Luxembourg VAT Requirements

Q: What is SII reporting in Spain?

The Immediate Supply of Information ( Suministro Inmediato de información ) SII is a system for keeping the Value Added Tax record books in the local Tax Authority’s electronic headquarters by supplying VAT-relevant information on a near-real-time basis.

Luxembourg to implement SAF-T and e-invoicing

Luxembourg is one of many European countries to implement SAF-T and e-invoicing to provide greater visibility into a wide range of business, accounting and tax data.

Luxembourg introduced SAF-T requirements in 2011. In 2019 the country introduced an e-invoicing legislation.

Luxembourg is part of the EU single market economy and falls under the EU VAT regime. The EU issues VAT Directives laying out the principles of how the VAT regime should be adopted by Member States. These Directives take precedent over any local legislation.

VAT law within the country is administered by the Administration de l’Enregistrement et des Domaines and is contained within the General Tax Code.

Have questions? Get in touch with a Sovos Luxembourg VAT compliance expert.

Quick facts on Luxembourg's e-invoicing

Just like in any other EU Member State, e-invoicing is permitted in Luxembourg, subject to the buyer accepting the exchange of electronic invoices.
Businesses must ensure integrity of invoice content and authenticity of origin for their invoices. Integrity and authenticity can be proved using Advanced Electronic Signatures, ‘proper EDI’ with an interchange agreement based on the EC 1994 recommendation, and Business Controls-based Audit Trail.
In May 2019, Luxembourg adopted legislation about e-invoicing in public procurement following the EU Directive 2014/55/EU. The Directive states that e-invoices will continue to be exchanged voluntarily by suppliers to the government and the centralised PEPPOL access point will continue to be used.
Prior authorisation is required before outsourcing to a service provider – written authorisation is recommended.

Invoices stored in electronic form must have evidence of their integrity and authenticity stored electronically as well.
E-invoices may only be stored in EU Member States (or other countries) of which Luxembourg has signed a mutual tax assistance treaty – prior to notification and access.
VAT returns may be filed monthly, quarterly or annually electronically through Luxembourg’s online platform (eCDF) via PDF or XML format. Alternatively, annual filings can be made either in electronic format through the portal or via sending a paper copy of the VAT return to the requisite tax office.
To submit tax returns electronically, taxpayers must ensure the service provider they use is certified within eCDF.

Luxembourg’s SAF-T reforms

Officially implemented in 2011, Luxembourg’s Standard Audit File for Tax (SAF-T) is locally known as Fichier Audit Informatisé AED (FAIA).

Businesses must, if requested, submit their financial data electronically in a format that is compliant with AED electronic audit file specifications (i.e., in the specified FAIA format). Only resident businesses subject to the Luxembourg Standard Chart of Accounts must file the FAIA.

Mandate rollout dates for Luxembourg SAF-T and e-invoicing

2011 – Introduction of SAF-T, known as Fichier Audit Informatisé AED (FAIA)

2019 – Adoption of e-invoicing legislation in public procurement with 2014/55/EU Directive

How can Sovos help with VAT compliance?

Need help to ensure your business stays compliant with evolving e-invoicing, reporting and SAF-T obligations in Luxembourg?

Keeping up with VAT compliance obligations has become more difficult as Luxembourg continues to take steps to reduce its VAT gap and modernise the system.

Our experts continually monitor, interpret and codify changes into our software, reducing the compliance burden on your tax and IT teams.

Learn how Sovos’ solutions for changing SAF-T and VAT obligations can help companies stay compliant.

Slovakia VAT Requirements

Slovakia expands continuous transaction controls (CTCs)

The modernization of tax and tax controls remains a high priority for Slovakia’s tax authority. The Slovakian Ministry of Finance plans to introduce a continuous transaction control (CTC) scheme, with the aim to lower Slovakia’s VAT gap to the EU average and obtain real-time information about underlying business transactions.

The Slovakian tax authorities have begun to introduce mandatory business to government (B2G) and government to government (G2G) e-invoicing via the IS EFA platform. Regarding business to business (B2B) and business to consumer (B2C) e-invoicing, there is currently no indication when the mandate will be rolled out, yet the IS EFA platform is planned to also be used for B2B e-invoicing.

Have questions? Get in touch with a Sovos Slovakia CTC expert.

Quick facts on Slovakia E-Invoicing and VAT reporting

e-Invoicing

Just like in any other EU Member State, e-invoicing is permitted in Slovakia, subject to the buyer accepting the exchange of electronic invoices.
While Slovakia today is considered a post audit jurisdiction, a CTC reform is currently underway.
The implementation of the mandatory B2G and G2G schedule for the involvement of government and public administration institutions as well as for their suppliers, is expected to happen progressively throughout 2023 and 2024.
E-invoices can be stored in another Member State without notification, provided they are made available in Slovakia should they be requested by the tax authority.

VAT Reporting

Filed either monthly or quarterly and must be submitted through a downloadable form issued by the Slovakian tax authority.
Additionally, Slovakia requires the submission of the Slovak Control Statement.
Data submitted to the tax authority must be in XML format.

Infographic

Slovakia CTC Requirements

Understand more about Slovakia’s CTC requirements including when businesses need to comply and how Sovos can help.

Learn More

Slovakia's upcoming CTC reform

The Slovakian tax authorities have begun to slowly introduce mandatory B2G and G2G e-invoicing via the IS EFA platform, but there is currently no indication if/when a business to business (B2B) and business to consumer (B2C) mandatory e-invoicing mandate will be rolled out. The previous government decided to freeze the B2B and B2C element of the CTC mandate, with no clear date when it will be implemented, or if the information outlined in the original draft legislation will be maintained in the future.

According to the unpublished CTC draft law, which has been put on hold by the current government, suppliers would have to report invoice data to the tax authority’s e-invoicing platform, IS EFA, before issuing them to their customer. Similarly, buyers would have to report data from the received invoice.

Mandated E-Invoicing rollout dates

B2G and G2G throughout 2023 and 2024

B2B and B2C TBD

How can Sovos help with VAT compliance?

Sovos software already addresses the periodic reporting requirements facing companies with VAT compliance obligations domestically in Slovakia, as well as those with obligations due to trade with counterparties in other EU Member States and third countries.

Building on our existing commitment to Slovakia and pending the release of official information and detailed specifications, we’re planning further development to our core CTC platform to ensure our customers remain continually compliant with Slovakian CTC regulations, in line with the emerging digitization of tax controls in Slovakia.

Learn how Sovos’ solution for VAT compliance changes can help companies stay compliant.

Vietnam’s E-Invoicing Launch

Introducing e-invoicing mandates for VAT in Vietnam.

Over the last 10 years, the Vietnamese government has worked on developing a solution to tackle the country’s VAT fraud and the VAT gap, introducing an e-invoicing mandate for all companies doing business in Vietnam from 1 July 2022.

Have questions? Get in touch with a Sovos Vietnam e-invoicing expert.

Vietnam's E-Invoicing Mandate Rollout - 2022

The Vietnam e-invoicing mandate was initially slated to be in force by July 2020, but ultimately was delayed. In October 2020, a new timeline was laid out through Decree 123 announcing implementation dates for the new e-invoicing mandate rules that were originally envisaged in the Law on Tax Administration.

An initial rollout will begin from March 2022 to a select number of provinces and cities. The country’s new e-invoicing requirements will come into effect nationwide on 1 July 2022.

Quick facts about the new e-invoice processes in Vietnam

Applicable taxpayers in Vietnam will be required to issue e-invoices for their transactions from 1 July 2022.
Legal framework must be followed for all e-invoice submissions.
Enterprises, organisations (economic or otherwise), business households and individuals must register with the local tax administration to start using e-invoicing.
There are two types of e-invoicing processes in Vietnam. Authenticated invoices are granted an authentication code by the tax authority before the invoice is transmitted to the buyer, whereas unauthenticated e-invoices do not require the tax authority’s authentication code.

Electronic invoices must be issued in XML format.
VAT, sales invoices, and the invoices used for selling public assets are among the documents under the scope of the e-invoicing mandate.
Ensuring of the integrity and authenticity of the e-invoices is required and must be digitally signed by the supplier.
E-invoices must be archived electronically and taxable persons may choose archiving methods guaranteeing security and integrity and authenticity during the entirety of the archiving period.
Service providers meeting specific requirements can provide the contracting parties with e-invoicing solutions.

E-invoicing system mandate rollout dates

March 2022 – Vietnam General Taxation Department (GTD) will first work with six local tax administrations: Ho Chi Minh City, Hanoi, Binh Dinh, Quang Ning, Hai Phong and Phu Tho to start implementing technical solutions for new e-invoicing requirements and construction of an IT system for connection, data transmission, reception and storage of data.
April 2022 – E-invoicing system will be rolled out to the remaining provinces and cities.
1 July 2022 – All cities and provinces must deploy the e-invoicing system based on the rules established in Decree 123 and the Circular that provides guidance and clarification to certain aspects of the new e-invoicing system.

How can Sovos help with VAT compliance?

Need help to ensure your business stays compliant with evolving e-invoicing requirements?

Our experts continually monitor, interpret and codify changes into our software, reducing the compliance burden on your tax and IT teams.

Learn how Sovos’ solutions for continuous transaction controls and VAT compliance obligations can help your company stay compliant.

Philippines VAT Requirements

VAT in the Philippines

There have been improvements in recent years to VAT revenue collection in the Philippines, but there are a considerable number of exemptions from the country’s 12% VAT rate.

After receiving funding from South Korea to investigate and adopt a CTC e-invoicing regime, the Philippines is expected to roll out a phased VAT control reform over the coming years.

Get the information you need

CTC reforms

In 2018, the Philippines launched the Tax Reform for Acceleration and Inclusion (TRAIN), which included several tax reform proposals.

The TRAIN proposals included the requirement for large taxable persons who were engaged in e-commerce or export to issue e-invoices, e-receipts and to report sales data to the country’s tax administration, the Bureau of Internal Revenue (BIR).

Quick facts

In July 2022, the Department of Finance (DOF) intends to launch a CTC e-reporting system pilot program covering B2B invoicing and B2C receipts per the TRAIN law mandate. By this date, the 100 largest taxpayers in the country must be live with the system.
E-invoice data must be reported in JSON format and contain the issuer’s electronic signature.
All e-invoice data and e-receipts must be transmitted to the tax authority’s invoice system (EIS) either immediately after issuance or in a batch submission once per day (near real-time).
E-invoice data reporting and e-receipt reporting can be done either through dedicated APIs or through the BIR’s web portal.
Suppliers can deliver invoices to customers electronically via email in PDF format or as a hard copy.
E-invoices must be archived for 10 years.

Mandate rollout dates

2018 – TRAIN law was introduced.

End of January 2022 – Pilot program environment was made available to eligible taxpayers to establish test connectivity and verify file formats.

April 2022 – Six pilot companies will test the system end-to-end by transmitting e-invoices to the EIS.

July 2022 – 100 pilot taxpayers, including the initial six will have to report all their invoicing data to the EIS through the new system.

One Pager

Philippines CTC Requirements

Understand more about Philippines’ continuous transaction controls including when businesses need to comply, and how Sovos can help.

Show All Facts

How can Sovos help?

Do you need help ensuring your business stays compliant with the upcoming e-invoicing obligations in the Philippines?

Sovos already provides early adopters with a solution connected to the Philippines Tax Authority Platform and helps other taxpayers prepare for the extended rollout of the CTC e-reporting system.

Learn how Sovos’ solution for VAT compliance changes in the Philippines can help your business stay compliant.

China's E-Invoicing Expansion

The move to customer facing e‑invoices grows in China.

China’s VAT digitization journey began nearly two decades ago with the rollout of a tax regime called the Golden Tax System. This created a national taxation platform for reporting and invoicing, as well as legislation regulating the use and legal effect of e-signatures.

With the increase of mobile payment adoption, the push towards customer-facing e-invoicing grows. The Chinese government has taken initiatives to further reform reporting and invoicing with a proposed nationwide e-invoicing service platform to provide an e-invoice issuance service to all taxpayers free of charge.

Have questions? Get in touch with a Sovos China e-invoicing expert.

VAT digitization reforms

E-invoicing has been gradually introduced in China, starting with the B2C segment – in some cases by mandating large amounts of taxpayers in the public service sector to issue VAT e-invoices to their customers.

Whilst e-invoicing is not yet fully permitted, the issuance of e-invoices has been widely accepted in B2C instances for several years. They are mandatory in certain core service-based industries including telecommunications and public transportation. Invoices are issued via the national system with hardware and software certified by the state authority.

A pilot program was launched in September 2020, which enables specific taxpayers operating within China to voluntarily issue VAT special e-invoices. Special invoices are used to claim input VAT and are generally used in B2B transactions.

Quick facts about e-invoices

E-invoices must have an electronic signature instead of the original invoice stamp.
Taxpayers can use the tax authority’s platform for VAT services to check and verify the electronic signature of e-invoices.
Accounting documents, including invoices, may be stored electronically provided that the e-archive meets integrity and authenticity criteria, and the processing system adheres to requirements on functionality and security.

Mandated e-invoicing rollout dates

September 2020 – China’s e-invoicing pilot program began allowing e-invoice issuance for B2B purposes. It initially only included Ningbo, Shijiazhuang and Hangzhou.
December 2020 – Pilot expanded to include Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Guangdong, Chongqing, Sichuan and Shenzhen.

January 2021 – Pilot further expanded to include Beijing, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Fujian, Jiangxi, Shandong, Henan, Hunan, Guangxi, Hainan Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Dalian, Xiamen and Qingdao.
December 2021 – A new pilot program, only for selected taxpayers, started in Shanghai, Inner Mongolia and Guangdong, introducing the so called “fully digitized e-invoice”, a new type of e-invoice that simplifies the e-invoice issuance for both B2B and B2C purposes.

How can Sovos help with VAT?

As China’s new e-invoicing program will shortly expand to include most companies, we inch ever closer to full scale e-invoicing possibilities in China.

Our experts continually monitor, interpret and codify changes into our software, reducing the compliance burden on your tax and IT teams.

Register your interest now to learn how Sovos’ solution for tackling this major VAT reform in China will help your company stay compliant.

Tax in Romania: All you need to know about Romania’s VAT regime

Romania introduces measures to digitally transform its tax administration and close the VAT gap

Seeking to close its VAT gap, the Romanian tax authorities have been discussing the idea of implementing measures to combat the country’s ever-increasing VAT gap. After years of discussion, the country announced its Standard Audit File for Tax (SAF-T) initiative which began in January 2022.

Have questions? Get in touch with a Sovos expert on tax in Romania

Tax in Romania: Romania’s SAF-T reforms

The Organisation for Economic Co-operation and Development (OECD) introduced SAF-T in 2005, and Romania joins a long line of European Member States adopting this form of tax legislation.

From 1 January 2022, companies in the General Directorate for the Administration of Large Taxpayers list must report their VAT electronically to the Romanian tax authorities. Transaction and accounting data must be reported through Declaratiei Informative D406 (SAF-T Romania).

This move is not uncommon and follows the trend being seen across the EU with tax administrations requiring increasingly granular data in real-time in Italy, Spain and Hungary paving the way for pre-populated VAT returns.

For more information see this overview about SAF-T in Romania.

Romania SAF-T quick facts

D406 must be submitted electronically in PDF format with an XML attachment and electronic signature. The combined file size must not exceed 500MB for it to be accepted at the portal.
Submission deadlines can be periodically, annually or on demand.
There is currently a six-month grace period from 1 January 2022.
Asset information is expected to be required annually, though no date has officially been announced.

Continuous transactions control (CTC) reforms

The ANAF, Romania’s tax authority, has introduced the RO e-Invoice system. It is optional in the first phase, aiming as a first step at the relationship between companies and the state (B2G) and as a second step, the B2B transactions with high-risk products.

The ultimate goal, as is often the case when a tax administration wants visibility of more data so they can take steps to close their national VAT gap, looks set to be a system that ‘clears’ each supplier invoice prior to it being sent to a buyer.

In this respect, as of 1 July 2022, suppliers will be obliged to use the RO e‑Invoice system in B2B transactions, including high fiscal risk products. Moreover, Romania wants to expand the implementation of e‑invoicing to a broader economy as a next step.

For more information read this overview about e-invoicing in Romania.

Finally, the Ministry of Finance has announced the introduction of a mandatory e-transport system for monitoring certain goods on the national territory from 1 July 2022. The transportation of high-fiscal risk products must be declared in the e-transport system a maximum of three calendar days before the start of the transport, in advance of the movement of goods from one location to another.

The system will generate a unique code (ITU code) following the declaration. This code must accompany the goods being transported in physical or electronic format with the transport document. Competent authorities will verify the declaration and the goods on the transport routes.

Romania CTC quick facts

E-invoices must be submitted in XML format.
Use of the RO e-Factura system will be mandatory for high-fiscal risk products in B2B transactions from 1 July 2022. High-risk fiscal products include:
- Vegetables, fruits, roots and edible tubers, other edible plants
- Alcoholic beverages
- New constructions
- Mineral products (natural mineral water, sand and gravel)
- Clothing and footwear
Suppliers of high fiscal risk products must use the RO e-Factura system even if their buyers are not registered with the system.
The transportation of high-fiscal risk products must be declared in the e-transport system.

Mandate rollout dates for SAF-T and CTCs

Romania SAF-T

September 2021: Voluntary test period began with D406T allowing taxpayers to become familiar with the data extraction and mapping requirements.

January 2022: Large taxpayers included in the Romanian tax authority’s list in early-2021 must comply with new SAF-T regulations.

1 July 2022: Large taxpayers added to the list in November 2021 must comply with the new SAF-T regulations.

1 January 2023: Medium taxpayers must begin submitting SAF-T data.

1 January 2025: Small taxpayers must begin submitting SAF-T data.

Romania CTC

March 2020: Pilot program launched.

November 2021: Voluntary participation of B2G scheme.

1 April 2022: Voluntary participation of suppliers in B2B transactions including high-fiscal risk products scheme.

1 July 2022: Mandatory e-invoicing for B2B suppliers of high-fiscal risk products and mandatory issuance of e-transport document for the transport of high fiscal risk products.

2023: Mandate expansion to other B2B flows expected.

Infographic

Romania’s SAF-T Requirements

Understand more about Romania SAF-T including when to comply, penalties, requirements and how Sovos can help

Learn More

Infographic

Romania CTC Requirements

Understand more about Romania’s CTCs including when businesses need to comply and how Sovos can help.

Learn More

How can Sovos help?

Need help to ensure your business stays compliant with the evolving VAT obligations in Romania?

Learn how Sovos’ solutions for SAF-T reforms and e-invoicing VAT compliance can help companies stay compliant.

Saudi Arabia - E-Invoicing

Saudi Arabia leads the way to continuous transaction controls in the Gulf

Saudi Arabia e-invoicing from December 2021

Saudi Arabia introduced an e-invoicing regime with a phased approach in December 2021. Having only introduced VAT on 1 January 2018, the country is already leading the way in digitizing tax compliance in the Gulf Region.

According to the finalised rules published by Saudi Arabia’s tax authority, Zakat, Tax and Customs Authority (ZATCA) the go-live date of the second phase is 1 January 2023.

In addition to other requirements, Phase 2 also introduced integration with a digital ZATCA platform for continuous transaction controls (CTCs), requiring taxpayers to clear invoices ahead of transmission to buyers.

Get the information you need

Mandate quick facts

Phase 1 – Mandatory e-invoicing generation with post audit controls: Started on 4 December 2021

Applies to all resident taxable persons in Saudi Arabia.
Requires taxpayers to generate, amend and store e-invoices and electronic notes (credit and debit notes) across B2B, B2C and B2G transactions, including exports.
Businesses must generate e-invoices and their associated notes in a structured electronic format.
Electronic invoices and notes must contain all necessary information.
Any structured electronic format permitted.
B2C invoices must include a QR code.
All invoices must contain a time stamp.
Integrity of e-invoices is explicitly required.
Storage requirements same in both Phases 1 and 2. Documents can be stored on Cloud, a direct link to the online data must be available. In case the storage is outsourced, documents must be kept by a third party established within the territory of Saudi Arabia.
Suppliers must store e-invoices in a structured format regardless of how they’re exchanged with buyers.
Certain prohibited functionalities for e-invoicing solutions.

Phase 2 – CTC regime: Started on 1 January 2023, requiring taxpayers to transmit e-invoices in addition to electronic notes to tax authority ZATCA for clearance

A phased implementation approach based on taxpayers’ revenue.
Voluntary participation in Phase 2 before the taxpayer’s enforcement date arrives.
B2B invoices operate under a clearance regime, while B2C invoices must be reported on ZATCA’s platform within 24 hours of issuance.
All e-invoices must be issued in the mandatory XML format.
Tax invoices can be sent in XML or PDF/A-3 (with embedded XML) to buyers. B2C invoices must be presented in paper form. However, based on mutual agreement by the parties, B2C invoices can be shared electronically or through any other way where the buyer can read it.
A compliant e-invoicing solution must have the following features:
- Generation of a universally unique identified (UUID) plus invoice sequential number.
- Tamper-resistant invoice counter.
- Some ability to save and archive e-invoices and electronic notes.
- Generation of a cryptographic stamp for B2C invoices, a hash, and a QR code for each e-invoice and electronic note.

Important dates for e-invoicing in Saudi Arabia

Phase 1: 4 December 2021 – All resident taxable persons in the Kingdom to generate, amend and store e-invoices and electronic notes (credit and debit notes).

Phase 2: 1 January 2023 – Additional requirements for taxable persons to transmit e-invoices and electronic notes to the ZATCA. It will be a phased adoption starting with larger companies, with more gradually coming into the scope of the mandate. Companies can expect six months’ notice before the deadline by which they must comply.

Infographic

Saudi Arabia CTC Requirements

Understand more about Saudi Arabia’s continuous transaction controls including when businesses need to comply, phase one and two compliance and how Sovos can help.

Learn More

How Sovos can help

Need help to ensure your business is VAT compliant in Saudi Arabia? Sovos serves as a true one-stop-shop for managing all e-invoicing compliance obligations in Saudi Arabia and across the globe. Sovos uniquely combines local expertise with a seamless, global customer experience.

The VAT Import One Stop Shop (IOSS)

Simplify EU VAT with IOSS in one single return

The Import One Stop Shop (IOSS) is here. Simplify your EU VAT compliance into a single VAT return – grow your sales in the EU, avoid fines and penalties and enhance the customer experience by removing unexpected fees for buyers.

Since its launch, we’ve been helping e-commerce businesses of all sizes make the switch to the new scheme. Our IOSS service provides you full access to our VAT compliance software solutions and a team of indirect tax specialists. Let us handle the initial registration, monthly filing and intermediary requirements so you can continue to focus on what you do best.

Speak to a VAT and IOSS expert

What is IOSS?

Since July 2021, all goods imported into the EU, regardless of value, are subject to VAT. As of the same date, businesses selling imported goods valued at less than EUR 150 can now use IOSS to collect, declare and pay VAT to the local tax authorities in a single VAT return. IOSS simplifies your EU VAT compliance – unlock the full potential of the EU e-commerce market, maximise your cash flow, and provide an excellent customer service.

In order to obtain a registration, non- EU businesses need to appoint an intermediary. They can then obtain an IOSS VAT registration number in the Member State where the intermediary is established.

Full IOSS VAT service

Let us handle the registration process, obtain a VAT number for your business and file the monthly IOSS returns. All included, no hidden fees.

We act as your IOSS VAT Intermediary

Non-EU businesses can only register for the scheme through an intermediary. We can act as your intermediary for you.

What are the benefits of IOSS VAT?

Goods move through customs faster – IOSS calculates and accounts for VAT ahead of time instead of applying upon import
With an IOSS VAT registration number, the VAT is accounted for at the point of sale
Reduced charges for customs clearance – without an IOSS VAT registration, import VAT will be due when the goods are cleared in the EU and there are likely to be higher customs clearance costs

Quick Facts IOSS VAT

The IOSS simplification is available to use now for any qualifying transactions
The scheme requires additional record-keeping: businesses must retain more detailed records of transactions than previously
IOSS VAT declarations are monthly
Businesses can correct previous IOSS VAT returns in the next one
Non-EU businesses may need to appoint an intermediary and obtain an IOSS VAT registration in the intermediary’s country of establishment in the EU

Depending on the nature of business activity/supply chains, non-EU retailers may need to report under the Union One Stop Shop (OSS) and non-Union OSS schemes.
Businesses need at least one ‘standard’ VAT registration and possibly more due to warehouses or similar if they are to use Union OSS. No other VAT registrations is needed for IOSS or non-Union OSS.

Penalties and Fines IOSS VAT

Local tax authorities can issue penalties and fines to businesses if returns and payments are not submitted on time. In addition, repeated noncompliance can lead to a two-year exclusion from the scheme. Businesses would then need to register for VAT in all Member States where they import goods or have alternative arrangements in place to deal with the import VAT.

Businesses that want to use IOSS may require an intermediary. If an intermediary is required you can’t do it alone. Our comprehensive service handles all your registration, filing and intermediary requirements.

It’s time to get EU VAT compliance right with IOSS and Sovos

Our IOSS service gives you full access to our team of indirect tax specialists and VAT compliance software. Let us handle the initial registration, monthly filing and intermediary requirements so you can focus on what you do best.

Portugal’s VAT Regime

Portugal pushes further ahead with VAT digitization

Back in 2019, Portugal passed a mini e-invoicing reform consolidating the country’s framework around SAF-T reporting and certified billing software.

Since then, a lot has happened: non-resident companies were brought into the scope of e-invoicing requirements, deadlines were postponed due to Covid, and new regulations have been published.

Get the information you need

Quick facts

Use of certified billing software is mandatory for the creation of all types of invoices (paper or electronic); this is understood to be the taxpayer’s ERP system. Non-resident companies with a Portuguese VAT registration have also become obligated to issue invoices and other fiscally relevant documents via a certified billing software, since 2021.
A QR code should be included in all invoices issued through a certified billing software. Technical specifications about the content and placement of the code in the invoice are available on the tax authority’s website.
A unique ID number (ATCUD) must be included in all invoices and fiscally relevant documents. The ATCUD is a number with the following format ‘ATCUD:Validation Code-Sequential number’.
Public entities must receive e-invoices whilst companies must send e-invoices since 1 July 2021. E-invoices must be issued electronically in the CIUS-PT format and transmitted to the public administration through one of the available web services.
A qualified electronic signature or seal, or the use of EDI with contracted security measures is mandatory for all electronic invoices from 1 January 2024.
Billing SAF-T has monthly submission requirements and must be completed with the normal VAT return by the 5^th (until the 8th during the year of 2023 due to a grace period) day of the month following the reporting period. The Billing SAF-T may be submitted via the e-fatura portal or through web services.
Accounting SAF-T: annual submission is mandatory from 2026 via the tax authority´s portal which will enable automatic pre-filling of the VAT IES´ Annexes.

Important dates

1 July 2021: Non-resident taxpayers required to use a certified billing software to issue invoices and other fiscally relevant documents.
Issuance of B2G e-invoices:
1 January 2021: Phased rollout of mandatory issuance of e-invoices in the CIUS-PT format for large suppliers of the public administration.
1 January 2022: QR code requirement implemented for invoices and other fiscally relevant documents issued through a certified billing software.
1 January 2023: Unique ID number (ATCUD) is mandatory on all paper and electronic invoices.
1 January 2023: Non-resident taxpayers required to submit Billing SAF-T monthly.
2025 fiscal year: Mandatory annual submission of accounting SAF-T for residents and non-residents (first submission occurs in 2026 regarding the fiscal year of 2025)
1 January 2025: Mandatory B2G E-invoicing extended to include small and medium-sized businesses.
1 January 2025: Qualified electronic signature/seal or EDI mandatory for electronic invoices.

Need help to ensure your business is VAT compliant in Portugal?

Sovos provides a complete VAT, SAF-T and B2G compliance solution for Portugal helping customers meet the demands of the digital transformation of tax and public procurement through a single provider. Sovos uniquely combines local expertise with a seamless, global customer experience.

Have your customers been impacted by the 2021 EU E‑Commerce VAT Package and One Stop Shop (OSS)?

Simplifying cross-border B2C trade in the EU

On 1 July 2021, the EU introduced its e-Commerce VAT Package that replaces existing distance-selling rules and extends the Mini One Stop Shop (MOSS) into a wider-ranging One Stop Shop (OSS).

This is a significant change to VAT rules for B2C suppliers of goods and services, both as imports to the EU as well as intra-EU trading. The significantly lower pan-EU threshold of €10,000 (€0 for organizations established outside the EU) will require businesses to account for VAT on supplies in more countries.

Help your customers navigate the latest e-commerce mandate and grow your revenue in the process.

How will the EU E-Commerce VAT Package Impact Your Customers?

E-commerce businesses have new VAT obligations. For more on how we can partner to ensure your customers remain compliant and help them prepare for the digital future of tax, get in touch today.

Why should you partner with Sovos?

Our referral fees allow you to proactively address this unprecedented change for your customers and grow your revenue in the process
Protect your internal resources and have a partner to turn to when your customers ask you about how to deal with this new mandate
Educate your customers and safeguard their business operations (and in turn your customer base)
Retain your core customer relationships in the face of supplier consolidation and centralisation

What is the 2021 EU e-Commerce OSS VAT Package?

Compared to the requirement for multiple VAT registrations under longstanding distance selling rules, with the OSS simplification, businesses may be able to register in one Member State and report all EU transactions through a single OSS return filed periodically. Payments are collected and distributed from the tax authority in this Member State to others where the VAT is due.

The EU e-Commerce VAT Package introduces three schemes under OSS:

Import One Stop Shop (IOSS) – for low value goods (≤ 150€) delivered from outside the EU
Union One Stop Shop (Union OSS) – for intra-EU B2C deliveries of goods and EU to EU services
Non-Union One Stop Shop (non-Union OSS) – non-EU to EU services (previously non-Union MOSS)

On 1 July 2021: The EU e-Commerce VAT Package came into effect. Whether a business decides to use the OSS schemes or not, they still must account for VAT in all countries where they have a VAT liability. This may result in additional VAT registrations being required.

Quick Facts

If a business decides to use the OSS simplification, then they must apply it to all qualifying transactions.
Additional record-keeping is required for OSS: Businesses using any of the OSS reporting schemes must retain more detailed records of transactions than previously. This additional data may be requested by tax authorities and used in audits to check VAT has been applied appropriately.
Declarations for Union and non-Union OSS are quarterly. The submission deadline will change to the last day of the month following the return period. Declarations under IOSS are monthly.
Businesses can correct previous OSS returns in the next OSS return. This is instead of correcting the original submitted OSS return.
Businesses established in the EU may only register for OSS in the Member State of establishment.

Non-EU businesses may need to appoint an intermediary and obtain an IOSS VAT registration in the intermediary’s country of establishment in the EU.
Non-Union OSS registrations can be in any chosen Member State. If already registered under MOSS, existing registration will continue.
Depending on the nature of business activity/supply chains, non-EU retailers may need to report under all three schemes. They will also need at least one ‘standard’ VAT registration and possibly more due to warehouses or similar.
EU businesses may have to report under OSS and IOSS as well as local registrations.

How Sovos helps companies navigate the new EU e-Commerce VAT OSS Package requirements – and how we can work together to support your customers

Implementing the changes required to comply with the EU e-Commerce VAT Package into an ERP system could take significant time and resources. Sovos can help ease this tax burden and help your customers prepare for, understand and implement the right solution for their business.

Our large team of advisors can help your customers navigate the complexities of modern VAT compliance.

Contact us to discuss how we can work together to ensure your customers remain compliant and help them prepare for the digital future of tax.

South Korea's Long Standing e-Tax Invoice System

South Korea E-Invoices

South Korea introduced its Electronic Tax Invoice System i.e. e-Tax in 2010. Since 2011, this has become a mandatory e-invoicing requirement alongside the obligation to report e-tax invoices shortly after issuance. This requirement means South Korea has a continuous transaction controls (CTCs) reporting obligation. The scope of the mandate has been expanded to cover more taxpayers, however the initial workflows and requirements of the mandate have remained relatively stable.

E-invoicing in South Korea has been mandatory for all corporations since 2011 and for individual taxable persons when exceeding a certain turnover threshold.

Get the information you need

Mandate quick facts

Mandatory e-invoicing with CTC reporting model: An issued e-tax invoice must be transmitted to the National Tax Service (NTS) within one day of the invoice being issued
Invoice data is reported to the NTS in XML format
Invoices and amended invoices (credit and debit notes) are in scope
E-invoicing in South Korea applies to domestic transactions only. Cross border transactions are out of scope

Mandate rollout dates

January 2011: The electronic issuance of VAT invoices and next day reporting became mandatory for all Korean corporate taxpayers
January 2012: : In addition to the first category, sole proprietors with a supply value of 1 billion KRW and above must issue e-tax invoices
July 2014: The threshold changed from 1 billion KRW to 0.3 billion KRW and above
July 2019: Introduction of the tax-free portion of the income to be included when calculating the threshold of 0.3 billion KRW
July 2022: The threshold was updated from 0.3 billion KRW to 0.2 billon KRW and above
July 2023: The threshold will be updated from 0.2 billion KRW to 0.1 billon KRW and above

Penalties

Penalties vary between 0.3-1% of the supply price based on the failure type e.g. non-issuance, issuance form, delayed issuance, non-transmission, late transmission.

Infographic

South Korea CTC Requirements

Understand more about South Korea’s continuous transaction controls including when businesses need to comply and how Sovos can help.

Learn More

Good to Know

Does South Korea charge VAT?

Yes, VAT is South Korea’s consumption tax and is charged on virtually everything sold throughout the country.

Is e-invoicing mandatory in South Korea?

Yes, e-invoicing in South Korea is mandatory for all corporations and for certain individuals with supplies over a certain amount.

How does VAT work in South Korea?

VAT is charged on all supplies of goods and services. There are some exemptions and also zero-rated supplies of goods and services.

Which countries in Asia require e-invoicing?

Here’s further information about some of the countries within Asia that require e-invoicing.

How Sovos can help

As countries around the globe digitize their tax systems to close VAT gaps, our experts continually monitor, interpret and codify these changes into our software, reducing the compliance burden on your tax and IT teams.

Discover how the Sovos solution is tailored to manage all e-invoicing and related VAT obligations in South Korea.

Making Tax Digital: All You Need to Know

What is Making Tax Digital?

The UK government introduced Making Tax Digital (MTD) with the aim of making filing VAT returns easier and more efficient for businesses. The regulation requires businesses to keep digital records and submit VAT returns via compatible software.

More than 1.8 million businesses are already benefitting from the service, and more than 19 million returns have been successfully submitted through Making Tax Digital compatible software so far.

Understanding MTD

Making Tax Digital is part of the UK government’s plans to reduce errors and make managing tax affairs easier with the use of digital tools.

Businesses must digitally file VAT returns using one of the HMRC approved compatible software solutions that connect to HMRC’s API. Using software to keep digital records of specified VAT related content is compulsory.

Making Tax Digital (MTD): Quick facts

MTD requires every VAT registered business to record and submit VAT returns electronically using ‘functional compatible software’.
Companies must use software to keep digital records of specified VAT-related documents.
Stored records must include designatory data and summary VAT data for the period.
Use of multiple pieces of software is allowed.
The format of the VAT return is a 9-box summary, filed via the HMRC’s JSON API platform, which must be digitally linked between the customer’s source data and the submitted digital return. Businesses receive and send information to HMRC via API.
Each business must set up a new digital tax account and should follow a new authentication process.
Submission of digital records can be in a range of digital formats, including XML, CSV, and Excel, provided they are API enabled.

Making Tax Digital (MTD): Roll out dates

1 April 2019: MTD for VAT introduced to UK VAT registered businesses exceeding annual gross sales of £85,000.

1 October 2019: MTD applies for businesses eligible for deferral.

1 April 2021: The ‘soft landing’ for digital links ended. Starting with that tax period, all MTD users must meet digital link requirements. HMRC may consider deferrals for taxpayers with complex legacy systems.

1 April 2022: Mandate expanded to include all businesses registered for UK VAT, regardless of size.

1 November 2022: Businesses filing VAT returns can no longer submit via an existing online VAT account unless HMRC has agreed to an exemption from MTD. Businesses that file annual VAT returns will still be able to use their VAT online account until 15 May 2023.

January 2023: Any VAT registered businesses that fail to sign up for MTD and file returns through MTD-compatible software will incur a default surcharge or late submission penalty and interest.

Penalties for not complying with Making Tax Digital (MTD)

A default surcharge of up to 15% for any late payments of VAT due.
Up to 100% of any VAT understated or over-claimed if a VAT return contains a careless or deliberate inaccuracy.
Up to 30% of an understated assessmentof VAT due if HMRC isn’t informed within 30 days that it’s incorrect.
£400 for submitting a paper VAT return without an exemption.

Making Tax Digital for VAT

Making Tax Digital applies to all VAT registered businesses in the UK. Electronic submission of VAT returns, digital record keeping and digital links are all requirements of the regulation.

Digital link requirement

One of the MTD requirements is ‘digital links’ – the electronic exchange of data between software programs, products or applications without manual intervention.

A digital link is required whenever a business is using multiple pieces of software to store and transmit its VAT records and returns in-line with MTD requirements.

A digital link can be:

XML, CSV import and export, and download and upload of files.
Automated data transfer.
API transfer.

Transfer of data and subsequent import of data into software by means of email or tangible digital media (i.e. flash drive).

Making Tax Digital for Corporation Tax

MTD doesn’t currently apply for corporation tax but HMRC published results of its consultation and there are plans for a pilot scheme. A potential mandate is likely in 2026. Bookmark this live blog about updates for MTD or follow us on LinkedIn to stay up to date.

How to set up Making Tax Digital with Sovos

Sovos can help you with MTD in two ways:

You can use Sovos Advanced Periodic Reporting software to streamline your compliance workload with one solution, or
You can use Sovos’ Compliance Services Portal to access expert VAT compliance services and get full visibility of how each obligation is being handled, every step of the way.

FAQ

Can I use Excel for Making Tax Digital?

Excel is an approved digital format to submit digital records as part of Making Tax Digital, as long as the file is API enabled or the spreadsheet is digital. Using Excel can prove inefficient and error prone in comparison to other digital record software options.

How do I setup MTD?

There are a few steps involved in setting up Making Tax Digital for your business:

Choose MTD-compatible softwarelike Sovos’ Advanced Periodic Reporting technology.
Check the permissions in the software– filing VAT returns is easy once a business has allowed it to work with Making Tax Digital.
Keep digital records for current and future VAT returns– a business can find out what records need keeping here.
Sign up for Making Tax Digital and file future VAT returns using MTD-compatible software – Sovos’ Advanced Periodic Reporting solution streamlines periodic reporting obligations including MTD and other global VAT and SAF-T reporting requirements.

Who needs to register for Making Tax Digital?

All UK VAT-registered businesses need to register for Making Tax Digital. New businesses will be automatically signed up for MTD when registering for VAT through HMRC’s new VAT Registration Service (VRS).

What is the threshold for Making Tax Digital?

Since April 2022 Making Tax Digital is mandatory for all VAT registered businesses, regardless of annual turnover.

Do sole traders have to make tax digital?

If a sole trader is a VAT registered business they will have to comply with the Making Tax Digital requirements. In the UK, businesses with an annual turnover of less than £85,000 can opt to register their business for VAT but it is not compulsory.

Need help with Making Tax Digital?

Speak to our experts

SII Spain: An Overview

SII Spain: Suministro Inmediato de Información

SII Spain is an electronic VAT system that affects thousands of large companies across the country. It can seem complicated, but it doesn’t have to be.

The mandate is demanding, with the impacted groups having to stay on top of the four-day reporting period. If your business meets the criteria of SII Spain, you will likely be feeling the pressure of having to comply.

Sovos is here to help, breaking down Spain’s SII system into:

How companies can comply (and what to expect if they don’t)
Key details about the mandate and how it’s developed over time
How Sovos can ease the burden for you at every stage

SII Spain is only one of the country’s tax compliance obligations. Our Spain VAT Compliance overview can help you stay on top of other mandates and obligations you may be subject to.

Get in touch

Who SII affects
Where is SII applicable in Spain?
Quick facts
What rollout dates
Penalties: What happens if you don’t comply
Sovos Helps Companies Stay Compliant with Spain’s SII
Additional obligations for VAT compliance in Spain
FAQ

Who SII affects

The mandate affects Spanish companies above an annual turnover threshold of over €6 million. It’s also applicable to VAT business groups, companies that participate in the monthly tax refund system known as REDEME and other businesses that voluntarily sign up.

Where is SII applicable in Spain?

Spain’s compliance obligations are further complicated by the country being divided into regions. Depending on where your business is based, you may well be subject to a specific combination of tax mandates.

The distinct areas where SII is applicable include:

Mainland Spain
Canary Islands
Bizkaia
Gipuzkoa
Alava

Quick facts about SII Spain

The Spanish mandate applies to companies with an annual turnover above €6 million, companies that are part of VAT groups, and companies using the REDEME system.
The following records must be sent to the tax authority:
- Registered book of issued invoices
- Registered book of received invoices
- Registered book of investment goods
- Registered book of certain intra-community operations
The transmission of the information must be via web services available to exchange XML messages.
Some formal obligations are reduced as taxpayers will no longer be required to file the information returns form 347 (third-party information), form 340 (transactions in register books) and form 390 (VAT annual summary).
In 2020 the Spanish tax administration introduced a service to pre-populate the periodic VAT return (Modelo 303) using the information taxpayers supplied via the SII.

Spain: Rollout dates

2 January 2017: The immediate supply of information on a voluntary basis for taxpayers in Spain begins.

1 July 2017: The mandatory phase of the immediate supply of information for taxpayers under the scope of the mandate begins.

1 January 2018: The period to supply information was reduced from 8 days to 4 days. The mandate also extended to other Spanish territories (Basque Provinces and Canary Islands).

1 January 2020: Introduction of a ledger to record operations related to the sale of goods in consignment.

4 January 2021: Introduction of new validations and fields that record the sales of goods in consignment

Penalties: What happens if you don’t comply

Omissions or inaccuracies in the information reporting obligation have a penalty of up to 1% of the total amount missed, with a maximum of €6,000.
Late reporting of real-time electronic VAT ledgers will trigger a penalty of 0.5% of the total amount reported, with a minimum of €300 and a maximum of €6,000 per quarter.
Errors or omissions in the Registered book of certain intra-community transactions and Registered book of Investment goods have a fixed penalty of €150.

Sovos Helps Companies Stay Compliant with Spain’s SII

Sovos serves as a true one-stop shop for managing all VAT compliance obligations in Spain and across the globe.

Sovos supports the Suministro Inmediato de Información (SII) platform, ensuring our customers remain compliant with the legal and technical framework developed by the Spanish tax authority (AEAT).

Sovos experts continually monitor, interpret, and codify these changes into our software, reducing the compliance burden on your tax and IT teams.

Learn more about our solution

Additional obligations for VAT compliance in Spain

While SII Spain affects many large companies nationwide, there are numerous other compliance obligations taxpayers must be aware of.

Spain B2G E-invoicing: E-invoicing has been mandatory in Spain for all transactions between public administrations and their suppliers since 2015.

Read our dedicated Spain e-invoicing overview for more information on B2G electronic invoicing.

Spain B2B E-invoicing: Businesses are under varying obligations where e-invoicing is concerned, largely depending on the nature of transactions. Mandatory B2B e-invoicing is anticipated to be implemented from 2024.

Read our dedicated Spain e-invoicing overview for more information on B2B electronic invoicing.

Bizkaia Batuz: Batuz is a tax control strategy governed by the government of Bizkaia which applies to all companies and taxpayers that are subject to the province’s regulations.

Find out more about Bizkaia’s Batuz tax system.

TicketBAI: TicketBAI is an e-invoicing mandate from the numerous tax authorities in the Basque Country which covers Álava, Biscay, and Gipiuzkoa. It outlines obligations for both individuals and companies to use software to report invoice data to the Tax Administration in real-time.

Understand TicketBAI with our dedicated blog.

FAQ for SII in Spain

What is SII in Spain?

The Suministro Inmediato de Información (SII) is a platform to submit invoice data to the tax authority in Spain. Taxable persons who are in scope must report invoice data within four business days following the date of issue.

In 2020 the tax administration announced a new version of the SII, introducing a ledger to record operations related to the sale of goods in consignment. This came into effect on 1 January 2021.

When did Spain introduce SII?

The Suministro Inmediato de Información (SII) was introduced on 2 January 2017 on a voluntary basis, extending to a mandatory basis on 1 July 2017. Since then, there have been changes and additional requirements

What regions in Spain use SII?

SII applies to multiple regions in Spain, including Mainland Spain, the Canary Islands, Álava, Biskaia, and Gipiuzkoa.

This was not the case when the legislation originally came into effect, as it excluded the likes of the Canary Islands, Ceuta, Melilla, Basque Country and Navarra.

What is SII reporting in Spain?

The Immediate Supply of Information (Suministro Inmediato de información) SII is a system for keeping the Value Added Tax record books in the local Tax Authority’s electronic headquarters by supplying VAT-relevant information on a near-real-time basis.

What submissions are required for SII?

Issued Invoices Ledger
Received Invoices Ledger
Investment goods ledger
Certain Intra-Community operations ledger

Sovos Helps Companies Stay Compliant with Spain’s SII

Sovos serves as a true one-stop-shop for managing all VAT compliance obligations in Spain and across the globe.

Sovos supports the Suministro Inmediato de Información (SII) platform, ensuring our customers remain compliant with the legal and technical framework developed by the Spanish tax authority (AEAT).

Sovos experts continually monitor, interpret, and codify these changes into our software, reducing the compliance burden on your tax and IT teams.

Click to learn more about our solution

Looking for more VAT compliance resources?

Need immediate help with tax compliance in Spain?

Talk to Sales

What is Turkey's E‑Transformation?

While many governments and tax authorities are now on an e-Transformation journey, this trend began in Latin America in the early 2000s. Turkey followed suit a decade later when it began the digitization of its tax system.

Turkey is further along in its e-Transformation journey than most countries – including EU Member States, which are working towards digitization in their own way with the overarching VAT in the Digital Age initiative.

From e-invoicing to electronic self-employment receipts, Turkey now has a fully-fledged, established digital tax system with many moving parts. To understand Turkey’s e-Transformation, bookmark this page then read on.

At a glance: e-Transformation Turkey
E-Transformation in Turkey
E-Transformation practices and applications
Who is affected by e-Transformation?
What are the benefits of e-Transformation?
Tax compliance and e-Transformation
How Sovos can help with your e-Transformation journey
E-Transformation FAQ
Related resources to e-Transformation

At a glance: E-Transformation Turkey

E-Fatura Turkey

CTC Type
E-invoice clearance with both parties registered on the portal

Network
Centralised – e-Fatura Portal delivers the e-invoices to Buyers for B2B transactions

Format
UBL-TR format

eSignature Requirement
Required – fiscal stamp or qualified electronic signature

Archiving requirement
10 years

E-arşiv Fatura Turkey

CTC Type
E-invoice reporting (daily basis)

Network
Decentralised – e-Fatura Portal does not deliver e-arşiv invoices; it’s the taxpayers’ responsibility

Format
UBL-TR format or in a free format such as PDF and must also be available in paper form

eSignature Requirement
Required – fiscal stamp or qualified electronic signature

E-Transformation in Turkey

Turkey stepped up its tax system through digitization in 2012 to help important information be gathered and transmitted with ease and accuracy. It’s further ahead than many other countries, with a variety of electronic systems and documents mandated for many taxpayers – all starting with its e-Ledger obligation.

Turkey joined the eEurope+ initiative and moved fast to ensure it was keeping up with tax digitization efforts, relieving its entire economic ecosystem where information is concerned. The aims of such changes are to reduce VAT fraud, increase governmental access to and control of data, standardise financial and accounting processes and reduce errors.

Now effectively utilising electronic versions of invoices, ledgers, delivery notes, self-employed receipts and more, there are a lot of challenges for taxpayers to overcome to remain compliant amidst Turkey’s e-Transformation.

Learn more

E-Transformation practices and applications

Turkey’s ambition to electronically transform its tax ecosystem required the development and implementation of many products and services. This presented taxpayers with new requirements and, subsequently, new challenges.

Here are the products and services in Turkey’s e-Transformation system:

e-Fatura

e-Fatura is Turkey’s e-invoicing initiative. Mandated for companies with turnovers of over TRY 5 million, this obligation came into effect on 1 April 2014. There are also sector-based parameters for the nation’s e-invoicing mandate, ignoring the turnover threshold, qualifying the following for an electronic invoice obligation:

Companies licensed by the Turkish Energy Market Regulatory Authority
Middlemen or merchants trading fruits or vegetables
Online service providers facilitating online trade
Importers and dealers

Turkey’s e-invoicing initiative is a clearance model and two-way application, with issued invoices needing to be in the UBL-TR format and archived for 10 years. Sovos’ e-invoice solution enables compliance with e-Fatura requirements.

e-Arşiv Fatura

e-Arşiv Fatura is Turkey’s e-arşiv invoice initiative. Taxpayers registered in the e-Fatura system must also issue e-Arşiv invoices, either in the UBL-TR format or in a free format such as PDF.

Real-time clearance is not conducted for the issuance of these invoices, though an e-Arşiv report must be submitted electronically to the tax authority by the end of the following day. e-Arşiv invoices are always created electronically but must be available in paper form unless the buyer agrees to receive the document electronically.

The Sovos e-Arşiv Invoice solution makes e-archive invoice compliance simple.

e-İrsaliye

e-İrsaliye is Turkey’s e-WayBill initiative. The use of e-İrsaliye documents became obligatory for taxpayers that surpass the TRY 10 million revenue threshold on 1 July 2023, though those outside of the scope can voluntarily switch to electronic WayBill documents.

There are two types of paper waybills, namely shipment and transportation. e-İrsaliye largely replaces the shipment waybill.

Information required in this type of e-document includes:

Supplier information
Issue date and document number
Buyer information
Type and quantity of the transported goods
Shipment date and time

Legally, there is no difference between paper waybills and eWayBills, though the electronic version requires both parties to be registered in the national system.

e-Defter

e-Defter is Turkey’s e-Ledger initiative. The Turkish tax authorities made the e-Ledger application mandatory for e-invoice users and taxpayers, subject to independent audit, in 2015.

These e-documents must be prepared in XBRL-GL format and include specific information in standard XML format – all signed with a financial seal. In addition to producing e-ledgers, taxpayers are required to create a ledger summary which is to be sent monthly to the TRA and archived for 10 years.

Electronic ledgers reduce the time it takes to collect data, save costs associated with the notarization process and ensure compliance with tax processes.

e-Mutabakat

e-Mutabakat is Turkey’s e-Reconciliation initiative. Reconciliation is the communication between accounts to mutually agree on the debit and credit between companies that are part of an agreement.

Turkey’s tax authority has ruled that companies are obliged to make reconciliations at particular times. The last day of the year is typically the day when the account between two parties will be closed unless an agreement or legal requirement states otherwise.

The BA-BS web application developed by the TRA for e-Reconciliation enables taxpayers to compare current agreements and unbalanced agreements before electronic submission of the BA-BA forms.

e-Müstahsil Makbuzu

e-Müstahsil Makbuzu is Turkey’s e-Producer Receipt initiative. This commercial e-document is issued by farmers or wholesalers to keep a record of the products they buy from farmers that don’t bookkeep.

Taxpayers that are obliged to issue producer receipts have had to issue electronic versions of the document, known as e-Müstahsil Makbuzu, since 1 July 2020. However, fruit and vegetable brokers or merchants have been required to issue e-Producer Receipts since 1 January 2020.

Those obliged to utilise e-Producer Receipts may be outside of the scope of e-Fatura, e-Arşiv Fatura and e-Defter requirements.

e-Serbest Meslek

e-Serbest Meslek is Turkey’s e-Self-Employed Receipt (e-SMM) initiative. This obligation came into effect on 1 February 2020 and applies to all self-employed individuals, including:

Architects
Engineers
Financial advisors
Lawyers
Screenwriters, writers, composers and painters
Self-employed doctors, dentists and veterinarians

e-SMM receipts can be created, submitted and reported electronically and carry the same legal weight as paper Self-Employment Receipts. They must be archived for 10 years.

While all the above are prominent e-documents, there are even more electronic documents in Turkey that you should know about. To learn more, read our e-documents overview.

Who is affected by e-Transformation?

E-Transformation includes many documents, each subject to specific thresholds and criteria based on their type. Additionally, certain documents are mandatory for particular sectors without any threshold criteria. E-invoicing is now mandatory for the majority of taxpayers, but it is important to understand which documents are required to be submitted to the tax authorities.

The TRA continues to announce new taxpayer groups in scope of the different document types, so it’s important that businesses stay up to date with the latest information to ensure they remain compliant.

What are the benefits of e-Transformation?

Turkey’s tax transformation aimed to deliver benefits to both the government and taxpayers.

The e-Transformation initiative aims to produce the following benefits:

Real-time collection of financial data
Reduce VAT fraud and the circulation of fake invoices
Increased standardisation to automate accounting processes
Improved efficiency and reduction of manual errors through data auto-population

Tax compliance and e-Transformation

Turkey’s e-Transformation has impacted tax compliance, successfully implementing real-time transmission of important financial data.

With data automatically being populated in documents, it reduces the possibility of error via manual input and fraudulent invoices being submitted. The reduction of the VAT gap has been a driving force for many countries, including Turkey.

Eliminating paper, cartridge, shipping and archiving costs associated with paper invoices is also an advantage to businesses and government.

With over 16 document regulations, Turkey’s e-transformation system requirements are extensive and complex. Understanding which regulations apply and keeping up with the latest tax compliance guidelines is key.

How Sovos can help with your e-Transformation journey

Sovos provided the first global e-Transformation solution suite, helping businesses of all shapes and sizes to meet the demands of Turkish tax mandates. Our platform meets all the requirements, standards and formats defined by the Turkish Revenue Authority.

Organisations choose Sovos as their global compliance partner, partly due to the convenience of having a single vendor to aid compliance wherever and however they do business.

See our solutions

E-Transformation FAQ

Is e-defter mandatory if I am using e-fatura voluntarily?

E-defter is not mandatory for voluntary e-fatura use.

What is a special integrator?

A special integrator is an intermediary service provider authorised by the Turkish Revenue Administration. Special integrators have the authority to create electronic records on behalf of taxpayers.

Related resources to e‑Transformation

Navigate Turkey’s evolving tax landscape

As an early adopter of the ‘clearance model’, Turkey positions itself as one of the leading countries in the world when it comes to tax digitisation.

Learn more

Tax compliance software for Turkey

Sovos e-Invoice provides full compliance with Turkey’s e-invoicing mandate.

Learn more

Turkey’s e-transformation solutions and benefits

Over the years, the scope of e-transformation has expanded to include different e-documents. This infographic brings you clarity.

Learn more

Poland’s VAT Requirements

Poland’s CTC and SAF-T framework

In an effort to modernise its tax systems and close the VAT gap, Poland’s tax authority, the Krajowa Administracja Skarbowa (KAS), continues to advance its implementation of VAT reform with changes to SAF-T and the introduction of continuous transaction controls (CTCs).

Get the information you need

Poland’s SAF-T evolution

Poland introduced its version of the Standard Audit File for Tax (SAF-T) known as Jednolity Plik Kontrolny (JPK) in 2016. This incorporated multiple regulated JPK structures, of which two, JPK_VAT and JPK_FA, were relevant for VAT.

The requirement for monthly submissions of JPK_VAT was extended to all taxpayers on 1 January 2018. JPK_VAT was combined with the VAT return during 2020 and the consolidated JPK_VAT with the declaration is submitted per the frequency of the VAT Return (monthly or quarterly).

JPK_VAT with the declaration has two variants:

JPK_V7M for taxpayers settling VAT monthly
JPK_V7K for taxpayers who settle VAT quarterly

The remaining JPK structures are submitted upon request of the tax authority in event of an audit.

SAF-T quick facts

There are eight Polish JPK structures that taxpayers should be prepared for. Most are required on demand, but the JPK_V7M/K must be submitted periodically (monthly or quarterly).

JPK_V7M/K declaration for records of VAT purchases and sales combined
JPK_FA for VAT and VAT invoices
JPK_WB for bank statements
JPK_PKPIR for revenue and expense ledger

JPK_EWP for revenue account
JPK_KR for accounting books
JPK_MAG for warehouses
JPK_FA_RR for flat rate VAT invoices

Poland’s CTC reforms

Aiming to combat fraud and improve tax collection capabilities, Poland’s first Continuous Transaction Controls (CTC) legislation, the Krajowy System e-Faktur (KSeF), was published in Poland in early 2021.

Adoption of the proposed CTC reform occurred on 18 November 2021, following consultation with industry representatives. The implementation process is ongoing, with the voluntary phase having begun in January 2022 and the mandate due to go-live on 1 July 2024.

CTC quick facts

Participants who wish to get ahead of the mandate can now opt to use the Polish electronic invoice in structured XML format the FA-VAT, to submit supplier invoices to the KSeF (Krajowy System e-Faktur) electronically.

Other considerations for businesses include:

During the voluntary phase, buyer acceptance of e-invoices is necessary to receive invoices via KSeF (otherwise supplier will still need to issue invoices in the agreed form/format, such as PDF, paper or via EDI)
Refund period reduced from 60 to 40 days
Incentives provided to businesses to issue invoices through the KSeF portal during voluntary phase

Outsourcing using third-party service provider will be permitted
All invoices will be archived in KSeF for ten years
A qualified electronic signature or seal (QES), trusted profile or token will be required to authenticate access to the portal

Mandate rollout dates for JPK and CTCs in Poland

Poland SAF-T

1 July 2016: SAF-T introduced in Poland in the form of JPK files
1 January 2018: Poland mandated JPK_VAT for all taxable persons
1 July 2018: Taxpayers must be able to produce accounting documents in JPK structures
1 October 2020: JPK_VAT with declaration consolidates the VAT Return and JPK_V7M/K
1 July 2021: Amendments to the mandatory JPK_V7M/K adopted
1 January 2022: Amendments to the JPK_V7M/K structure including changes to better align it with the EU VAT e-Commerce package
1 January 2025: Reporting of JPK EWP, JPW PKPIR, and JPK_KR becomes a periodic reporting obligation

Poland CTC

29 October 2021: Legislation for a Continuous Transaction Control (CTC) e-invoicing system adopted; draft specifications released and test system made available
1 January 2022: Voluntary phase begins for the CTC system. There is no obligation to use the e-invoicing system in B2B transactions though there are several benefits if businesses chose to do so, including quicker tax refunds and exemptions from submitting the report of invoices, JPK-FA
10 June 2022: The Council of the European Union published the Council Implementing Decision authorizing the Republic of Poland to apply a special measure derogating from Articles 218 and 232 of Directive 2006/112/EC, based on the European Commission proposal published on 30 March 2022. The decision will be granted from 1 January 2024 until 31 December 2026, after being published in the Official Journal of the European Union.
1 July 2024: The CTC system will become mandatory
1 January 2025: The mandatory e-invoicing expands to the VAT-exempted taxpayers
1 January 2025: The end of the grace period for the application of the penalties

infographic

Poland's SAF-T Requirements

Understand more about Poland SAF-T including when to comply, penalties, requirements and how Sovos can help.

Learn More

infographic

Poland CTC Requirements

Understand more about Poland’s continuous transaction controls including when businesses need to comply and how Sovos can help.

Learn More

Penalties

The new SAF-T structure, like the JPK_VAT and VAT returns, must be submitted monthly, or quarterly. Failure to submit accurately and on time may result in penalties. The Polish tax authority will react quickly to inconsistencies detected in SAF-T files and use data analysis algorithms to identify fraudulent transactions.

Need help to ensure your business stays compliant with the evolving reporting and emerging SAF-T and CTC obligations in Poland?

Keeping up with VAT compliance obligations has become more difficult as Poland continues to take steps to reduce its VAT gap and modernise the system.

Our experts continually monitor, interpret and codify complex legal and technical changes into our software solutions, keeping you up-to-date and reducing the compliance burden on your tax and IT teams.

Learn how Sovos’ solution for JPK_V7M/K, CTC reforms and other VAT compliance changes can help companies stay compliant in Poland and around the world.

VAT in Norway: All you need to know about Norway’s SAF-T Requirements

Norway’s SAF-T reporting requirements are evolving as tax continues to digitize

Reform
Designed to reduce the compliance burden and administrative costs associated with audits, while giving tax authorities greater visibility of company’s tax and financial data, SAF-T has continued to gain popularity across a growing number of European countries.

Initially introduced in 2017 on a voluntary basis, Norway’s tax authority made SAF-T reporting compulsory in January 2020.

At present, the Norwegian SAF-T must only be submitted on demand in connection with an audit. However, it is expected to be extended to areas such as corporation tax.

On 1 January 2022, the tax authority introduced digital submission of its VAT return, which was also enhanced to capture other data that’s already required whenever a SAF-T submission is needed. However, as SAF-T doesn’t yet need to be submitted regularly in Norway, the completion of these new summary boxes creates a challenge for companies who are unfamiliar with SAF-T.

Have questions? Get in touch with a Sovos expert on Norway SAF-T.

Norway SAF-T Quick facts

Norway’s SAF-T requirements apply to businesses with bookkeeping obligations who use electronic accounting systems including registered foreign bodies.
Businesses with a turnover of less than NOK 5 million who aren’t subjected to mandatory bookkeeping are exempt unless they have electronic bookkeeping information available.
Enterprises with less than 600 vouchers annually that hold accounts in spreadsheets or a text editor program are exempt.

Norwegian SAF-T is submitted on request and doesn’t currently have periodic submission requirements.
SAF-T is a standardised XML format containing exported accounting information.
Norwegian SAF-T files will be submitted primarily by upload via the Altinn internet portal.
Testing is available and recommended by the tax authority.

Mandate rollout dates

1 October 2016: The first version of the SAF-T Financial was published on the Norwegian tax authority website.
9 June 2017: The administrative body on Norwegian SAF-T standards met for the first time to manage standards to suit both public and private sectors. The body meets at least once a year.
1 January 2017: Voluntary adoption of SAF-T began.
1 January 2020: Norway introduced mandatory SAF-T reporting on demand.
1 January 2022: Norway updated its VAT Return to allow for more detailed reporting and flexibility, as the new return structure removes numbered boxes and instead requires users to map their transactions to Norway’s existing tax codes that are currently utilised in the SAF-T mandate. The submission frequency of the VAT return remains the same, but users can now directly submit returns from their ERP system to allow for a more efficient process; where this is not possible, users may still upload XMLs or manually populate data via a portal.

Infographic

Norway’s SAF-T Requirements

Understand more about Norway SAF-T including when to comply, submission deadlines and filing requirements and how Sovos can help.

Learn More

How can Sovos help?

It’s a challenge to extract data from the ERP, map to the correct SAF-T format and ensure it meets tax authority requirements without triggering the need for further scrutiny. Sovos software takes care of this by extracting the data, performing a full analysis and generating the submission-ready SAF-T file.

Our experts continually monitor, interpret and codify regulatory changes into our software, reducing the compliance burden on your tax and IT teams.

E-Invoicing India: All You Need to Know

India E-Invoicing Requirements

Under the new Goods and Services Tax (GST) framework, the Indian e-invoicing system falls under the category of continuous transaction controls (CTCs). The invoice data reporting obligation to the governmental portal is a mandatory step before an invoice can be issued.

The legal validity of the invoice is conditional on the Invoice Registration Portal (IRP) digitally signing the invoice and providing an Invoice Registration Number (IRN). If the IRN is not included in an invoice, the invoice will not be legally valid.

The scope covers both domestic and cross-border transactions. The IRP process is mandatory for B2B, B2G and export transactions. So, taxpayers in scope must issue their invoices (as well as other documents that need an IRN e.g. associated eWaybills) according to the new system for all B2B, B2G or export transactions. India has made multiple changes to the initial regulation and future changes are inevitable.

Have questions? Get in touch with a Sovos India e-invoicing expert.

India’s e-invoicing mandate

Invoice data should be transmitted to the IRP in JSON format.
The IRN obtained from the IRP is a validity requirement for invoices.
Invoices can be exchanged in JSON or PDF format as well as in paper form between the supplier and buyer.
Archiving is mandated (storage period of eight years).

Mandate rollout dates

1 January 2020: Voluntary period for businesses with a turnover of Rs. 500 Crore or more.
1 February 2020: Voluntary period for businesses with a turnover of Rs. 100 Crore or more.
1 October 2020: Beginning of the mandatory period for businesses with a turnover of Rs. 500 Crore or more (six months later than previously intended). For the first 30 days, there was a grace period during which invoices could be reported after they had been issued.
1 January 2021: Beginning of the mandatory period for businesses with a turnover of Rs. 100 Crore or more.
1 April 2021: Threshold for mandatory e-invoicing lowered to taxpayers with turnover between Rs. 100 Crore to Rs. 50 Crore.
1 April 2022: Threshold lowered from Rs. 50 Crore to Rs. 20 Crore. Taxpayers above Rs. 20 Crore must implement e-invoicing.
1 October 2022: Threshold lowered to taxpayers with an annual threshold of Rs. 10 Crore.
1 August 2023: Threshold lowered to taxpayers with an annual threshold of Rs. 5 Crore.

Penalties

If an invoice is not registered on the IRP, it will be considered unissued and will result in penalties of at least 10,000 Rupees for each instance of noncompliance. Penalties under various sections of GST will be levied with interest.

Sovos Helps Companies Stay Compliant with India E-invoicing

By February 2021 the initial specifications published by the Indian tax authority in December 2019 had already been revised three times. Future changes are inevitable.

Our experts continually monitor, interpret, and codify these changes into our software, reducing the compliance burden on your tax and IT teams.

Find out how Sovos can help you to meet your clearance e-invoicing obligations in India.

E-Invoicing France: All You Need to Know

E-invoicing France

France will implement mandatory B2B e-invoicing, as well as an e-reporting obligation. This mandate impacts all companies operating in France.

This new e-invoicing mandate is complex and introduces the continuous transaction controls (CTC) model.

Note: The Finance Law for 2024 has been officially adopted and published in the Official Gazette on 30 December 2023. Our blog, France: B2B E-Invoicing Mandate Postponed, is promptly updated whenever there are changes to the rollout of the French mandate.

France’s e-invoicing mandate, combined with the e-reporting obligation, provides the tax authorities with access to transaction data. This is to increase efficiency, cut costs and fight fraud.

Whether you are a buyer or supplier, the mandate’s effect on businesses and their operational processes, financial systems and people is extensive.

The France e-invoicing guide will explain:

How e-invoicing in France works
Who needs to comply and when
Key information about penalties and non-compliance

Get the information you need

Quick facts: E-invoicing in France for B2B and e-reporting
E-invoicing and e-reporting in France: Rollout dates
Penalties: What happens if you don’t comply
Register for e-invoicing in France with Sovos
FAQ for e-invoicing and e-reporting in France
More resources for E-invoicing and tax compliance
Need immediate help with tax compliance in France?

Quick facts: E-invoicing in France for B2B and e-reporting

The e-invoice mandate is a model based on registered certified service providers connecting taxpayers to a centralised platform (Chorus Pro). There is also an option for taxpayers to connect directly to Chorus Pro.
When directly transmitting to the centralised platform, the structure of the e-invoices can be UBL, CII or Factur-X (a mixed format). E-invoices exchanged between two registered service providers can use any other structured format. Also, during a transitional period (up until December 2027), taxpayers may submit their invoices in an unstructured PDF format.
E-invoices must contain all existing tax mandatory fields as well as those required by commercial laws, including line-item details (and for line-item data from January 2026). The invoice must mention the operation type (goods, services, mixed) and the VAT payment option. The inclusion of additional mandatory fields in e-invoices is a requirement. Accepted formats include structured and hybrid (image + structured data).
Exchanging e-invoices directly between trading parties is not allowed. Either registered service providers or the centralised platform transmits the e-invoice to the buyer party.
Payment status data for each service invoice is shared.
E-reporting frequencies are based on the VAT regimes that taxpayers are subject to.

Want to learn about the upcoming mandatory e-invoicing requirements in France? Download our ebook, France: A New Horizon – E-invoicing Mandate.

E-invoicing and e-reporting in France: Rollout dates

September 2026: first phase of mandate
- Inbound e-invoicing for all companies. Outbound e-invoicing (+ e-reporting) for Large & Mid-Size businesses
September 2027: second phase of mandate
- Outbound e-invoicing (+e-reporting) for any other companies

*The e-invoicing mandate does not apply to B2C and cross-border invoices. However, there is an obligation to report those transactions so the tax administration has full visibility.

Penalties: What happens if you don’t comply

E-invoicing: €15 per invoice, capped at €15,000 per year

E-reporting: €250 per transmission, capped at €45,000 per year

Register for e-invoicing in France with Sovos

Sovos can help your business comply with the French mandate with a range of services:

Tax compliance services – to control, sign, archive and format invoicing data according to the legal requirements as well as create SAF-T (FEC) reporting for both suppliers and buyers
Connectivity services – through Sovos or via our partners to deliver e-invoice, e-reporting and lifecycle status data

Learn more about our scalable solution for France’s continuous transaction controls requirements

FAQ for e-invoicing and e-reporting in France

What is e-reporting in France?

France’s e-reporting requirements are alongside the new e-invoicing mandate, with the reporting frequency based on the taxpayers’ VAT regime requirements.

What is e-invoicing in France?

France’s e-invoicing requirements come into effect during 2024-2026, depending on business size. All companies must be able to receive e-invoices under the new rules that come into effect on July 2024.

What e-invoice format will be required in France?

When directly transmitting to the centralised platform, the structure of the e-invoices can be UBL, CII or Factur-X (a mixed format).

E-invoices exchanged between two registered service providers can use any other structured format.

During a transitional period until December 2027, taxpayers may submit their invoices in an unstructured PDF format.

Is there a mandatory platform to use for e-invoicing or e-reporting?

Transmission of all domestic B2B invoices must be through the central platform (Portail Public de Facturation – PPF) or via registered service providers connected to the platform (Partner Dematerialization Platforms – PDP).

How many countries have implemented e-invoicing?

There are a growing number of tax authorities that have implemented e-invoicing globally, including France, Italy, Saudi Arabia and India. There are also many countries working on implementing e-invoicing including Germany and Spain.

Learn more about e-invoicing and how to comply.