of this initiative is to reduce administrative burdens on the side of tax subjects (e.g. to reduce obligatory VAT reporting) and to obtain real-time invoicing data on the side of tax authorities and use it for tax control purposes.

Mandatory e-invoicing should be introduced gradually, in the first phase for G2G, B2G transactions, and later on for B2B and B2C transactions; however, dates are yet to be released.

The Americas

Colombia: Digital Signature and New Technical Rules

The National Tax and Customs Directorate (DIAN) has made modifications to the law that created the electronic invoicing system in Colombia with Resolution 000012. One of the new measures that has been adopted is the mandatory inclusion of electronic signatures in invoices.

Despite being only recently made mandatory, this mechanism has been in place since the creation of the electronic invoicing system in Colombia.

Panama: Implementation of e-invoicing clearance model

Recently (June 1st 2021), the Tax Authorities have opened a voluntary process for e-invoicing in Panama. This is the first step towards a general mandate. Up to date no official specific date for this general mandate has been published, however, the Tax Authorities are making reference to FY22 as the implementation date.

US: Market Pilot Working Group building & testing a virtual network for the exchange of e-invoices

The Business Payments Coalition with support from the Federal Reserve will begin recruiting for a Market Pilot Work Group to build and test a virtual network that will enable businesses of all kinds to exchange e-invoices.

Interested stakeholders will be needed to develop and test the open-source tools and access points to be used in the pilot.

See here for additional information: https://fedpaymentsimprovement.org/news/blog/embrace-the-evolution-modernizing-b2b-payments/

Asia-Pacific and Rest of World

Australia: Funding for adoption of e-invoicing

The Government will provide $15.3 million in funding to increase awareness of the value of e-invoicing for all businesses. This follows the announcement that e-invoicing will be mandatory for all Commonwealth agencies from 1 July 2022.

This funding will support the Treasury and the Australian Peppol E-Invoicing Authority to improve business e-invoicing awareness and adoption. The aim is to assist in the adoption of Peppol e-Invoicing in the private and public sectors and lay further foundations for an expected national e-invoicing mandate.


Disclaimer: This newsletter is intended to reflect the direction the industry is moving and does not a reflection a commitment for the OpenText Active Invoices with Compliance (AIC) product development roadmap to meet any particular stated regulations.
LEGAL Disclaimer: The information contained in this newsletter is for general guidance on matters of interest only.  The authors are not herein rendering legal, accounting, tax or other professional advice and the content should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.  While we make every attempt to ensure the accuracy of the information contained within is from reliable sources, OpenText is not responsible for any errors or omissions, or for any results obtained from the use of this information. All information is provided “as is” with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance and fitness for purpose.  In no event will OpenText or its agents or employees be liable to you or anyone else for any decision made or action taken in reliance on the information in this Site or for any consequential, special or similar damages.

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