E-Invoicing & E-Reporting developments in the news in week 16/2025

New LinkedIn Group: Global E-Invoicing & Real Time Reporting developments

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.

Podcasts on E-Invoicing & E-Reporting mandates on Spotify

HIGHLIGHTS OF WEEK 16/2025

Poland: KSeF 2.0 is taking shape. What does the latest bill change?
- Launch Dates and Predictability: The mandatory implementation of the National e-Invoicing System (KSeF) will start on February 1, 2026, for businesses with gross sales exceeding PLN 200 million, and on April 1, 2026, for smaller entities. The sales threshold will now be based on 2024 data, providing greater predictability for businesses regarding their compliance requirements.
- Transitional Periods and Micro-Entrepreneur Limits: Transitional periods for compliance have been extended to December 31, 2026, including the phase-out of simplified invoices and the introduction of sanctions. However, limits for micro-entrepreneurs remain unchanged, which may create practical challenges for small businesses that struggle to meet the criteria for issuing invoices.
- B2C Invoices and Offline Mode: The use of KSeF for B2C transactions remains voluntary, allowing flexibility for businesses. A permanent offline mode is introduced, enabling businesses to issue invoices outside the KSeF system, but the deadline for sending these invoices to KSeF remains short (the next business day), raising concerns about practicality in case of technical issues. The requirement to provide the KSeF number in B2B transfers is postponed until January 1, 2027, though it remains a contentious issue.
Future of E-Invoicing in Canada: Trends, Challenges, and Preparation for Businesses
- Current Status and Trends in Canada: Canada has not yet implemented a mandatory federal e-invoicing system, with businesses still relying on traditional methods like email and PDFs. However, some provinces, such as Quebec, are exploring electronic reporting models, and private companies in sectors like retail and pharmaceuticals are starting to adopt electronic data interchange (EDI) solutions, indicating a potential shift toward regulation in the near future.
- Geoeconomic Context and Pressure for Adoption: As a G7 and OECD member, Canada faces silent pressure to adopt e-invoicing, especially given its strategic position between regions with established e-invoicing frameworks, such as Latin America and Europe. This context suggests that the absence of a federal mandate is increasingly seen as an anomaly rather than the norm.
- Advantages of Early Preparation: Companies that proactively adopt e-invoicing solutions can improve operational efficiency, enhance resilience to regulatory changes, strengthen business relationships, and reduce costs associated with last-minute compliance. Strategic preparation involves implementing compatible technologies, mapping internal processes, monitoring regulatory developments, and training teams to ensure readiness for future mandates.
Chile’s E-Invoicing and New Tax Documentation Rules
- Chile’s resolution mandates electronic documentation of sales exceeding 135 UF, requiring detailed buyer identification and payment method recording starting September 2025.
- Businesses must adapt systems for electronic invoicing, ensuring compliance with new tax regulations and maintaining internal sales records from June 2025.
- Non-compliance will result in penalties under the tax code, emphasizing the importance of adhering to updated documentation requirements.
Israel advances timeline for allocation number requirements
- Accelerated Timelines for Allocation Numbers: The Knesset Financial Committee has announced new, shorter timelines for Israeli taxpayers to request allocation numbers, moving the deadlines from 2028 to specific dates in 2026 based on invoice amounts.
- New Invoice Amount Thresholds: Starting January 2026, taxpayers will need to request allocation numbers for invoices exceeding 10,000 NIS (approximately 2,450 EUR) before VAT, and by June 2026, for invoices exceeding 5,000 NIS (approximately 1,220 EUR) before VAT.
- Reduced VAT Reporting Threshold: The Finance Committee has also decided to lower the threshold for submitting detailed VAT reports to 500,000 NIS, effective by October 2025, although these measures will only take effect after approval by the Knesset Plenum.
Morocco to implement Mandatory E-Invoicing in 2026
- Mandatory E-Invoicing in Morocco: Starting in 2026, Morocco will implement mandatory electronic invoicing, led by the General Directorate of Taxes (DGI) to improve fiscal efficiency, transparency, and combat tax evasion.
- Implementation Phases: The roadmap includes key phases: public consultation and platform development in October 2024, a pilot phase with volunteer companies in October 2025, and a gradual rollout starting early 2026, prioritizing larger companies first.
- System Design and Security: The DGI is considering a post-audit or Continuous Transaction Control model, opting for a decentralized system using authorized providers. The platform will use microservices architecture, ensuring scalability, interoperability with international standards, and enhanced security with electronic signatures.
Slovakia adopts Peppol Network for Decentralized E-Invoicing System
- The Financial Administration of Slovakia has launched a project to implement mandatory electronic invoicing in the B2B sector, aiming to automate the invoicing process from preparation to submission to the authorities.
- The project will utilize the Peppol network for a decentralized and secure method of sending electronic invoices, transitioning from vulnerable PDF formats to a standardized XML format, eliminating the need for prior customer consent for delivery methods.
- This initiative will enhance efficiency, reduce processing times, and create opportunities for certified providers to offer electronic document delivery services, fostering a competitive environment in the invoicing sector.
Spain Extends E-Invoicing Deadline, Introduces New Exemption for Third-Party Invoicing Compliance
- Extended E-Invoicing Deadlines: Spain’s Royal Decree 254/2025 postpones the implementation of the Veri*Factu system, with new deadlines set for corporate income taxpayers by 1 January 2026 and all other taxpayers by 1 July 2026, while producers and retailers must have compliant systems by 29 July 2025.
- Veri*Factu System Overview: The Veri*Factu regulation mandates businesses to integrate a tax reporting tool into their invoicing software to directly report invoices to the tax agency, enhancing compliance with updated invoicing requirements.
- Exemptions Introduced: Taxpayers using the Immediate Supply of Information (SII) to manage VAT records are exempt from the Veri*Factu system, including those issuing invoices through third parties under specific conditions.
Swedish Tax Agency Prevents SEK 534 Million VAT Fraud, Supports Mandatory E-Invoicing Measures
- The Swedish Tax Agency halted incorrect VAT payments totaling SEK 534 million last year, suspecting that organized crime networks exploit companies to commit fraud through false invoices, with consistent losses of over SEK 500 million in recent years.
- The agency employs a risk-based approach for in-depth reviews of VAT returns and emphasizes that incorrect VAT payments not only harm public finances but also fund other criminal activities, as stated by Kristoffer Bergdal from the agency.
- In response to VAT fraud, the EU has introduced new rules under “VAT in the Digital Age” (Vida), mandating electronic invoicing and digital transaction reporting for cross-border trade by 2030, which the Swedish Tax Agency believes would significantly mitigate current fraud risks if adopted nationally.