E-Invoicing & E-Reporting developments in the news in week 48 & 49/2023

Follow the latest updates on E-Invoicing and Real Time Reporting on www.vatupdate.com and the LinkedIn pages on E-Invoicing/Real Time Reporting and ViDA.

Highlights of week 48/49

European Union – ViDA:
- No agreement has been found in the European Councile on DRR (Digital Reporting Requirements) as part of ViDA.
- It will be looking forward to the Belgian presidency of the European Council how the proposal will develop. Concerns of business like the abolishment of the Summary Invoices and the 2+2 day reporting period of transactions seems to be reconsidered.
Estonia’s Ministry of Finance Proposes B2B E-Invoice Options in Upcoming Accounting Act Amendment
- Estonia’s Ministry of Finance introduced an amendment to the Accounting Act in 2017, mandating the use of e-Invoices in B2G transactions. These electronic documents must be generated in an XML-based format and can be transmitted through various channels. The government is now amending the Accounting Act to allow buyers in established B2B transactions to request electronic invoices from their suppliers. The changes are estimated to take effect after 2025 and will improve digital invoicing and provide more options for B2B transactions in Estonia
France
- National Assembly Review: The French Senate’s proposal to advance the launch of B2B e-invoicing to July 2025 for large enterprises is expected to face resistance in a National Assembly review. The Assembly has previously rejected other Senate amendments to the 2024 Finance Bill, indicating potential challenges to this proposal as well.
- Revised Timetable: The Senate’s amendment aims to accelerate the mandatory e-invoicing timeline, moving it from the initially planned September 2026 to July 2025 for large companies. However, B2C e-reporting for large enterprises is still scheduled to commence in September 2026.
- Senate Proposals: The specific details of the Senate proposals include:
  - July 2025: B2B e-invoicing for large companies (more than 5,000 employees) meeting certain financial criteria.
  - September 2026: B2B e-invoicing and B2C e-reporting for medium-sized companies.
  - September 2027: E-invoicing and e-reporting for small businesses.
Germany
- The Bundesrat, Germany’s Parliament upper house, has rejected a 1-year extension proposed by the Bundestag (lower house) for the full rollout of e-invoicing in B2B transactions. The Bundesrat sought a 2-year delay, resulting in a deadlock between the two houses.
- The legislation, including the e-invoicing mandate, is now in the hands of a joint Mediation Committee, which will work towards resolving the differences this month.
- One important compromise made by the Bundestag was to allow the continued use of existing EDI structured e-invoices if both parties agree, providing a long-term solution alongside the mandatory e-invoicing requirements.
Italy: From 2024, electronic invoicing is mandatory for all taxpayers
- Starting from 1 January 2024, the obligation for electronic invoicing will come into force for all minimum and flat-rate taxpayers: regardless of the amount of revenues/compensations, they will be required to issue an electronic invoice via the Exchange System. For all these taxpayers, the time has come to organize themselves, purchasing a management program for issuing electronic invoices or relying on the free services made available by the Revenue Agency.
Poland: Consultations Begin for Poland’s 2024 National E-invoicing System (KSeF)
- The Ministry of Finance has started talks on two executive decrees to regulate the use of the KSeF e-invoicing system, which will become mandatory nationwide on July 1st, 2024. The first decree will address issues of access to the system in emergency offline mode and agricultural VAT RR invoices. It will also provide more details on the use of invoice QR codes and authentication methods. The second decree will update existing regulations on issuing invoices to align with KSeF specifications and streamline reporting on continuous services. For more information on e-invoicing in Poland, visit our dedicated website to stay updated on new regulations.
Portugal will delay the electronic signature for PDF and XML invoices mandate
- Electronic invoices in PDF and XML formats are currently considered equivalent to paper invoices without additional certifications or signatures. However, the Portuguese Tax and Customs Authority plans to require the validation of electronic invoices with Qualified Electronic Signatures. The requirement for PDF invoices to feature the Qualified Electronic Signature, originally set for January 1, 2024, has been postponed to January 1, 2025. This gives businesses more time to prepare for compliance with the new regulations.
Saudi Arabia’s Ninth Wave of Phase 2 E-Invoicing Integration: Criteria and Deadlines
- The Saudi Arabia Zakat, Tax, and Customs Authority (ZATCA) has announced the criteria for taxpayers included in the ninth wave of Phase 2 e-invoicing integration.
- Taxpayers with a taxable turnover exceeding SAR30 million in either 2021 or 2022 are part of this wave and must integrate their electronic invoicing systems with ZATCA’s e-invoicing platform, Fatoora.
- The deadline for compliance with Phase 2 requirements for taxpayers in the ninth wave is between June 1, 2024, and September 30, 2024. It is important for taxpayers to comply to avoid potential penalties. Taxpayers outside the first eight waves should monitor ZATCA announcements for relevant integration timelines.
Spain: Royal Decree setting out Verifactu invoicing and billing software requirements has been published
- The Spanish government has finalized and published a Royal Decree establishing software requirements for invoices to comply with anti-fraud regulations in Spain as part of digitization measures for tax controls.
- The decree sets new deadlines for taxpayers and software developers. Starting from July 1, 2025, only approved billing systems can be used by taxpayers subject to certain taxes.
- Developers and sellers of billing software must adapt their products within nine months of the approval of the Ministerial Order, which specifies the technical details. These requirements apply to corporate taxpayers, individuals earning income from economic activities, non-residents with a permanent establishment in Spain, and entities engaged in economic activities under the income allocation system. Companies outside these categories are not required to comply.
UAE is moving towards introducing Peppol by July 2025
- The UAE Ministry of Finance has announced plans to implement a countrywide e-invoicing mandate by July 2025, using Peppol specifications. The aim is to simplify business processes, improve tax reporting, offer real-time economic insights, and reduce paper waste. The “E-Billing System” project will automate tax return filing and improve compliance, with a gradual implementation plan.
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