E-Invoicing & E-Reporting developments in the news in week 5/2025

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HIGHLIGHTS

Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
Bahrain’s Electronic Invoicing Initiative
- Electronic Invoicing Initiative: Bahrain is exploring the implementation of an electronic invoicing system to enhance VAT compliance and revenue collection, following successful models in Egypt and Saudi Arabia.
- Background on VAT Evolution: Initially adopting a 5% VAT in January 2019, Bahrain increased the rate to 10% in January 2022 to address economic challenges from the COVID-19 pandemic, making the introduction of electronic invoicing a vital strategy for improving tax transparency and reducing fraud.
- Goals and Benefits: The adoption of electronic invoicing aims to simplify administrative processes for businesses, optimize economic policy through better data access, and support Bahrain’s fiscal balance program, ultimately enhancing economic transparency and tax compliance.
Bulgaria to Introduce Mandatory SAF-T Reporting for Tax by January 2026 with Grace Period
- Mandatory SAF-T Reporting: Bulgaria plans to implement mandatory SAF-T reporting starting January 2026, beginning with large enterprises and gradually extending to medium and small enterprises, with micro-enterprises included by January 2030.
- Filing Requirements: Taxpayers will be required to submit SAF-T files monthly by the 14th of the month following the reporting period, while information on fixed assets must be submitted annually.
- Grace Period for Compliance: A six-month grace period will be provided for the first SAF-T submission, during which taxpayers will not face penalties for non-compliance.
Croatia to Introduce Mandatory Electronic Invoicing and Financial Reporting Tools by 2026
- Introduction of eInvoices: The Croatian government will launch the “Fiscalization 2.0” tax package as of Jan 1, 2026, implementing eInvoices as a new VAT reporting system to fiscalize transactions between entrepreneurs and between entrepreneurs and the state, enhancing the digitization of the tax system.
- Administrative Relief for Taxpayers: Finance Minister Marko Primorac emphasized that Fiscalization 2.0 aims to simplify tax collection and reduce administrative burdens for taxpayers by eliminating numerous tax forms and introducing a free application, “FiskApplication,” for managing fiscalized data.
- Reengineering Financial Processes: The initiative includes plans to reengineer the Register of Annual Financial Statements and allows local self-government units to choose whether to collect real estate taxes independently or transfer this authority to the tax administration, promoting efficiency and fairness in tax assessment.
Jordan Prepares Phase 2 of the JoFotara Electronic Invoicing System
- Implementation Timeline and Requirements: The second phase of the JoFotara electronic invoicing system will commence on April 1, 2025, requiring all goods and services to have original, tax-compliant invoices for tax deduction eligibility, with a registration deadline for businesses set for May 2024.
- Objectives of the JoFotara System: The initiative aims to enhance transparency and data collection for tax authorities, facilitating electronic invoice submissions through a national platform, which will include a QR code verification process for declared invoices.
- Challenges and Recommendations: Jordan currently lacks a harmonized electronic invoicing system, complicating accountability and data interchange. The government seeks to address fiscal fraud and improve user accessibility while enhancing security for electronic transactions, with further implementation details expected to be published soon.
Latvia Mandates Structured E-Invoices for B2G (2025) and B2B (2026) transactions
- E-Invoicing Requirement for Government Transactions: Beginning January 1, 2025, businesses in Latvia must issue structured e-invoices for invoices directed to Latvian budgetary institutions in the B2G and G2G sectors, adhering to specific technical standards.
- Expansion to B2B Sector: The second phase of e-invoicing implementation will commence on January 1, 2026, extending the requirement to the business-to-business (B2B) sector.
- Preparation of Technical Framework: The Latvian State Revenue Service is tasked with developing the technical framework and rules for e-invoice exchange and reporting by July 1, 2025.
Norway’s Mandatory B2B e-Invoicing: Enhancing Financial Processes and Tax Compliance
- Mandatory e-Invoicing Initiative: Norway is exploring the implementation of mandatory electronic invoicing (e-Invoicing) to improve its financial and tax systems, streamline invoicing processes, enhance tax compliance, and reduce administrative burdens for businesses.
- Current Landscape and PEPPOL Framework: Since 2012, e-Invoicing has been mandatory for suppliers to public administrations in Norway, utilizing the PEPPOL framework for standardized electronic document exchange. This requirement is already in place for Business-to-Government (B2G) transactions.
- Future Expansion Plans: Norway is considering expanding mandatory e-Invoicing to a wider range of transactions, aligning with global trends to enhance tax compliance and combat fraud. Businesses in Norway should prepare for these changes and stay informed about the evolving invoicing landscape.