E-Invoicing & E-Reporting developments in the news in week 7/2025

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HIGHLIGHTS

EU Parliament Advances ViDA Reforms, Final Ratification Expected by March 2025
- Approval of ViDA Package: On February 12, 2025, the EU Parliament approved the VAT in the Digital Age (ViDA) package, following a political agreement among member states. This package aims to modernize the VAT system by introducing mandatory digital reporting requirements, e-invoicing, and new rules for the platform economy, with full implementation expected by 2035.
- Key Reforms and Implementation Timeline: ViDA includes significant reforms such as the expansion of the One-Stop Shop (OSS) for cross-border transactions by July 2028, mandatory VAT collection for online platforms by January 2030, and a full transition to digital reporting and structured e-invoicing by July 2030. These changes are designed to enhance compliance, reduce fraud, and streamline VAT management for businesses.
- Impact on Tax Compliance and Fraud Prevention: The ViDA package aims to tackle an estimated €11 billion annual loss in VAT revenues due to fraud by implementing real-time digital monitoring and improved transparency. The phased rollout of these reforms will require businesses to adapt to new compliance requirements, ultimately leading to a more efficient and harmonized VAT system across EU member states.
UK Government Launches Consultation on e-Invoicing: A Step Toward Digital Efficiency
- Public Consultation Initiative: On February 13, 2025, the UK Government initiated a public consultation to accelerate the adoption of electronic invoicing (e-Invoicing) across businesses and the public sector, aligning with global digital tax reforms like the EU’s VAT in the Digital Age (ViDA) initiative. The consultation aims to gather input from various stakeholders on implementing a standardized e-Invoicing framework that enhances efficiency, reduces administrative burdens, and ensures compliance.
- Key Focus Areas for Feedback: The consultation addresses several critical areas, including whether e-Invoicing should be mandatory or voluntary, the standards for interoperability with existing systems, the government’s role in implementation, and how e-Invoicing can be integrated with the UK’s VAT reporting system to strengthen tax compliance and reduce fraud.
- Expected Benefits and Next Steps: A structured e-Invoicing system is anticipated to provide substantial benefits, including reduced errors, faster payments, and improved tax compliance for businesses, while enhancing transparency and efficiency for the government. The consultation will conclude in April 2025, with the government analyzing feedback and potentially releasing a roadmap for e-Invoicing implementation later in the year, indicating a significant shift towards digital tax compliance in the UK.
Bolivia postpones deadline to comply with the e-invoicing obligation for taxpayer groups 10 and 11
- Deadline Extension: The Bolivian National Tax Service (SIN) has postponed the deadline for taxpayer groups 10 and 11 to issue digital tax documents from February 1, 2025, to March 1, 2025.
- Resolution Details: This change was announced in Resolution No. 102500000006, which revises previous resolutions regarding the online billing modality for issuing digital tax documents.
- Impact on Taxpayers: The extension will affect 7,586 taxpayers, who can find more information about their obligations on the National Tax Service’s website.
Botswana: E-invoicing solution set to transform tax compliance in Botswana by March 2026
- Electronic Invoicing Initiative: The Minister of Finance and Economic Development highlighted the implementation of an electronic invoicing solution as a pivotal initiative in the 2025/2026 Budget Speech, aimed at enhancing tax compliance and efficiency with a completion target set for March 2026.
- Strategic Tax Law Reforms: The budget outlines ongoing strategic tax law reviews, including the introduction of three key tax bills: a new Tax Administration Act, a revised Income Tax Act, and a revised VAT Act, all designed to strengthen the tax framework.
- Enhanced Tax Compliance Measures: The Botswana Unified Revenue Service (BURS) plans to implement various measures to boost compliance, including introducing VAT on digital transactions by September 2025 and employing technology-driven solutions for real-time tracking of VAT transactions, which will improve reporting accuracy and reduce illicit trade.
Brazil Introduces NFCom as a New Mandatory E-Invoicing Requirement
- Updated Implementation Timeline: Brazil’s SINIEF Adjustment No. 34/24 establishes that the mandatory adoption of NFCom, a new invoicing requirement for ICMS taxpayers, will begin on November 1, 2025, streamlining invoicing for Communication and Telecommunications services.
- Real-Time E-Invoicing Features: NFCom will introduce real-time validation and a standardized XML format, replacing the outdated models and improving compliance efficiency. Key features include event tracking, digital signatures, and mandatory archiving for five years.
- Impact on Telecommunications Sector: The NFCom is expected to significantly enhance compliance and reduce operational costs for the telecommunications industry, which plays a crucial role in Brazil’s economy, with over 336 million active service contracts as of January 2023. Businesses can test NFCom transmissions and voluntarily adopt the system before the official deadline.
Malaysia – New e-Invoice Guideline Version 4.1 and Specific Guideline Version 4.0
- Revised E-Invoice Guidelines: On January 28, 2025, the Inland Revenue Board of Malaysia published updated versions of the e-invoice Guidelines (v.4.1) and Specific Guidelines (v.4.0), which clarify rules regarding self-billed transactions, exceptions for self-billed e-invoices, and the consolidation of self-billed transactions.
- Exemptions and Consolidation Rules: The new guidelines specify that certain international organizations are exempt from issuing e-invoices, including self-billed invoices. Additionally, consolidation of self-billed transactions is generally disallowed, with exceptions for claims from insurance companies to non-business individuals and transactions involving taxpayers’ overseas branches.
- New Requirements for Self-Billed E-Invoices: Buyers must now issue self-billed e-invoices for specific transactions such as capital reductions and liquidation proceeds. The guidelines also clarify exceptions for self-billed e-invoices related to interest payments, including new provisions for interest paid to related companies and late payment charges, which must be implemented by July 1, 2025.