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e-invoicing in Poland: B2B, B2G, KSeF

Poland’s e-invoicing requirements are in flux. While the government has been required to receive e-invoices in B2G transactions since April 2019, the country’s B2G (for suppliers) and B2B e-invoicing rules are set to come into effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024, and in April 2026 for all other taxpayers.

Staying in the know is vital if your business is to avoid costly penalties.

Continue reading to learn about the current status quo of Poland e-invoicing, including the introduction of a Continuous Transaction Controls (CTC) system via the KSeF platform, as well as what you can expect going forward.

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Table of contents

1. At a glance: Poland e-invoicing

2. E-invoicing regulations in Poland

3. Benefits of e-invoicing

4. How to choose the right e-invoicing software in Poland

5. Future of e-invoicing in Poland

6. Additional obligations for VAT compliance in Poland

7. Setting up e-invoicing in Poland with Sovos

8. FAQ e-invoicing Poland

9. Additional resources

At a glance: Poland e-invoicing

Poland B2G e-invoicing

CTC Type
E-Invoice clearance via KSeF or PEF for B2G transactions carried out with public institutions will take effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 and in April 2026 for everybody else.

Network
Possible e-invoice issuance both via PEF and KSeF. If B2G, e-invoice will be issued in PEF and automatically transferred to the KSeF in order to assign a KSeF number. The PEF invoice will be visible in the KSeF in the appropriate tab for PEF invoices, and the information about the assigned KSeF number will be available in PEF.

Format
PEF format (following the European Standard EN-16931-1:2017) or KSeF format supporting XML invoices (following the logical structure FA_VAT).

eSignature Requirement
A qualified electronic signature or seal are one of the means that taxpayers must use to authenticate in KSeF.

The integrity and authenticity of an invoice are ensured by issuing structured e-invoices via KSeF.

Archiving Requirement
10 years.

Poland B2B e-invoicing

CTC Type
E-invoice clearance via KSeF for transactions carried out by taxpayers with a registered office or fixed establishment in Poland (if in the latter case, the fixed establishment participates in the supply for which the invoice is issued) will take effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 and in April 2026 for all other taxpayers.

Network
Centralised network where the e-invoice exchange is processed through the KSeF platform provided by the Ministry of Finance.

Format
XML following the logical structure FA_VAT.

eSignature Requirement
Qualified electronic signature or seal are one of the means that taxpayers must use to authenticate in KSeF.

The integrity and authenticity of an invoice are ensured by issuing structured e-invoices via KSeF.

Archiving Requirement
10 years.

E-invoicing regulations in Poland

Tax compliance is monitored and regulated by the Ministry of Finance, particularly the National Revenue Administration. After implementing the SAF-T changes in Poland in the form of JPKs (Jednolity Plik Kontrolny), the Ministry of Finance is currently revolutionising the invoicing system, introducing the centralised platform Krajowy System E-Faktur (KSeF) for the transmission of structured e-invoices.

Since 2019, public entities in Poland have been mandated to receive and process e-invoices. While currently optional for suppliers of public entities, the transmission of e-invoices will be required for B2G and B2B transactions when the mandate is implemented in 2026.

KSeF Poland: National Electronic Invoicing System

Poland has introduced a national electronic invoicing system called KSeF (Krajowy System e-Faktur), which is a centralised platform for issuing and exchanging electronic invoices with a structured format, known as FA_VAT. The go-live date for issuing and receiving invoices via KSeF has been postponed three times since it was originally announced. Once in action, buyers and suppliers in B2B and B2G transactions will be mandated to issue and receive e-invoices through the KSeF platform.

While e-invoicing through KSeF has been available on a voluntary basis (known as KSeF 1.0), the Polish Ministry of Finance has implemented several changes to the system with KSeF 2.0, scheduled for launch in February 2026. This updated version includes features such as optional B2C e-invoicing, a permanent “offline24” mode, support for attachments, and postponement of certain KSeF-related obligations.

Learn more about KSEF 2.0, the key changes and its roll out in our blog.

Poland B2B e-invoicing

The issuance of electronic invoices through KSeF has been voluntary for businesses since 1 January 2022, meaning suppliers can issue e-invoices via KSeF. However, buyers can still request to receive them in a different format outside of KSeF.

This will change when e-invoicing via KSeF becomes mandatory in 2026 for the majority of businesses in Poland – namely registered VAT taxpayers who have a registered office or fixed establishment in Poland (if, in the latter case, the fixed establishment participates in the supply for which the invoice is issued).

Poland B2G e-invoicing

Poland’s own portal, PEF (Platforma Elektronicznego Fakturowania), has been in place since 2019. It aims to centralise and facilitate B2G e-invoice transmission allowing private companies and public bodies to issue and receive electronic invoices. All public entities in Poland have been obliged to register on PEF and receive structured e-invoices since 18 April 2019.

When the mandate takes effect, the PEF and KSeF systems will merge, meaning that e-invoicing in B2G transactions will be possible both via PEF and KSeF. B2G invoices will also need to receive a unique KSeF ID.

For instance, taxpayers will be able to use features available in KSeF like semantic validation of the e-invoice. Tax authorities will be able to access such invoices, regardless of if they were issued through PEF or KSeF. Therefore, it will be possible to continue issuing B2G invoices via PEF and according to the PEF e-invoice standard.

Timeline: e-invoicing adoption in Poland

The implementation of e-invoicing in Poland has been done in stages. Here is a brief timeline of electronic invoicing’s adoption in the country:

  • October 2021: Testing period of KSeF begins
  • December 2021: Testing period of KSeF ends
  • 1 January 2022: Voluntary use of KSeF commenced
  • 17 June 2022: Poland received the derogatory decision from the VAT Directive to introduce mandatory e-invoicing via KSeF
  • 1 December 2022: Ministry of Finance published draft legislation amending the VAT Act regarding mandatory e-invoicing’s implementation
  • 15 March 2023: Poland publishes second draft law amending the VAT Act, including KSeF changes
  • 16 June 2023: The law amending VAT Act is published by the Ministry of Finance
  • 1 February 2026: KSeF enters into force for the taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024
  • 1 April 2026: KSeF enters into force for all taxpayers, except for businesses with monthly sales up to PLN 10,000 (approx. EUR 2,300)
  • 1 January 2027: Businesses with monthly sales up to PLN 10,000 (approx. EUR 2,300) must issue e-invoices via KSeF
  • 1 January 2027: Financial penalties/sanctions for KSeF-related errors become applicable, cash register invoices can no longer be issued outside of KSeF, and the requirement to provide the KSeF number for e-invoice payments goes live.
  • 1 July, 2030: Polish VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions

Refer to this blog for an in-depth timeline about e-invoicing in Poland.

Benefits of e-invoicing

While businesses will be legally required to use electronic invoices, there are benefits that taxpayers can enjoy when comparing e-invoices to traditional, paper invoicing. These include:

  • Cost savings: Reducing paper usage, postage and manual labour
  • Time savings: Electronic invoices use standardized formats and automated processes
  • Convenience: e-invoices increase interoperability across businesses
  • Increased security: Authentication and validation ensure the authenticity of transactions and the according invoices

Learn more about Sovos’ e-invoicing solution.

How to choose the right e-invoicing software in Poland

It’s not enough to accept software that accommodates e-invoicing without adapting it to the often-changing local rules and standards, resulting in the new status quo right as it comes into effect.

While functionality is important, also consider the future when choosing your ideal e-invoicing software provider.

International businesses must keep their eye on the bigger compliance picture, looking beyond local mandates to ensure they are meeting their obligations everywhere they do business. This can be heavy on resources, especially when considering the scope for regulatory updates across multiple jurisdictions.

This is why it is key to work with a global provider such as Sovos.

Future of e-invoicing in Poland

The future of e-invoicing is clear: Poland is working towards a vast implementation. A mandate will enter into force in February 2026 and become a requirement for many taxpayers. However, the implementation of VAT in the Digital Age (ViDA) cannot be forgotten when considering the future of e-invoicing in Poland. Designed to digitise the VAT system in the EU, ViDA will deliver further changes to how taxpayers in the country do business.

The future of e-invoicing and tax as a whole may be changing across the European Union, but Sovos can provide your organisation with the consistency and peace of mind you require. Bookmark this page to remain updated with the latest developments that may affect how you do business.

Additional obligations for VAT compliance in Poland

Keeping on top of the upcoming e-invoicing requirements is important, but it’s also crucial to remember other obligations your business may face when complying with Poland’s VAT regulations.

While adapting to the pressure of implementing e-invoicing, taxpayers need to remain mindful of overall VAT Compliance and the current SAF-T mandate in Poland.

The results of non-compliance can change businesses forever, but Sovos is here to help you stay on top of your obligations.

Setting up e-invoicing in Poland with Sovos

Sovos prides itself in its continuous transaction controls (CTC) software which is purpose-built for customers who must remain on top of tax obligations wherever they do business – even as regulations change in the future.

Taxpayers established in Poland will be starkly aware of the evolving demands of compliance, with B2B and B2G transactions requiring electronic invoicing.

As CTCs and e-invoicing rise in prominence globally, there has never been a better time than now to find a compliance partner who understands the rules in play and is already looking ahead at what’s to come. Sovos is the provider you can trust.

The Sovos e-invoicing compliance solution was put to work by Brown-Forman, which looked to ease the burden of compliance from its IT department. Brown-Forman was able to reallocate its resources to core business functions with peace of mind, knowing that Sovos was there to ensure its e-invoicing requirements were being met.

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FAQ

E-invoicing is mandatory in Poland for the public sector who must be able to receive e-invoices for B2G transactions. This will change when both B2G and B2B e-invoicing becomes obligatory via KSeF from February 2026 for the largest taxpayers and in April 2026 for everyone else. B2C e-invoicing will be optional.

Taxpayers will be mandated to electronically report specific information through KSeF, e.g. in cross-border transactions. In practice, e-invoicing and e-reporting are performed in the same way.

Sovos has the first global solution for e-invoicing compliance, including e-reporting functionality.

Yes, invoice archiving is mandatory in Poland. When KSeF becomes mandatory in February 2026, invoices will be automatically stored in the KSeF system for 10 years, though businesses are still advised to maintain their own archives as well.

Poland’s VAT Act mandates that invoices must be issued in two copies, with one being sent to the customer. Invoices cannot be raised before 30 days of the date of the delivery of the goods or services, but also no later than 15 days after the month they were delivered.

VAT invoices must contain numerous details as required by the tax authority, including the likes of:

  • Date of issuance
  • A unique identification number
  • Full name and address of buyer and seller
  • Description of type and quantity of supplied goods, or type and extent of rendered services
  • Date of transaction
  • VAT rate and amount payable

With the implementation of mandatory e-invoicing, additional data points are required to comply with the invoice schema.

Sending and receiving electronic invoicing for B2B and B2G transactions via KSeF in Poland will become mandatory from February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 – and in April 2026 for all taxpayers.

KSeF (Krajowy System e-Faktur) is Poland’s national electronic invoicing system, which is a centralised platform for issuing and exchanging electronic invoices. E-invoices must follow a structured format, known as FA_VAT.

Access QR codes will be mandatory on invoices shared outside of KSeF with counterparties, whether issued in online or offline mode. Additionally, a second QR code based on the KSeF certificate will be required for invoices issued in the offline modes under specific circumstances.

E-invoicing will not completely replace SAF-T (JPK – Jednolity Plik Kontrolny) in Poland, but it will eliminate the need for JPK_FA reporting for invoices issued via KSeF. JPK_FA is a standardized electronic file containing sales invoice data that Polish businesses must submit to tax authorities upon request.

Additional resources for e-invoicing compliance

E-invoicing: Your Guide

Use this guide about e-invoicing in Europe to learn more about e-invoicing compliance in general.
Read now

VAT Digitization in Eastern Europe

Your free eBook for VAT compliance, including country cards.
Learn more

Poland’s VAT Requirements

Your overview for all VAT compliance requirements in Poland.
Learn more

VAT Compliance in Poland: An Overview for Businesses

Poland VAT compliance can be a tall task for those yet to devise a future-proof strategy. Considering legislation changes frequently and the ongoing phased implementation of e-invoicing, it takes a lot of time, money and energy to meet your obligations.

This is your overview of all the tax compliance rules applicable in Poland, covering mandates and requirements such as VAT, SAF-T (JPK) and e-invoicing via KSeF. Add this page to your compliance toolbelt so you can understand and meet your obligations – both now and in the future.

Table of Contents

VAT obligations in Poland

There are several tax obligations in Poland that taxpayers must be mindful of. These include:

Poland e-invoicing

Electronic invoicing is a subject of its own when discussing Poland’s tax rules. E-invoicing is currently in development in the country; however, due to the recent postponement announced on 19 January 2024, mandatory e-invoicing via KSeF for B2B and B2G sectors will not start from 1 July 2024.

Subsequently, the voluntary phase that started on 1 January 2022 is still applicable. Certain benefits for issuing invoices via KSeF still apply in this phase so taxpayers are encouraged to begin integrations.
Find out more about Poland e-invoicing.

Poland SAF-T

Poland was one of the first European countries to streamline tax compliance and reporting for businesses by using the Standard Audit File for Tax (SAF-T) in place of traditional VAT returns. Known as Jednolity Plik Kontrolny (JPK), Poland made monthly SAF-T submissions compulsory for all taxpayers in 2018.
Read our dedicated Poland SAF-T overview.

Requirements to register for VAT in Poland

If your business in Poland involves VAT-taxable activities, you must register for VAT purposes. VAT registrations must be submitted before the first sale of goods or services is made, providing a VAT exemption is not in place.

Taxpayers looking to register for VAT in Poland are required to submit a host of documents to the tax authority. The required documents and information include:
  • VAT-R application form
  • Certificate of Incorporation
  • Tax identification number from your established country
Registering for VAT in Poland typically carries a process time of up to 30 days from the submission date.
If you need help, please contact us.

Poland: Insurance Ombudsman Contribution

While Poland does not have an Insurance Premium Tax (IPT) regime, it does have some parafiscal charges that are applicable to the insurance premium.

The Fire Brigade Tax (FBC) is applicable in special cases. There is also a so-called Financial Ombudsman Charge (FOC) to be settled online and paid to the Polish Financial Ombudsman Office on a yearly basis. This charge is applicable for all insurance companies operating under Freedom of Services (FOS) or Freedom of Establishment (FoE) in Poland as well as for Domestic Insurance Companies.

Previously, Insurer Ombudsman Charge (IOC) applied to all 18 classes of non-life insurance and life insurance policies. It was replaced by the Financial Ombudsman Charge (FOC) in January 2023.

Import VAT in Poland

The act of importation is a taxable event for which VAT is chargeable in Poland.

There is an option to use postponed accounting on imports. Poland introduced the option to defer import VAT as of 1 July 2020, enabling businesses to declare the tax through the VAT return without any cash payment. This mechanism is a great cash flow for the company as it doesn’t have to advance the VAT at Customs.

Taxable persons can use the mechanism, irrespective of whether the goods are subject to simplifications from the EU Customs Codes. To use the deferment mechanism, taxpayers must have a clear history of recent VAT compliance.

Invoicing requirements in Poland

Polish VAT invoices must be issued no later than the 15th day of the month after the taxable supply, and no earlier than 30 days before the supply of goods or completion of a service.

The electronic invoice will be considered issued on the day it is sent to KSeF, i.e. at the moment when it enters the system. When a structured invoice is assigned a KSeF number (unique ID), which contains the date of issue, it becomes legally valid. The issuance date is also in the Official Receipt Certificate (UPO).

To learn more about e-invoicing requirements in Poland, read our dedicated Poland e-invoicing overview.

Registration for OSS in Poland

One Stop Shop (OSS) has been effective in Poland since 1 July 2021, aiming to simplify VAT obligations for companies involved in distance selling.

Its main benefit is that a supplier can choose to account for the VAT due under OSS, which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU.

As a result, the company is required to register for VAT in only one EU Member State instead of registering for VAT in all EU Member States in which it operates – provided that the pan-EU threshold of EUR 10,000 in intra-EU distance sales to consumers is exceeded.

OSS can be used by businesses established in and outside the EU. If a supplier or a deemed supplier decides to register for OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under OSS.

Where the Member State of identification is Poland, the taxable person is entitled to file a notification to II Urzad Skarbowy Warszawa Srodmiescie by electronic means.

The forms for the EU OSS procedure are as follows:

  • VIU-R – notification form
  • VIU-DO – Form of the return for VAT settlements, filed for each quarter by the end of the month following a given quarter

The forms for non-EU OSS procedure are as follows:

  • VIN-R – Notification form
  • VIN-DO – Form of the return for VAT settlements, filed for each quarter by the end of the month following a given quarter

If you need help, please contact us or find more information on our dedicated guide.

Registration for IOSS in Poland

Import One Stop Shop (“IOSS”) is effective as of 1 July 2021 and applies to B2C distance sales of goods from outside the EU.

Under the standard procedure, VAT is due on all commercial goods imported into the EU Member State (the country of destination).

The purpose of IOSS is to facilitate the declaration and payment of VAT due on the sale of low-value goods of consignment valued at less than EUR 150. If the IOSS is used, the importation into the EU is exempt from VAT.

When using IOSS in Poland, a taxable person without a registered seat in the territory of the EU must indicate Poland as the Member State of identification. The taxable person in charge of the supply, or the intermediary, is entitled to file a notification with the II Urzad Skarbowy Warszawa Srodmiescie electronically.

The forms for the IOSS procedure are as follows:

  • VII-R – Notification form of taxable person
  • VII-RP – Notification form of intermediary
  • VII-DO – Form of the return for VAT settlements, filed for each month by the end of the month following a given month

If you need help, please contact us or find more information on our IOSS overview.

Intrastat and EC Sales list in Poland

Intrastat is an obligation for certain businesses that trade internationally in the European Union, relating to the movement of goods across EU Member States.

While the requirements remain similar across the region, certain Member States have implemented rules differently and each has its own Intrastat threshold for reporting. Poland’s declaration threshold for 2024 is PLN 6.2 million for arrivals and PLN 2.8 million for dispatches.

Find out more with our Intrastat guide.

VAT compliance in Poland FAQ

The standard procedure for VAT returns in Poland includes monthly filing. Taxpayers deemed as ‘small’, however, can file VAT returns quarterly if they meet specific requirements. VAT returns can be submitted by the official portal or through approved software.

VAT returns need to be filed by the 25th of the month following the accounting period. This is of utmost importance as taxpayers can be financially penalised for failing to meet the deadline, as well as the potential to accrue statutory interest and potentially face legal proceedings.

Since October 2020, there has been a Uniform Control File (JPK_VAT) that is made up of a record section and a declaration section. This consolidates data that was included in VAT returns prior to the file’s introduction.

There is a host of required information that must be included on invoices, including (but not limited to):

  • Date of issuance
  • Customer’s VAT ID number
  • Full name and address of both the supplier and customer
  • Description of quantity and type of goods supplied, or type and extent of services rendered
  • Date of transaction (or payment)
  • VAT rate applied and VAT amount payable

With the implementation of mandatory e-invoice, additional data points are required to comply with the invoice schema.

Unit price of goods or services

The standard VAT rate in Poland is 23%, though certain goods and supplies have reduced rates of 8% and 5% and some services are exempt from VAT altogether.

The VAT registration threshold for companies established in Poland is PLN 200,000.

There is no threshold on the VAT registration for foreign companies not established in Poland; they are required to register for VAT prior to making their first VAT-relevant supply in the country.

VAT applies to the supply of goods and rendering of services in Poland for consideration. VAT liability is money owed to the tax authority and is calculated by subtracting credits from the total amount of VAT a taxpayer has collected at the moment the VAT becomes chargeable.

The deadline for making the relevant VAT payment is the same as for submitting the VAT return part of the SAF-T, i.e., by the 25th day of the month following the month in which the tax point arises. VAT liabilities must be paid by bank transfer and in Polish zloty.

The Polish Tax Authorities require businesses established outside of the EU and having a VAT registration in Poland to appoint a fiscal representative in Poland. The fiscal representative can be an individual or a company, such as Sovos. The fiscal representative is jointly and severally liable with the taxpayer for the tax liability, which the fiscal representative settles on behalf of and for the benefit of that taxpayer in Poland.

It is worth noting that, since 23 February 2021, taxpayers established in Norway or Great Britain have not been obliged to appoint a fiscal representative when operating in Poland. The companies established in both Norway and Great Britain can register directly for VAT purposes in Poland. This entails that the legal representative of the company can sign the registration form without any involvement from the Polish established Company or an individual acting in the capacity of a fiscal representative.

An EU business is not required to appoint a fiscal representative to register for VAT in Poland, but it may choose to do so.

VAT applies to the following transactions in Poland:

  • The supply of goods and services within Poland for consideration
  • The export of goods outside of the EU
  • The import of goods from non-EU Member States
  • Receipt of reverse-charge services by a taxable person in Poland
  • Intra-Community supply of goods
  • Intra-Community acquisitions of goods from another EU Member State by a taxable person

The following activities are outside the scope of Polish VAT:

  • Transactions that cannot be subject to legal agreements (illegal transactions)

  • Sales of businesses (transfers of going concerns or part thereof)

The threshold for VAT registration for Polish-established businesses is PLN 200,000 (about EUR 46,000).

The VAT registration limit may apply either:

  • Retrospectively: The value of supplies of goods or services exceeded PLN 200,000 in the preceding tax year
  • Prospectively: At the start of business, the value of supplies of goods or services is expected to exceed PLN 200,000

Businesses operating in Poland may additionally opt to register for VAT regardless of reaching the threshold or if their operations comprise only VAT-exempt activities.

Non-established businesses – foreign businesses without a place of business in Poland – must register for VAT in Poland when making taxable supplies of goods or services in Poland. They are exempt from registration when they exclusively supply the following services:

  • Services and goods where the Polish purchaser pays tax under the reverse charge mechanism
  • Certain services that are subject to a zero rate (e.g., services supplied within Polish seaports, connected with international transport, services of air traffic control rendered for foreign providers of air transportation)

How Sovos can help with VAT compliance in Poland

The varied nature of tax obligations in Poland means compliance can be a resource-heavy task – especially when you consider the high probability of future updates and implementations. Choosing Sovos, a single vendor with global and local tax expertise, allows you to future-proof compliance.

Reclaim your time so you can focus on growing your business by speaking with our expert team today. Compliance is our concern.

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VAT Compliance in Romania: An Overview for Businesses

Romanian VAT Compliance can be described as a layered system conflated with different declarations and requirements, from SAF-T obligations to electronic invoicing. In this page, businesses aiming to remain compliant and looking to know the most up to date news, can find an overview of the main Romanian VAT rules. Scroll down to learn about Romanian VAT compliance requirements and how to remain compliant.

Table of Contents

Romania: General VAT information

Romania is a complex country for VAT rules, with many elements that companies need to be aware of. These include:

Periodic VAT return (Decont de taxa pe valoarea adaugata)

Monthly
25th day of the month following the end of the tax period

Quarterly
25th day of the month following the end of the tax period

Romanian Domestic Supplies & Purchase listing (Declaraţie informativă privind livrările/prestările şi achiziţiile efectuate pe teritoriul national – D394)

Monthly
30th day of the month following the end of the tax period

SAF-T (Declarației informative D406)

Monthly/Quarterly

SAF-T Stocks (Declarației informative D406)

On-demand – a minimum 30-day deadline

SAF-T Assets (Declarației informative D406)

Deadline for the submission of Financial Statements for the year

EU Sales and Purchases List

Monthly
25th day of the month following the end of the tax period

Intrastat

Monthly
15th day of the month following the relevant month

VAT rates

19%
9%
5%
0% and Exempt

Intrastat thresholds

Arrivals: RON 1 million
Dispatches: RON 1 million

VAT rules in Romania

Romania is at the forefront of VAT compliance, having implemented a broad range of requirements, from SAF-T obligations to e-invoicing. You can find more information on the various rules and requirements here:

Romania e-invoicing

A hybrid e-reporting and e-invoicing system, the Romanian CTC mandate has been introduced gradually since 2022 - with the broader requirements applicable from January 2024. The mandate is complex, requiring impacted taxpayers to be aware of the various applicable obligations.
Find out more about Romania e-invoicing

Romania SAF-T

SAF-T obligations have been a reality in Romania since 2022. Using the Declaratiei Informative D406, taxpayers report transaction and accounting data to the local tax authorities.
Learn more about Romania SAF-T

Requirements to register for VAT in Romania

Taxable persons established in Romania are required to register for VAT purposes if their annual turnover exceeds the threshold RON 300,000 (EUR 88,500). Established entities that don’t meet the threshold may opt to register for VAT purposes.

Non-established entities are required to register for VAT purposes, regardless of annual turnover, when practicing certain activities such as Intra-Community transactions or exports.

When does VAT liability apply in Romania?

In Romania, VAT liability encompasses various transaction types – including, but not limited to, the following:

  • Supplies of goods and services for consideration with place of supply in Romania
  • Imports of goods
  • Intra-Community acquisitions of goods

Invoicing requirements in Romania

Legislation in Romania states that invoices, paper or electronic, must include the following information:

  • Invoice unique serial number
  • Invoice/delivery date
  • Supplier identification
  • Recipient identification (when they are taxable subjects as well)
  • Description of the goods or services provided
  • Taxable amount
  • Applicable tax rate

Since January 2024, the Romanian B2B e-invoicing and e-reporting mandate has applied to established taxpayers and VAT registered entities – concerning all B2B transactions with place of supply in Romania.

From January 2024, VAT-registered entities must report their invoices (regarding domestic B2B transactions) to the RO e-Factura platform within five working days of issuance.

Established taxpayers are equally required to electronically report their invoices from January 2024.

The tax authority provided a three-month grace period where no penalties will apply, meaning that penalties will be imposed from April 2024.

From July 2024, the e-reporting obligation will shift to an e-invoicing requirement for transactions between established taxpayers. If established taxpayers fail to issue the invoice electronically, the invoice must be reported within five calendar days to the RO e-Factura platform.

In addition to the invoicing content requirements, which must also be included in electronic invoices, the e-invoice must comply with certain technical requirements as well.

You can find more information about Romania’s e-invoicing rules on our dedicated Romania e-invoicing page.

Registration for OSS in Romania

The EU established the One Stop Shop (OSS) in July 2021, implementing an EU-wide 10,000-euro threshold for VAT and simplifying cross-border online sales in the region simpler. This is part of the EU VAT e-commerce package.

Following the applicable Romanian VAT rules, the following fall within the scope of the OSS regime:

  • Entities established in Romania
  • Non-EU taxable persons with a fixed establishment in Romania
  • Entities which have fixed establishments in more than one EU Member State including Romania)

These entities may choose Romania as their Member State of registration for OSS purposes.

Non-EU entities, which do not have a fixed establishment in the European Union, may also register in Romania for OSS purposes – only if carrying out distance sales of goods when the goods are dispatched from Romania or any other EU Member State.

In addition to the OSS registration, taxable persons may also apply to the Import One-Stop Shop (IOSS) in Romania which concerns B2C distance sales of goods from outside the region.

Intrastat, EU Sales and Purchases List and Domestic Supplies & Purchase listing (form 394) in Romania

Intrastat returns – which are related to the movement of goods in the European Union – are submitted in Romania if the taxable person exceeds the provided threshold.

Even though Intrastat requirements remain similar across the EU, each Member State may implement rules differently. Our Intrastat Guide is a useful tool for navigating cross-border trading in the EU.

In Romania, the Intrastat threshold for both arrivals and dispatches of goods is RON 1,000,000 (around EUR 201,000). The Intrastat return must be submitted by the 15th day of the following month.

The EU Sales and Purchases List is submitted in Romania by taxable persons carrying out Intra-Community supplies or purchases of goods or certain services. The return must be submitted by the 25th day of the following month and is not required to be submitted in tax periods where no transactions occurred.

The Domestic Supplies & Purchase listing (form 394), first implemented in July 2014, is an additional return to be submitted periodically by all VAT-registered entities in Romania. The return includes data on domestic supplies and purchases between VAT-registered entities and must be submitted by the 30th day of the month following the end of the tax period.

FAQ VAT compliance in Romania

In Romania, any entity subject to taxation (not just VAT) shall receive a tax identification number.

The number of digits in the VAT number may vary.

The Romanian periodic VAT return – Decont de taxa pe valoarea adaugata – is submitted on a monthly or quarterly basis, if the taxpayers’ annual turnover remains below the equivalent in RON of 100.000 EUR. The returns must be submitted electronically by the 25th day of the month following the end of the applicable tax period.

The VAT return must include the amount of the deductible VAT as well as the VAT charged in the tax period.

Taxable persons established in Romania are required to register for VAT purposes if the RON 300.000 (EUR 88.500) annual turnover threshold is exceeded. There is no threshold for non-established entities.

The Romanian VAT Act is part of the Fiscal Code (Codul Fiscal) of 8 September 2015, adopted by Law no. 227/2015.

The applicable VAT rates in Romania are 19%, 9%, 5% and 0%.

As a rule, the standard rate of 19% applies to all supplies of goods and services.

The reduced rates of 9% and 5% are only applicable to certain specifically identified goods and services. The 9% rate applies to:

  • Medicines for human and veterinary use
  • Food supplies
  • Hotel accommodation
  • Restaurant and catering

The reduced rate of 5% is applicable to:

  • Books, newspapers, magazines and school manuals
  • Access to museums, castles, cinemas, zoological and botanical gardens
  • Passenger transport

Exceptionally, certain transactions are taxable at a 0% rate, namely:

  • Exports of goods
  • Intra-community supplies of goods

Romania’s VAT rules provide reduced VAT rates of 9% and 5%, depending on the goods and services in question.

Taxable persons not established in the EU that fall under the obligation to register for VAT purposes in Romania are obliged to appoint a fiscal representative.

Yes. Since January 2023, Romania‘s mandatory e-transport system has monitored the transport of certain goods in the national territory. The e-transport system operates in parallel with Romania’s e-invoicing system. For more information read our in-depth blog about the e-transport system in Romania.

Help for VAT compliance in Romania

Looking back at this overview, it becomes clear just how fast-paced Romania’s developing VAT compliance requirements are. Sovos helps customers navigate difficult VAT compliance landscapes worldwide, by leveraging our global coverage.

We take care of compliance so you can concentrate on growing your business.

Contact our expert team today

Additional resources

SAF-T eBook

A deep-dive on OECD’s international accounting standard
Download now

VAT digitization in Eastern Europe eBook

A comprehensive overview of VAT digitization trends in Eastern Europe
Download now

Guide to EU VAT compliance

Your guide to making VAT Compliance simple
Download now

E-invoicing guide

What you need to know about e-invoicing.
Read now

Dominican Republic e-invoicing

The Dominican Republic is just one of the many nations that are turning to e-invoicing. From 2024, established taxpayers will be required to meet strict new rules for how they execute business transactions.

Understanding what’s to come is vital, as is choosing a partner with the technical know-how and foresight to ensure compliance during change. Bookmark this page to stay updated with developments in e-invoicing in the Dominican Republic, written by regulatory experts.

Table of contents

1. At a glance: e-invoicing in the Dominican Republic

2. E-invoicing regulations in Dominican Republic

3. Timeline: e-invoicing adoption in the Dominican Republic

4. Who must use an e-invoice in the Dominican Republic?

5. How to choose the right e-invoicing software in the Dominican Republic

6. FAQ

At a glance: e-invoicing in the Dominican Republic

Dominican Republic B2G e-invoicing

CTC Type
E-invoice clearance according to the calendar, starting with the first group in May 2024

Network
The system’s web services are a set of protocols and standards that, using extensible markup language (XML) and REST API, allow the exchange of data between the heterogeneous invoicing software of taxpayers and the tax authority through an environment defined as {Environment}, finding various services in electronic invoicing

Format
Electronic invoices will be sent in an XML file, which consists of a plain text record that uses a series of custom tags to describe both the structure and other characteristics of the document

eSignature Requirement
A digital certificate for Tax Procedure, issued and signed digitally, by a certification entity authorised by INDOTEL or a certificate with an institutional link is required

Archiving Requirement
10 years

Dominican Republic B2B e-invoicing

CTC Type
E-invoice clearance according to the calendar, starting with the first group in January 2024

Network
The system’s web services are a set of protocols and standards that, using XML and REST API, allow the exchange of data between the heterogeneous invoicing software of taxpayers and the tax authority through an environment defined as {Environment}, finding various services in electronic invoicing

Format
Electronic invoices will be sent in an XML file, which consists of a plain text record that uses a series of custom tags to describe both the structure and other characteristics of the document)

eSignature Requirement
A digital certificate for Tax Procedure, issued and signed digitally, by a certification entity authorised by INDOTEL or a certificate with an institutional link is required

Archiving Requirement
10 years

E-invoicing regulation in the Dominican Republic

The electronic invoicing regulation in the Dominican Republic was published on 17 May 2023 and lays out the specific expectations and requirements for taxpayers.

Firstly, the e-invoicing regulation applies to natural and legal persons, both public and private. It also applies to entities without legal personality domiciled in the Dominican Republic that carry out the transfer of goods, delivery in use or provision and lease of services for consideration or free of charge.

All issuers of electronic invoices are to be recognised and authorised as such by the DGII and have a digital certificate for Tax Procedure issued by an entity authorised by the Dominican Institute of Telecommunications (INDOTEL).

Electronic invoices must be compliant with a set format and are to be sent to the authority and electronic receiver. Each e-invoice will have a Printed Representation (RI) of the electronic tax receipts (e-CF) which will be delivered physically to exceptional non-electronic receivers.

The regulation outlines three forms of acceptable e-CF issuance:

  • Using self-developed systems, following authorisation from the DGII
  • Using e-invoicing service providers that have been certified for compliance
  • Using the DGII’s free technological facility (known as free billing)

Find more details on the e-invoicing regulation in the Dominican Republic.

Timeline: e-invoicing adoption in the Dominican Republic

It can be difficult to stay informed about the changes to e-invoicing’s implementation in the Dominican Republic. This simple timeline details the key developments:

  • February 2019: Pilot phase for e-invoicing commences with 11 large companies
  • September 2022: Draft law filed for the Senate’s approval
  • 17 May 2023: The Electronic Invoicing Law of the Dominican Republic was published in the Official Gazette
  • 18 May 2023: The e-invoicing mandate became applicable across the nation
  • 15 January 2024: Group 1 of large national taxpayers need to have implemented e-CF by now
  • 15 March 2024: Group 2 of large national taxpayers need to have implemented e-CF by now
  • 15 May 2024: Group 3 of large national taxpayers and Government Institutions classified as Large National Taxpayers need to have implemented e-CF by now
  • 15 May 2025: E-invoicing will become a requirement for large local and medium-sized taxpayers
  • 15 May 2026: E-invoicing will become a requirement for small, micro, unclassified taxpayers and the remaining Government Institutions

Who must use an e-invoice in the Dominican Republic?

Both issuing and receiving electronic invoices are currently voluntary for both B2B and B2G transactions in the Dominican Republic. This will change in 2024 when the first wave of mandatory requirements rolls out, specifically to large taxpayers.

View the timeline below to find out exactly when e-invoicing will be obligatory for different taxpayer groups.

How to choose the right e-invoicing software in the Dominican Republic

The impending launch of electronic invoicing in the Dominican Republic brings along the need to find a system and strategy that works. Strategy isn’t one-size-fits-all; compliance is imperative and, subsequently, so is finding a solution that understands your company.

Sovos is a global compliance partner for organisations of all shapes and sizes, and our solutions not only help you to comply but also free up resources so you can focus on what really matters.

Another aspect of compliance to be mindful of is that requirements change. It’s unavoidable. Instead of jumping between solutions, organisations that partner with Sovos have peace of mind that they will be compliant in the present and meet any new demands that come in the future.

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FAQ

e-CF, otherwise known as an electronic tax receipt, is the Dominican Republic’s version of an electronic invoice. Taxpayers must submit e-CFs to the nation’s tax authority, DGII, for approval.

Once you have issued an electronic invoice, request an e-CF sequence and the DGII will validate the file. Once the tax authority has validated the e-CF, you will receive authorised versions.

The different statuses for e-CF are as follows:

  • Accepted e-CF – The document has been received and is valid
  • Rejected e-CF – The document has been received but is not valid
  • e-CF not found – The sequence is valid but has not been submitted to the Internal Revenue Service
  • In process – The document is being validated by the DGII

Regarding e-invoicing in the Dominican Republic, the Acknowledgement of Receipt only confirms that the electronic invoice has been received. The Commercial Approval indicates whether the e-CF has been accepted or rejected.

Poland SAF-T framework

Poland is one of many countries to use the Standard Audit File for Tax (SAF-T) to streamline tax compliance and reporting for businesses. The country was one of the first in Europe to replace the traditional VAT return with SAF-T.

Poland introduced its version of SAF-T, known as Jednolity Plik Kontrolny (JPK), in 2016, making monthly submissions of JPK_VAT compulsory for all taxpayers in 2018.

In 2020, JPK_VAT combined with the VAT return and is submitted with a declaration per the frequency of the VAT Return (monthly or quarterly).

Submission of the remaining seven JPK structures is upon request of the tax authority in the event of an audit.

Please note: JPK_VAT with the declaration is in the process of changing as a result of the introduction of mandatory e-invoicing via KSeF in Poland.

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Table of contents

1. The legal framework of SAF-T in Poland

2. Timeline SAF-T in Poland

3. Understanding JPK VAT and SAF-T in Poland

4. Implementing SAF-T as a business

5. Other requirements for VAT compliance in Poland

6. FAQ

7. How Sovos can help

8. Related resources

The legal framework of SAF-T in Poland

The Poland SAF-T framework consists of eight JPK structures:

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

Other than the monthly or quarterly periodic submission of JPK_V7M/K, submission of all other JPK structures is on demand.

However, from 1 January 2025, reporting of JPK EWP, JPW PKPIR, and JPK_KR will become a periodic reporting obligation.

Timeline SAF-T in Poland

  • 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 obligation

Understanding JPK VAT and SAF-T in Poland

One of the eight JPK structures in Poland is JPK_VAT, a declaration combining VAT purchase and sales records. As of 2020, JPK_VAT must be sent alongside VAT returns to the tax authority.

JPK_VAT with the declaration has two variants, depending on the submission frequency of the VAT return:

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

Submission of JPK_V7M and JPK_V7K is on the 25th of the month following the reporting period.

The other SAF-T JPK structures for VAT are JPK_FA for VAT invoices and JPK_FA_RR for flat-rate VAT invoices. JPK_FA and JPK_FA_RR are both submitted on demand.

Implementing SAF-T as a business

SAF-T requires additional data to analyse and authenticate the accuracy of documentation. All data submitted in the SAF-T consolidated submission must be accurate and complete to ensure compliance.

Data for SAF-T requirements is often extracted from multiple sources for a single report and combining this data can be difficult.

The data required for SAF-T differs significantly from other reporting obligations that businesses might be familiar with. The XML format required for reports makes it difficult to review, compare or test reports ahead of submissions.

Sovos SAF-T Solutions

Sovos’ SAF-T software solutions help businesses manage their SAF-T requirements across multiple jurisdictions, including Poland.
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Sovos SAF-T Extraction

Sovos SAF-T Extraction automates processes to seamlessly extract required data.
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Sovos SAF-T Generation

Sovos SAF-T Generate maps data accurately to SAF-T structures in the latest legal formats for timely SAF-T reporting.
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Sovos SAF-T Analysis

Sovos SAF-T Analysis performs deep analysis on SAF-T output generated. Sovos’ managed services is available for non-EU businesses selling in Poland requiring fiscal representation.
Learn more

Other requirements for VAT compliance in Poland

As well as Poland’s SAF-T requirements, taxpayers need to also be aware of the KSeF e-invoicing mandate. Poland’s continuous transaction control (CTC) e-invoicing system is mandatory as of 1 July 2024, expanding to VAT-exempt taxpayers in 2025. Read this overview for a general introduction to Poland VAT compliance.

FAQ

JPK_VAT with a declaration is an electronic document that includes both VAT records, combining information on purchases and sales and VAT returns (VAT-7M and VAT-7K).

JPK_VAT is submitted on a monthly or quarterly basis.

Yes, SAF-T is mandatory in Poland. JPK VAT with a declaration must be sent to the tax authority on a periodic basis, while other types of JPKs are sent on demand.

Failure to comply with the SAF-T requirements in Poland can lead to penal and fiscal sanctions, based on a misdemeanor or a felony. If the value of the reduction of the tax liability exceeds PLN 10,000, it is a crime.

Submission of JPK_VAT with the declaration (JPK_V7M and JPK_V7K) is on the 25th day of the month following the reporting period. Other JPKs are submitted to tax authorities within three days after receiving a request from the tax authority.

Our Solution capabilities for Poland SAF-T

Data Extraction

Painlessly aggregate and consolidate data from a wide range of source systems complying with Poland’s SAF-T requirements including JPK files.

More about data extraction

Data Analytics

Check the accuracy, integrity and quality of complex data structures required by Poland SAF-T to give you peace of mind before you submit your JPK files to the tax authority.

More about data analytics

File Generation

Ensure that all required data sets from accounting entries, sales and purchase transactions, asset depreciation, stock movements and more, are mapped seamlessly into Poland’s JPK schema, ready to be analyzed and submitted to the tax authority.

More about file generation

Get the information you need

Related resources

VAT Digitization in Eastern Europe

Free ebook including country cards for VAT compliance
Learn more

Poland: E-Invoicing

An overview for e-invoicing obligations in Poland
Learn more

SAF-T International Standards

Your ebook for all things SAF-T
Read now

Romania e-invoicing

E-invoicing in Romania is developing fast. With a current B2G and High Fiscal Risk B2B mandate already in place and a new obligation facing all companies with operations in Romania from 1 Jan. 2024, it can be hard to stay on top of your business’ requirements. Failing to comply with Romania’s e-invoicing and e-reporting mandates will result in penalties, but more importantly, it will lead to invalid tax invoices – which don’t allow for VAT deduction – and, ultimately, may also trigger protracted tax audits, so it is crucial that you are aware of your requirements.

Read on to learn about the current state of Romania e-invoicing – from continuous transaction controls (CTC) and e-Factura to B2B e-invoicing developments – and what’s to come.

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Table of contents

1. At a glance: Romania e-invoicing
2. E-invoicing regulations in Romania
3. Benefits of e-invoicing
4. How to choose the right e-invoicing software in Romania
5. Future of e-invoicing in Romania
6. Additional obligations for VAT compliance in Romania
7. FAQ
8. Setting up e-invoicing and e-reporting in Romania with Sovos
9. Additional resources

At a glance: Romania e-invoicing

Romania B2G e-invoicing

CTC Type
E-invoice clearance coupled with e-reporting requirements for transactions carried out between January and July 2024 with public institutions

Network
Centralised network where the e-invoice exchange is primarily processed through the RO e-Factura platform

Format
UBL 2.1 XML format file following CIUS RO national validation rules

eSignature Requirement
Digital Seal applied by the Ministry of Finance

Romania B2B e-invoicing

CTC Type
E-invoice clearance coupled with e-reporting requirements for transactions carried out by VAT-registered entities

Network
Centralised network where e-invoice exchange is primarily processed through the RO e-Factura platform

Format
UBL 2.1 XML format file following CIUS RO national validation rules

eSignature Requirement
Digital Seal applied by the Ministry Of Finance

Archiving Requirement
10 years

E-invoicing and e-reporting regulations in Romania

Romania introduced e-invoicing on a voluntary basis in November 2021 for B2G and April 2022 for B2B transactions. Romania’s Government Emergency Order no. 120/2021 implemented the RO E-Factura platform, the country’s e-invoicing system.

From July 2022, e-invoicing became mandatory for B2G and B2B transactions of so-called ‘high fiscal risk products’ following article II of Law no. 139/2022.

Romania applied for a derogation from the EU VAT Directive, aiming to implement a broader B2G and B2B e-invoicing and e-reporting mandate. The EU Council granted derogation in July 2023, allowing Romania to implement mandatory e-invoicing from 2024. The enacting of Law no. 296/2023 provides a new B2G and B2B e-invoicing mandate coupled with e-reporting requirements.

What is RO e-Factura?

RO e-Factura was officially launched in November 2021 as a voluntary clearance program for e-invoices, devised in an effort to streamline Romania’s tax collection. Users of e-Factura issue and submit their electronic invoices in a structured XML format through the system. Invoices are then cleared (following certain schema checks) and a digital seal is applied.

The RO E-Factura platform enables the automatic exchange of electronically issued invoices between entities registered in the system.

Romania B2B e-invoicing and e-reporting

B2B e-invoicing is already in play for transactions that include products deemed a high tax risk, including:

  • Fruit and vegetables
  • Alcoholic beverages
  • Mineral products
  • Construction materials
  • Clothing and footwear

Following the recently published mandate, B2B e-invoicing requirements will extend to all products. From January 2024, established and VAT-registered entities are required to report B2B domestic transaction invoices to the RO E-Factura platform within five days of issuance. From July 2024, invoices issued in transactions between established entities must be issued electronically through the RO E-Factura platform.

If, however, taxpayers fail to issue the invoice electronically through the RO E-factura platform, they are obligated to submit it to the RO e-Factura platform within five calendar days.

Romania B2G e-invoicing

From 1 July 2022, Romanian taxpayers were obliged to issue e-invoices, submitting them through the RO e-Factura system, when conducting business with the public sector. This obligation was namely within the context of certain public procurement contracts.

Romania’s e-invoicing mandate has expanded the scope of B2G invoicing in Romania which will apply to all transactions with public institutions from 2024.

Romania e-Transport system

Romania’s e-Transport system, often referred to as RO e-Transport, is used to monitor products when they are being transported. Coupled with the implementation of the CTC mandate, this is another reform that the nation has devised as part of its plan to combat tax fraud and evasion.

The application procedure of the RO e-Transport system has been approved by the joint Order of the National Agency for Fiscal Administration (ANAF) and the Romanian Customs Authority (AVR) no. 1190/4625/2022, with penalties applicable from October 2022.

The RO e-Transport system requires taxpayers to declare the movement of goods from one location to another, in advance of said movement. Once declared, it issues a number on the transport documents which is to be verified by authorities en route.

Read more about Romania e-transport system.

Timeline: e-invoicing & e-reporting adoption in Romania

The implementation of e-invoicing in Romania has been done in stages. This is a brief timeline of its adoption:

  • March 2020: E-invoicing system e-Factura is launched as a pilot program
  • October 2020: Government Emergency Ordinance (GEO) no. 120/2021 introduced the legal framework for the implementation of e-Factura
  • November 2021: Start of the voluntary phase for issuance of e-invoices for B2G transactions
  • April 2022: Invoices for B2B transactions of high fiscal risk transactions can be voluntarily submitted in e-Factura
  • July 2022: It is now mandatory to issue invoices for B2B transactions of high fiscal risk products through the RO e-Factura platform
  • January 2024: For B2B transactions, established taxable persons and VAT registered entities must report invoices in the e-Factura system within five days of issuance
  • April 2024: End of three-month grace period for e-invoicing mandate. Penalties will apply to non-compliant taxpayers
  • July 2024: The system will shift to an invoice clearance system for B2B transactions between established taxpayers
  • 1 July, 2030: Romanian VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions.

Benefits of e-invoicing

From a business perspective, e-invoicing offers several benefits when compared to traditional invoicing. Benefits may include:

  • Saving costs by reducing paper, postage and manual labour
  • Saving time by using structured, automated electronic systems and processes
  • Increased compatibility and interoperability across businesses with initiatives like PEPPOL
  • Enhanced security can be achieved with the validation and authentication of systems like e-Factura

How to choose the right e-invoicing software in Romania

Considering the ever-evolving nature of regulations and mandates surrounding newer technologies and platforms like RO e-Factura, it is important that your business identifies and utilises the right software. The cost of using e-invoicing software that does not update with changes to regulations is not desirable for any organisation.

Setting up e-invoicing and e-reporting in Romania with Sovos

Get in touch with a Sovos expert to explore setting up e-invoicing and e-reporting in Romania.

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Future of e-invoicing in Romania

The future of e-invoicing in Romania has already arrived. Following the EU Council’s derogatory decision to allow Romania to implement mandatory e-invoicing, Romania published a more comprehensive B2B mandate with a 2024 roll-out date. The new law requires businesses to issue structured electronic invoices for transactions to both business and public sector entities, and it applies to established and VAT-registered entities.

The looming implementation of VAT in the Digital Age in the EU may deliver more changes in Romania, however. Aiming to digitise the European VAT system, this proposal is generating a lot of uncertainty for businesses that conduct operations in the EU as it includes requirements for digital reporting and e-invoicing – as well as changes to VAT registration

While the future of tax in the European Union may be uncertain, you can rely on Sovos to help you navigate the digital landscape. Bookmark this page to stay up to date with the latest developments.

Additional obligations for VAT compliance in Romania

While it’s important to ensure your business complies with Romania’s e-invoicing requirements should it qualify, there are other obligations that require attention – including general VAT Compliance and the Romanian SAF-T mandate.

The cost of non-compliance may be severe, but our materials and experts can be the helping hand you need to ensure you are meeting your obligations.

FAQ

E-invoicing will be mandatory for all B2B transactions in Romania from 1 July 2024, adding to the existing electronic invoicing requirements for B2G and high fiscal risk B2B transactions.

Between January and June 2024, established entities are required to report their B2B invoices to the RO e-Factura platform within five days of issuance. This reporting obligation applies to VAT-registered entities from January 2024 onwards.

There are numerous requirements for invoices in Romania, including:

  • Date of issuance
  • VAT number of both supplier and customer
  • Full name and address of both supplier and customer
  • Full description of applicable goods or services, including quantities
  • The net supply value
  • The gross invoice value
  • The applicable VAT rate

The Romanian e-Factura is a clearance system which sees e-invoices sent, cleared and received through the central platform.

Should a taxpayer in scope of the e-invoicing and e-reporting mandate not comply with its e-invoicing obligations, they may receive a fine. From April 2024 (at which time the 3-month grace period ends) 2024, large non-compliant taxpayers may be fined between 5,000-10,000 RON, and others may expect a financial penalty between 500-2,500 RON, when failing to meet the e-reporting requirements set forth. From July 2024, non-compliance with the with the issuance and receipt of e-invoices will result in a fine equal to 15% of the total invoice amount.

E-invoice and e-report in Romania with Sovos

Sovos’ continuous transaction controls (CTC) software was purpose-built to help customers stay on top of their obligations, wherever they do business, even as the rules change.

As CTCs and e-invoicing continue to grow in global adoption, it is vital to partner with a provider that closely monitors the decisions of tax administrations and understands the regulations you face. Sovos can help.

One of the largest spirits companies in the world, Brown-Forman turned to Sovos for help with several challenges it was facing surrounding changing e-invoicing regulations. The company needed a solution that would monitor and implement the fiscal requirements of the countries it operated in.

With Sovos e-invoicing compliance in place, Brown-Forman was able to redeploy its resources to core business functions knowing that its e-invoicing requirements were being met – both in the present and the future.

Get in touch with us

Additional resources for e-invoicing compliance

E-invoicing: A Guide

Use this guide about e-invoicing in Europe to learn more about e-invoicing compliance in general.
Read now

VAT Digitization in Eastern Europe

Download this ebook for e-invoicing and real time reporting in Eastern Europe.
Learn more

E-invoicing Strategy with SAP

Learn how to solve the e-invoicing dilemma.
Learn more

Romania SAF-T declaration

Since 2022, medium and large taxpayers in Romania have had to report their VAT electronically to the tax authority under the international standard known as SAF-T (Standard Audit File for Tax).

Romania implemented SAF-T to improve the data it receives in VAT returns, requiring more granular detail that is reported in real time. As well as benefiting the Romanian tax authority, the electronic submission of the D406 streamlines tax compliance and reporting for businesses.

Get in touch

Table of contents

1. The legal framework of SAF-T in Romania
2. How to declare tax information with the SAF-T system in Romania
3. What information must be declared to the ANAF?
4. When to submit a SAF-T declaration in Romania
5. Timeline SAF-T in Romania
6. Understanding SAF-T D406 in Romania
7. Implementing SAF-T as a business
8. Other requirements for VAT compliance in Romania
9. FAQ
10. Our Solution
11. Related resources

The legal framework of SAF-T in Romania

The SAF-T mandate in Romania has been introduced through the amendment of the Fiscal Procedure Code, which foresees the obligation for taxpayers to submit a declaration containing information from the accounting and tax records.

The Fiscal Procedure Code also determines that the submission of the SAF-T file must be done electronically, leaving the remaining conditions to be determined by order of the ANAF.

Accordingly, ANAF has issued Order No. 1783, of 4 November 2021, which introduced the SAF-T reporting requirement from 1 January 2022. The Order provided the SAF-T Form D406, as well as the legal deadlines for submitting the various SAF-T files and the procedure and conditions for submission.

In these terms, the D406 file must be submitted electronically by generating an XML format file, which is submitted to a validation procedure, and preparing the corresponding D406 Form in PDF format.

The various SAF-T files can be submitted monthly, quarterly, annually and on-demand, depending on the VAT regime applicable to the taxpayer as well as on the type of file being submitted.

How to declare tax information with the SAF-T in Romania

Transaction and accounting data must be reported through Declaratiei Informative D406. Taxpayers are required to submit the information electronically in PDF format with an XML attachment and electronic signature.

What information must be declared to the ANAF?

The Romanian SAF-T file, the D406, is comprised of five sections:

  1. General Ledger
  2. Accounts Receivable
  3. Accounts Payable
  4. Fixed Assets
  5. Inventory

The SAF-T D406 file to be submitted on a quarterly/monthly basis does not include information on Fixed Assets or Inventory. That data will be part of separate SAF-T files with different filling frequencies, namely the D406 Assets and the D406 Stocks.

Non-resident and small taxpayers will be required to submit a simplified SAF-T file from 2025 that will only account for the purchases and sales carried out through their Romanian VAT ID.

When to submit a SAF-T declaration in Romania

Submission deadlines for SAF-T in Romania can be monthly/quarterly, annual or on demand by the tax authorities.

Monthly or quarterly: The D406 file, except for the ‘Assets’ and ‘Stocks’ sections, shall be submitted monthly or quarterly by resident taxpayers, depending on the applicable VAT regime. The deadline for submission is the last calendar day of the month following the end of the reporting period.

Annual: The ‘Assets’ section can be submitted autonomously and must be filled annually by resident taxpayers within the deadline for submitting the annual financial statements.

On request: The ‘Stocks’ section shall be submitted only if requested by the tax authorities within the deadline established by that request, which cannot be shorter than 30 days.

Timeline of SAF-T in Romania

Romania’s implementation of SAF-T began on 1 January 2022 but only for a specific category of taxpayers. The following dates are when the SAF-T obligation applies to different types of taxpayers:

  • September 2021: Voluntary test period began
  • 1 January 2022: Large taxpayers included in the tax authority’s list from 2021 must file SAF-T
  • 1 July 2022: Large taxpayers who were not in this category on 1 January 2022 must file SAF-T
  • 1 January 2023: Medium-sized taxpayers, financial institutions and insurance firms categorised as large taxpayers must file SAF-T
  • 1 January 2025: Small taxpayers and non-resident taxpayers registered for VAT in Romania must file SAF-T

Understanding SAF-T D406 in Romania

The SAF-T D406 statement is required to be submitted each month or quarter to the Romanian tax authority (ANAF). The submission frequency is dependent on the company’s VAT regime, and it can either be monthly or quarterly.

There is also an annual SAF-T report under D406 – based on the taxpayer’s financial year – which includes asset information from the previous year, as well as a D406 Stock information report which is to be created based on the ANAF’s request.

The SAF-T file must be submitted electronically, through the tax authorities’ public service “Servicii online – Depunere declarații”​.

Implementing SAF-T as a business

Compliance is important for businesses if they are to avoid fines and other penalties from Romania’s tax authorities. To comply with SAF-T, taxpayers must meet reporting deadlines with relevant and complete information – the use of purpose-built solutions can help with this.

Sovos SAF-T solutions can help your organization save time and effort when ensuring compliance with the mandate. Automating the process of preparing files helps not only with efficiency but also accuracy and compliance, providing peace of mind and freeing up valuable time.

For taxpayers established outside of the EU, complying with Romania’s VAT rules requires the appointment of a fiscal representative should they sell in the country. Sovos can help here too – contact us for more information.

See our solution capabilities

Other requirements for VAT compliance in Romania

Tax compliance in Romania goes beyond the SAF-T obligation, especially with Romania’s big push into e-invoicing.

The country introduced an e-invoicing requirement for B2B transactions of high-fiscal risk products in December 2021 and followed that up with an obligation for B2G transactions in May 2022. Both were implemented in July 2022.

Romania is aiming to make e-invoicing mandatory for B2B transactions of all types. Following the EU Council’s derogatory decision, allowing Romania to implement mandatory e-invoicing, Romania published a new B2B mandate with a 2024 roll-out date. The new law also introduces a new reporting system that will operate within the first six months of the introduction of the RO e-Factura e-invoicing system in July 2024. Read more in this overview about e-invoicing in Romania or take a look at this overview about VAT compliance in Romania.

Get in touch with our experts if you need help.

FAQ

SAF-T became mandatory for large resident taxpayers in Romania in January 2022, and for medium-sized resident taxpayers in January 2023. Small and non-resident taxpayers will be obligated under the SAF-T mandate in January 2025.

While SAF-T has a similar reporting format across countries, each country as its own mandatory fields. In Romania, three different declarations are submitted by taxpayers: the general D406 file, the D406 Assets and the D406 Stocks.

SAF-T in Romania currently applies to medium-sized and large resident taxpayers. Small and non-resident taxpayers will need to comply with SAF-T from 2025.

Taxpayers who fail to comply with SAF-T in Romania by not submitting the D406 report may be fined by the tax authority. There is a three-month grace period for non-submission in which no fines will be issued, but after the period a fine of 1,000-5,000 RON may be imposed. For an incorrect or incomplete submission, taxpayers may receive a fine of 500-1,500 RON.

The submission deadline for SAF-T in Romania ends on the last day of the month following the reporting period, which is either a month or a quarter for information outside of stocks and assets.The D406 Assets declaration is to be submitted within the deadline for the yearly submission of the taxpayer’s financial statements.

The D406 Stocks declaration is to be submitted on demand, within the deadline prescribed by the Tax Authorities (a minimum 30-day deadline).

Our Solution capabilities for Romania SAF-T

Data Extraction

Painlessly aggregate and consolidate data from a wide range of source systems across General Ledgers, Accounts Receivable, Accounts Payable (for monthly or quarterly submissions), Fixed Assets (for annual submissions) and Inventory (submitted on demand) complying with Romania’s standard tax control file, D406.

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Data Analytics

Check the accuracy, integrity and quality of complex data structures required by Romania SAF-T to give you peace of mind before you submit your D406 file to be audited by the ANAF.

More about data analytics

File Generation

Ensure that all required data sets from accounting entries, sales and purchase transactions, asset depreciation, stock movements and more, are mapped seamlessly into Romania’s D406 schema, ready to be analyzed and submitted punctually to the ANAF.

More about file generation

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Related resources

VAT Digitization In Eastern Europe

Free ebook including country cards for VAT compliance
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SAF-T International Standards

Your ebook for all things SAF-T
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European VAT Compliance

An ebook to making VAT compliance simple
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Spain e-invoicing: What you need to know

Spain e-invoicing

Spain is one of many European countries to adopt e-invoicing for taxpayers. With several standards to comply with and additional regional VAT compliance, understanding Spain’s e-invoicing requirements can be complex.

Our regulatory experts break down what you need to know, from specific B2B and B2G standards to required formats. Bookmark this page to stay up to date with the latest e-invoicing requirements in Spain.

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Contents

Table of Contents

Who must use e-invoicing in Spain?

Electronic invoicing in Spain has been mandatory for all transactions between public administrations and their suppliers since 2015.

Businesses are under varying e-invoicing obligations depending on the nature of their transactions. Electronic invoices will soon be mandated for business-to-business (B2B) transactions, whereas business-to-government (B2G) transactions may already qualify for e-invoicing. More information on the specifics of a company’s compliance obligations can be found below.

How does e-invoicing in Spain work?

From an e-invoicing perspective, Spain is a post-audit country. There is not an e-invoice clearance requirement, but Spain has been an early adopter of the CTC method in the EU with the introduction of mandatory near real-time invoice data reporting.

Currently, Spain’s tax authority is transitioning to adopt a mandatory B2B e-invoicing requirement that will significantly affect the country’s e-invoicing process.

Spain B2B E-invoicing

Spain originally planned to launch its B2B e-invoicing mandate in July 2024 but postponed it. As the Spanish government commits to giving a year’s notice before implementing a passed law, businesses can currently expect a 2025 launch for the mandate.

The country is expected to implement B2B e-invoicing in a phased approach, with it initially affecting large taxpayers and all other taxpayers joining them a year later.

Read more on Spain B2B e-invoicing.

Spain B2G e-invoicing

Since 2015, e-invoicing has been mandatory in Spain in the public sector. Law 25/2013 mandates that all invoices sent to public sector entities must be sent electronically and signed with an eSignature. All public entities receive invoices through one common point of entry, namely FACe.

An exception to the rule allows paper invoices to be sent to public administrations if the transaction amount is under 5,000 euros.

Timeline for e-invoicing requirements in Spain

The mandatory B2B electronic invoicing requirement will be effective according to the annual turnover of the taxpayer:

  • Entrepreneurs and professionals whose annual turnover exceeds €8 million will have one year after the regulatory framework is approved
  • For the rest of the entrepreneurs and professionals, the electronic invoicing obligation will take effect two years after the regulatory framework is approved
  • 1 July, 2030: Spanish VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions.

This timeline will be updated when official implementation dates are announced.

What is the required format for an e-invoice in Spain?

Spain’s approved e-invoicing format for B2G transactions is FacturaE and it follows the XAdES standard and uses XML signatures. The central platform to send e-invoices to public administrations is FACe, though business transactions are to be processed through web service FACeB2B.

E-invoices in Spain must comply with EN 16931 and are required to include set information, including:

  • QR code
  • VAT number
  • Date and time
  • Invoice number
  • Total invoice amount including taxes
  • Unique identification number (Número de Identificación Fiscal or NIF)

The e-invoice issuer must archive the electronic document for a minimum of six years.

Spain - Alcalá

Standards and communications for e-invoicing in Spain

Spain - Toledo

There are several e-invoicing standards in play in Spain, governing how the process is carried out by taxpayers.

The format of e-invoices for B2G transactions must meet set standards, for example. Namely, electronic invoices must follow the FacturaE format – an XML-based national standard that is used in tandem with a secure eSignature which follows the XAdES standard.

Once e-invoicing for B2B transactions comes into effect, the format of e-invoices must comply with the EN 16931 standard. The following will be accepted:

  • EDIFACT invoice messages compliant with ISO 0735
  • UBL Invoice and Credit note messages in accordance with ISO/IEC 19845:2015

In terms of communication for e-invoicing in Spain, FACe is the singular hub for submitting electronic invoices in B2G supplies.

What else is required for full VAT compliance in Spain?

Spain is a notoriously complex country where VAT compliance is concerned. The tax authority has numerous rules in place that businesses need to be aware of to be fully compliant. For an overview read this comprehensive page about VAT compliance in Spain.

Batuz

A tax control strategy implemented by the Bizkaia government, Batuz applies to all companies and self-employed persons who are subject to Bizkaia regulations. This is the case regardless of a taxpayer’s size or volume of operations.

Spain SII

A demanding mandate comprised of an electronic VAT system that affects large companies across Spain. Those who qualify for Spain SII must stay on top of the four-day reporting period.

TicketBai

Only applying to specific taxpayers, TicketBAI is invoicing software that follows set standards in order to ensure the integrity, conservation, traceability and inviolability of records.

IPT in Spain

While not VAT, Insurant Premium Tax (IPT) is still an important tax that companies need to keep in mind.

How Sovos can help

By now, you will be fully aware that tax compliance in Spain isn’t simple for many businesses. You don’t have to do things alone, though – Sovos can help, combining local tax expertise with complete compliance solutions.

Speak with a member of our team today to free yourself up and focus on what truly matters: your business.

Looking for more VAT compliance resources?

Guide to European VAT Compliance

Your guide to making VAT compliance simple
Get the guide

Blog: Continuous Transaction Controls

Increase your understanding of continuous transaction controls with our blog, written by a Sovos tax expert
get the e-book

Annual Report: Trends 13th Edition 2022

Read the 13th Edition of Trends, our annual VAT report
Read the report

eBook: VAT Digitization in Eastern Europe

A Quick Guide to E-invoicing and Real-Time Reporting
Get the ebook

Looking for direct advice on e-invoicing compliance?

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VAT Compliance in Spain for Businesses

Recent tax updates in Spain:

• B2B e-invoicing draft regulation published
• New invoicing requirements draft regulations
• A quick guide for IPT 

Spain VAT compliance is dense, but it doesn’t have to be hard to achieve. Spanish VAT legislation has been amended numerous times since it was introduced, and there are other regulations organisations need to be aware of too – from SII to e-invoicing.

This is your hub for all things VAT compliance in Spain, covering all mandates and requirements that may apply to your business. Use this page to gain an in-depth understanding of Spanish VAT rules and regulations and how to comply.

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Table of Contents

VAT rules in Spain

Spain is a complex country for VAT rules, with many elements that companies need to be aware of. These include:

SII Spain

An electronic VAT system that affects thousands of large companies across the country. The mandate is demanding, with the impacted groups having to stay on top of the four-day reporting period.
Learn more about SII Spain

Spain e-invoicing

The Spanish government has published a draft regulation with the framework for implementing mandatory B2B e-invoicing. The proposed legislation outlines the operation of the Spanish e-invoicing system. Its main feature is the reliance on the principles of interoperability of e-invoice formats and interconnectivity of e-invoicing platforms.
Learn more about Spain e-invoicing

TicketBAI

Invoicing software that follows specific standards to guarantee the integrity, conservation, traceability and inviolability of records. Specific taxpayers are obliged to use TicketBAI when issuing invoices or supporting documents.
Learn more about TicketBAI invoicing

Batuz

Batuz is a tax control strategy implemented by the Bizkaia government that applies to all companies and self-employed persons subject to the regulations of Bizkaia – regardless of their size and volume of operations.
Learn more about TicketBAI invoicing

IPT in Spain

An additional tax that companies in Spain need to be mindful of is Insurance Premium Tax (IPT). This particular tax can be complex to navigate as it requires correct submission to the five different tax authorities: Alava, Guipuzkoa, Navarra, Statal and Vizcaya. The basis for calculating IPT is the total amount of the premium payable by the insured, excluding funds for the insurance of extraordinary risks and fire brigade tax. Companies must show the tax in addition to the premium.
For more information read on IPT in Spain

Requirements to register for VAT in Spain

Prior to July 2021, foreign sellers were required to be VAT registered if their annual imports into Spain exceeded 35,000 euros. From that date, as per an EU-wide ruling, the threshold was lowered to 10,000 euros. If a company’s annual turnover exceeds that amount, it is liable for VAT in all EU Member States.

Companies that supply goods or services that are subject to VAT in Spain must apply for a domestic VAT ID with their local Administración de la Agencia Estatal de Administración Tributaria (AEAT) branch and appoint a Spanish fiscal representative to communicate with the Spanish tax office on their behalf.

Sovos’ team of experts are specially equipped to handle VAT registration for businesses. Contact us today for further information.

When does VAT liability apply?

In Spain, VAT liability applies to the following types of transactions:

  • Supply of goods or services that takes place in Spain, made by a taxable person
  • Specific intra-community acquisitions (both arrivals and dispatches)
  • Domestic reverse charge
  • Importation

Invoicing requirements in Spain

Spain has strict requirements for the creation, processing and storage of invoices. Invoices must be issued by the 16th of the month following the supply for taxable customers and at the time of the supply for non-taxable customers.

Legislation in Spain declares invoices must include basic details such as:

  • Supplier details
  • Customer details
  • Date of issuance (and date of transaction if they differ)
  • Full description of the goods or services
  • Amount chargeable for goods or services
  • Net taxable supply value
  • Gross amount of the invoice
  • Applied VAT rate(s) and VAT amount per rate

The Spanish government has published a draft regulation with the framework for implementing mandatory B2B e-invoicing. As it is still a draft, taxpayers can expect changes before publication of the final version.

Read our dedicated blog for more information on Spain B2B e-invoicing

Registration for OSS

The EU established the One Stop Shop (OSS) in July 2021, implementing an EU-wide VAT threshold of 10,000 euros and making cross-border online sales in the region simpler. This is part of the EU VAT e-commerce package.

Those registering for the scheme are required to provide specific information to the Member State of identification, and Member states are free to choose how they collect such information electronically.

In addition to OSS, businesses trading in Spain and other EU Member States need to comply with Intrastat. There are country-specific Intrastat thresholds that, once exceeded, require registration and returns for compliance. This system is in place to collect information and produce statistics on the movement of goods between EU Member States.

FAQ VAT compliance Spain

The VAT law in Spain is known as LIVA and has been amended several times so it aligns with EU VAT legislation. Spain does not have a VAT registration threshold, meaning both resident and non-resident taxpayers must register for VAT in the country before they provide taxable supplies.

Typical required information on VAT invoices in Spain include the date of issuance and transaction, supplier’s VAT number, description of goods or services, net value of supply, VAT rate(s) applied and addresses of both the supplier and customer.

The standard VAT rate in Spain is 21%. That said, the country also has zero-rated goods which must be reported on VAT returns – even though no VAT will be charged on the products.

Spain has a reduced VAT rate of 10% for health products, hotels, restaurants, and sports and entertainment activities, and 4% for certain food items, books, magazines and newspapers.

Spain does not have a VAT registration threshold, meaning both resident and non-resident taxpayers must register for VAT in the country before they provide taxable supplies.

How Sovos can help

It should be clear now that VAT compliance in Spain can be a tall, complex task. Future-proof your compliance with Sovos, a single vendor with both global and local tax expertise. 

Contact our expert team today so you can concentrate on growing your business without compliance concerns.

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Important verifications beyond TIN matching

TIN matching typically occurs at two points when paying a vendor or customer: when onboarding a new vendor or customer based on information collected on Form W9 and prior to reporting amounts paid on 1099s to ensure name/TIN information is still accurate. When it comes to onboarding new vendors or customers, there are two additional verifications beyond TIN matching businesses must be aware of. Understanding these verifications can help prevent your organization from working with fraudulent individuals or businesses.

Read more about verifications beyond TIN matching.

Japan's Tax System

Japan's Tax System

Starting with the introduction of a multiple tax rate system in 2019, Japan is in the middle of a multi-year process of upgrading its consumption tax system. Through this significant change, the Japanese government seeks to solve a tax leakage problem that has existed for years.

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Japan's tax reforms

The recent series of tax reforms in Japan started with the introduction of its multiple tax rate system on 1 October 2019. Following this, changes in the country’s indirect tax, the Japanese Consumption Tax (JCT), started to take place. To counter systemic problems caused by the current ledger system structure, anew system – the Qualified Invoice System –will be introduced from 1 October 2023. The key difference from the current system is that a Qualified Invoice must include a breakdown of applicable tax rates for that given transaction.

Not long after these changes were announced, a new organisation, the E-Invoice Promotion Association (EIPA), was established in July 2020. It aims to promote digitization of overall commercial transactions. Leveraging the opportunity presented by the new Qualified Invoice System, the EIPA began to work on developing a standard specification for electronic invoices.

Since January 2021, the EIPA – with support from the Japanese government – has been working with the OpenPEPPOL team to develop a Japanese specification that meets the country’s regulatory framework and business demands. In September 2021, Japan acquired PEPPOL Authority status and aims to allow businesses to issue and receive electronic invoices through PEPPOL in the Autumn of 2022.

Kyoto, Japan springtime in the historic Higashiyama district art dawn.

Japan's tax system quick facts

  • Under the new system, only registered JCT payers can issue qualified tax invoices. On the buyer side, taxpayers will only be eligible to input tax credit where a qualified invoice has been issued
  • Taxpayers must register with Japan’s National Tax Agency (NTA) to issue qualified invoices. Registration began in October 2021 and must be completed before 31 March 2023
  • Invoices must be archived according to Italian-style storage requirements: to be compliant, taxpayers must either timestamp their invoices or draw up a Storage and Maintenance Guideline describing how the invoices are archived and how this meets applicable requirements
  • Invoices should be stored in such a way to guarantee the integrity, authenticity and availability during the storage period
  • Foreign storage is allowed provided it fulfills the requirement for storage under Japanese law
  • Outsourcing of invoice issuance is allowed with no restrictions or requirements

Japan's mandate rollout dates

  • 1 October 2019 – Japan introduces its multiple tax rate system
  • 14 September 2021 – the Japanese Digital Agency obtained PEPPOL Authority status
  • 1 October 2022 –EIPA aims to enable businesses in Japan to issue and receive electronic invoices through PEPPOL
  • 31 March 2023 – Latest date to apply for registration with the NTA to issue qualified invoices
  • 1 October 2023 – Qualified Invoice System will be introduced

Quick facts about Japan's Consumption Tax

Introduced in January 1989, it’s the indirect tax charged on the consumption of goods and services in Japan. There are national and regional levies, and a reduced rate of Consumption Tax in Japan.

Japan’s Consumption Tax is the equivalent of VAT which is charged across the European Union.

Consumption Tax in Japan is levied when a business transfers goods, provides services or imports goods into Japan.

A refund of Consumption Tax in Japan isn’t possible for businesses without taxable sales in the country.

How Sovos can help

As Japan implements its Consumption Tax System updates, requirements for Japanese taxpayers will change. Need help ensuring your business stays compliant with all future Japanese Consumption Tax system updates?

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

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Serbia E-invoicing

Aligning with other Eastern European countries such as Poland and Romania, Serbia has forged a path towards mandating e-invoicing for B2B and B2G transactions.

This page has the updates you need to learn about Serbia’s electronic invoicing journey. Be sure to bookmark it to stay informed as rules and regulations change.

Table of contents

1. B2B e-invoicing in Serbia

2. B2G e-invoicing in Serbia

3. Timeline of e-invoicing adoption

4. Setting up e-invoicing in Serbia with Sovos

5. FAQ

6. Additional resources

B2B e-invoicing in Serbia

In Serbia, it has been mandatory to issue and receive electronic invoices for B2B transactions since 1 January 2023.

On the same date, select taxpayers became obliged to report their VAT to the Serbian tax authorities via the national e-invoicing system, Sistem eFaktura (SEF).

E-invoices must be in the UBL 2.1 format and securely stored for 10 years.

B2G e-invoicing in Serbia

Since 1 May 2022, all suppliers to the Serbian public sector must send invoices electronically, and from 1 July 2022, the Serbian public sector must send e-invoices to companies.

As a result, B2G and G2B transactions have been under an e-invoicing mandate since 2022.

Electronic invoices issued or received by a public entity, such as a government agency, are permanently stored in the Serbian electronic invoicing system (SEF).

Timeline of e-invoicing adoption

  • May 2021: Law on Electronic Invoicing came into force, introducing the SEF CTC platform
  • 1 May 2022: All suppliers in the public sector must send invoices electronically, and the Serbian government must be able to receive and store them
  • 1 July 2022: Serbian public entities are obliged to send e-invoices to companies
  • 1 January 2023: E-invoicing is mandated for B2B transactions
  • 28 November 2024: Law on Electronic Invoicing is amended to include changes to electronic recording of VAT, tax returns and penalties

Setting up e-invoicing in Serbia with Sovos

Compliance can be resource-heavy.

Consider the numerous mandates across every country you operate in, as well as the fact that these regulations change over time, and it becomes clear that it takes a lot of time, energy and headspace to stay compliant.

If you operate in Serbia and want to ensure you are on the right side of the rules, speak with Sovos. We can serve as your sole tax and e-invoicing compliance partner, freeing you up to focus on what truly matters.

Get in touch with us

FAQ

Yes, both companies and public sector entities must issue and receive e-invoices.

No, B2C transactions are currently excluded from mandatory e-invoicing; however, plans are in place to integrate the current eFiscalization system with SEF.  

Additional resources

E-invoicing Guide

Your best starting point to learn about the global rise of e-invoicing.
Read here

VAT Digitization in Eastern Europe

An eBook detailing the digital transformation of tax across Eastern Europe.
Learn more

Indonesia E-invoicing

Indonesia made e-invoicing mandatory for all VAT-registered taxpayers on 1 July 2016, expanding upon its initial e-Faktur rollout in Bali and Java from 1 July 2015.

With its own official e-invoicing system and mandate, Indonesia has plenty for taxpayers to learn and comply with. This page is the ideal starting point for understanding Indonesia e-invoicing.

Table of contents

1. E-invoicing requirements in Indonesia

2. Timeline of e-invoicing adoption in Indonesia

3. Penalties: What happens if I don’t comply with e-invoicing in Indonesia?

4. Setting up e-invoicing in Indonesia with Sovos

5. FAQ

6. Additional resources

E-invoicing requirements in Indonesia

After experiencing challenges in its tax control system, Indonesia adopted an e invoicing system locally known as e Faktur Pajak. Leveraging data reported in real-time via continuous transaction controls (CTCs) allows the Indonesian tax authorities to reduce occurrences of fraud whilst helping to close the tax gap.

Introduced in 2014 and effective from 2016, Indonesia’s e invoicing system seeks to combat the tax gap. Indonesia’s solution was the implementation of an invoice clearance system, where invoices must be approved by the local tax authority prior to being sent to a customer.

E-invoicing is mandatory for all corporate VAT taxpayers. It’s compulsory for all invoices to be processed and issued electronically through the government’s official system, eFaktur.

Also known as tax invoices, e-invoices in Indonesia are typically issued for:

  • Delivery of taxable goods (Barang Kena Pajak)
  • Rendering of taxable services (Jasa Kena Pajak)
  • Advance payment of taxable goods or services

eFaktur e-invoices should be created by applications approved by Indonesia’s Director of Taxation (DGT). Options include client desktop, web-based and host-to-host applications. Electronic invoices need to be secured using an electronic signature, and taxpayers need electronic certificates to verify their identity—the latter need to be renewed every two years. Validated invoices receive a QR code from the DGT as proof of authenticity.

It’s worth noting that the VAT return submission has been integrated with eFaktur, and VAT returns are typically required to be submitted monthly via the platform.

Timeline of e-invoicing adoption in Indonesia

Indonesia’s e-invoicing journey has plenty of key moments:

  • 1 July 2014: e-Faktur is introduced
  • 1 July 2015: e-Faktur becomes mandatory for VAT-registered taxpayers in Bali and Java
  • 1 July 2016: e-Faktur Pajak became effective for all VAT-registered taxpayers based in the country
  • 1 October 2020: New e-Faktur Pajak version 3.0 released
  • 31 July 2024: The development of a Core Tax System (PSIAP) is announced to automate and digitise tax administration services

Penalties: What happens if I don’t comply with e-invoicing in Indonesia?

Indonesia penalises taxpayers who fail to meet their compliance obligations. For example, if a tax invoice is not issued (or is issued late or invalid), the taxpayer will be fined 1% of the VAT base.

FAQ

All VAT-registered businesses in Indonesia must send and receive e-invoices via the e-Faktur platform. They must submit invoices for validation before sending to the buyer.

Issuing e-invoices has been mandatory for corporate taxpayers since 1 July 2016.

No, only validated e-Faktur invoices issued via the DGT platform are legally recognised for tax purposes.

Yes, the e-Faktur system is integrated with VAT reporting. The introduction of e-faktur v3.0 in October 2020 enabled the auto-population of VAT returns for taxpayers in the scope of the local e-invoicing mandate.

Setting up e-invoicing in Indonesia with Sovos

E-invoicing is a global trend, though your requirements differ by country. Indonesia is far into its e-invoicing journey, while some countries have yet to even announce any official plans.

Doing business internationally is tough, especially when you add compliance to the mix. Working with Sovos means choosing a single vendor to handle tax compliance, wherever you operate.

Let us take care of your compliance burden so you can continue to focus on growing your business.

Get in touch with us

Additional resources

Indonesia VAT

Find out more about tax compliance in Indonesia.
Learn more

Asia Pacific E-invoicing

Learn about e-invoicing across the Asia Pacific region.
Read here

E-invoicing Guide

Your ultimate one-stop shop for electronic invoicing.
Learn more

Israel e-invoicing

Israel is set to implement a continuous transaction controls (CTC) model that will require businesses to submit invoice data in electronic format for the tax authority to validate.

The mandate, set to come into force in May 2024, will require invoice data to be validated by the country’s tax authority before being sent to the final recipient. Read on for an overview of Israel e-invoicing requirements – we encourage you to bookmark the page to stay updated as the mandate develops.

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Table of contents

1. At a glance: Characteristics of invoicing data submission in Israel

2. Electronic invoicing laws in Israel

3. Benefits of using e-invoicing in Israel

4. Timeline of e-invoicing clearance in Israel

5. What is the future of e-invoicing in Israel?

6. What happens if I don’t comply?

7. Setting up e-invoicing in Israel with Sovos

8. FAQ

9. Additional resources

At a glance: Characteristics of invoicing data submission in Israel

CTC Type 
CTC Clearance

Format 
JSON

Allocation Number 
Assigned by the ITA

 

E-invoicing 
Not mandatory

Electronic Signature 
Not applicable (though needed in case of e-invoicing)

Archiving 
Not applicable

Electronic invoicing laws in Israel

From 5 May 2024, Israel will make clearance CTC clearance mandatory. Authorised dealers (taxpayers) will have to clear invoices above a threshold of NIS 25,000 (before VAT), obtaining an allocation number acquired by the SHAAM – a computer system provided by the Israeli Tax Authority (ITA).

The invoice value threshold will be gradually reduced annually until 2028, ending at NIS 5,000 pre-VAT. Nevertheless, suppliers may report invoice data to the tax authority for clearance and request an allocation number for any amount.

Besides CTC clearance, e-invoicing rules remain in place and do not change with the new CTC requirements. Electronic invoices are still optional.

Since 2019, public entities in Poland have been mandated to receive and process e-invoices. While currently optional for suppliers of public entities, the transmission of e-invoices will be required for B2G and B2B transactions when the mandate is implemented (this was planned for 1 July 2024 until it was postponed in January 2024).

CTC clearance model

Israel’s model will include a clearance system from 5 May 2024. Businesses that exceed a specific threshold will be required to obtain an allocation number for invoices regarding B2B transactions. They can do so by issuing the invoice to the tax authority before sending it to the final customer.

Without receiving this number and including it on invoices, businesses will not be able to deduct input VAT.

Israel B2B e-invoicing

Israeli CTC clearance covers B2B transactions between authorised dealers.

However, e-invoicing is not mandatory under the new CTC clearance system. In case invoices are issued in electronic format (structured or unstructured format, including PDF), they must be cleared by the ITA and assigned with an allocation number before exchanged with the trading party.

Without receiving this number and including it on invoices, businesses will not be able to deduct input VAT.

Benefits of using e-invoicing in Israel

Although CTC Clearance mandate does not require e-invoicing, there are numerous benefits for businesses that electronically issue and receive invoices, including:

  • Cost savings through the reduction of paper, postage and manual labour
  • Saving time by using automated and structured processes
  • Streamlining operations through interoperable, uniformed initiatives and systems
  • Fewer issues and risks through the validation and authentication of data

Timeline of e-invoicing clearance in Israel

While combating fraudulent invoices has been discussed in Israel for a long time, the implementation of the upcoming CTC model is a relatively recent development.

  • February 2023: The 2023-2024 state budget and economic plan are approved, outlining a clearance CTC model
  • June 2023: The ITA announces plan for CTC implementation
  • July 2023: The ITA publishes technical specifications for the upcoming CTC model
  • October 2023: Clearance model is postponed from 1 January 2024
  • 1 January 2024: The original date that the clearance e-invoicing model would be implemented
  • 1 January 2024: The ITA platform becomes operational
  • 5 May 2024: CTC clearance comes into effect
  • January 2025: Invoice threshold lowers to NIS 20,000 pre-VAT
  • January 2026: Invoice threshold lowers to NIS 15,000 pre-VAT
  • January 2027: Invoice threshold lowers to NIS 10,000 pre-VAT
  • January 2028: Invoice threshold lowers to NIS 5,000 pre-VAT

What is the future of e-invoicing in Israel?

While electronic invoice data will be required as part of the CTC initiative, Israel does not yet have a specific electronic invoicing mandate requiring dealers to issue invoices electronically.

Currently, Israel’s e-invoicing rules – which are classified as post-audit – include e-signing, content remarks and prior notification to the tax authority.

Israel has the potential to go the way of countries like Romania and Spain, mandating the use of e-invoices across transactions with governments and businesses. There is no official word on Israel’s future e-invoicing plans beyond the current CTC mandate.

What happens if I don’t comply?

If an allocation number is not requested for the invoice by the supplier, the buyer cannot deduct its VAT based on that invoice.

Setting up e-invoicing in Israel with Sovos

Sovos’ continuous transaction controls (CTC) software was purpose-built to help customers stay on top of their obligations wherever they do business, even as the rules change.

Currently, e-invoicing is permitted in Israel, provided it is prominently stated on the invoice that it is a ‘computerized document’ and prior notification is made to the ITA. A digital signature compliant with the local law is required to ensure the integrity and authenticity of the electronic invoice.

Storage of e-invoices must be within Israel – unless derogation has been granted. Both issuance and storage of e-invoices can be outsourced to third parties like Sovos.

Taxpayers opting to use e-invoices must comply with the abovementioned rules, as well as the CTC clearance requirements rolling out in 2024.

As CTCs and e-invoicing continue to grow in global adoption, it is vital to partner with a provider that closely monitors the decisions of tax administrations and understands the regulations you face. Sovos can help to stay compliant wherever you do business. Get in touch today.

Get in touch with us

Israel CTC Clearance and E-invoicing FAQ

No, e-invoicing is not mandatory in Israel. Israel’s continuous transaction controls (CTC) mandate involves the electronic submission of invoice data and is set to come into effect on 5 May 2024.

Electronic invoice data must include specific information when submitted to the tax authority, including invoice ID, VAT number, invoice date, invoice amount and accounting software number. They also need to be given an allocation number by the ITA for the buyer to use this invoice for a tax deduction, as per the CTC clearance mandate.

Sovos has the first global solution for e-invoicing compliance, including e-reporting functionality.

Within the CTC mandate, the use of emergency allocation numbers is instituted as a contingency measure to address potential failures in its computer systems. In anticipation of such events, taxpayers must acquire and store these emergency numbers.

In case the taxpayer chooses e-invoicing, electronic invoices in Israel must be signed with a digital signature compliant with the local law.

Israel’s mandated CTC clearance platform requires electronic invoice data to be submitted to and approved by the Israeli Tax Authority in real time. The authority will assign an allocation number and verify or reject the invoice data. Once validated, the allocation number will be returned to the seller so it can be issued to the buyer (in electronic or paper format).

Additional resources for e-invoicing compliance

E-Invoicing: A Guide

Use this guide about e-invoicing in Europe to learn more about e-invoicing compliance in general.
Read now

Israel Continuous Transaction Controls (CTCs)

Israel steps closer to introducing a continuous transaction control (CTC) model in its tax system.
Learn the latest

Continuous Transaction Controls Software

Discover how continuous transaction control software can help businesses remain compliant with global tax requirements
Learn more

Lithuania’s VAT Requirements

Lithuania’s SAF-T Standards Framework

Seeking to modernise and digitize its tax systems, the Lithuanian Customs Office of the State Tax Inspectorate announced sweeping changes to its tax system in 2016 with the introduction of the Standard Audit File for Tax (SAF‑T) and the launch of its online portal, eSaskaita.

Have questions? Get in touch with a Sovos Lithuania SAF-T Standards expert.

SAF-T Standards reforms

Implemented with a phased approach, Lithuania’s SAF‑T mandate became mandatory for all taxpayers in 2020. Whilst there is no periodic SAF‑T reporting, businesses must maintain records for the tax authorities in the event they are requested.

Quick facts on SAF-T Standards

  • E-invoices must be accepted provided its integrity and authenticity can be guaranteed from the point of issuance until the end of the storage period.
  • If an invoice is in electronic form, data ensuring its integrity and authenticity must be stored by electronic means.
  • Suppliers may submit documentation by:
    • Using any certified PEPPOL Access Point with an AS4 Profile
    • Manually keying in the invoice information via an online portal
    • Uploading files in XML format (this requires the economic operator’s accounting system to be suitable for storing e-invoices in this format).
SAF-T Standards
SAF-T Standards
  • Service providers to Lithuanian taxable persons not established in an EU Member State must comply with certain additional requirements regarding the outsourcing of e-invoice issuance.
  • The i.MAS, Lithuania’s “Intelligent Tax Administration System,” comprises three main parts:
    • i.SAF reporting of sales and purchase invoices on a monthly basis
    • i.VAZ reporting of transport/consignment documents
    • i.SAF-T accounting transaction report, which is only required when requested by the tax authority.
  • Full SAF-T files are only submitted upon request of the Lithuanian tax authority.

SAF-T mandate rollout dates

  • 1 Oct 2016 – Requirement to submit data on issued and received VAT invoices began
  • 2016 -2019 – Phased rollout of SAF‑T requirements to Lithuanian businesses dependant on revenue
  • Jan 2020 – All businesses required to comply with SAF‑T mandate
  • 2021 – Management and archiving of documents, including invoices, became a licensed activity and must meet certain requirements for integrity, authenticity, security and management to be certified by the Lithuanian Chief Archivist
SAF-T Standards
INFOGRAPHIC

Lithuania’s SAF-T Requirements

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

Learn more

How can Sovos help with SAF-T and VAT compliance?

Need help to ensure your business stays compliant with the SAF‑T obligations in Lithuania?

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

Learn how Sovos’ solution for Lithuanian SAF‑T and other VAT compliance changes can help companies stay compliant.

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Thailand’s New Approach to Electronic Invoicing

New regulations for e-tax invoicing and receipts expected soon.

Thailand’s current e-invoicing legal framework has been in effect since 2012 and follows a post-audit approach.

The Thai Revenue Department and Electronic Transactions Development Agency (ETDA) are working together to improve and further develop the e-tax invoicing system. As a result, new regulations on e-tax invoicing and receipts are expected in the future.

Get in touch with a Sovos Thailand e invoicing expert.

E-tax and electric invoicing solutions

From 2017, the Thai Revenue Department issued regulations on electronic tax invoices and receipts. Subject to approval, taxpayers can prepare, deliver and keep their e-tax invoices and receipts in electronic format. Read more about e-tax in Thailand here.

Quick facts on electronic invoicing

  • E-invoices must be digitally signed using a certificate issued by a certification authority and approved by the Thai Revenue Department.
  • E-invoices must be submitted in XML format to the Revenue Department monthly.
  • Outsourcing of e-invoice issuance is allowed provided the third-party service provider is certified by the Thai Revenue Department.

E-tax invoicing rollout dates

  • 2012 – E-invoicing permitted
  • 2017 – New regulations issued on electronic e-tax and receipts.
  • 2020 – EDTA began a certification process for service providers to assess whether applicants’ solutions are secure and compliant.

How can Sovos help with invoicing solutions?​

Need help to ensure your business stays compliant with emerging e-invoicing obligations?

Our experts continually monitor, interpret and codify legal changes and requirements into our software solutions, taking care of your indirect tax compliance so you can focus on your core business.

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

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Luxembourg VAT Requirements

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.

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Slovakia E-invoicing

The modernisation 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 aligned with ViDA to improve the fight against tax evasion and obtain real-time information about underlying business transactions.

Plenty is happening in Slovakia where e-invoicing is concerned, and this page is your ideal overview of the country’s journey towards obligatory electronic invoicing.

Table of contents

1. B2B e-invoicing in Slovakia

2. B2G e-invoicing in Slovakia

3. The use of Peppol in Slovakia

4. Timeline of e-invoicing adoption in Slovakia

5. Setting up e-invoicing in Slovakia with Sovos

6. FAQ

7. Additional resources

B2B e-invoicing in Slovakia

Slovakia has proposed to implement mandatory e-invoicing for B2B transactions from 2027.

The proposal would require taxpayers to issue and receive electronic invoices for domestic, business-to-business transactions. This mandate would use Peppol—the pan-European e-invoicing initiative used by many countries—to facilitate the exchange of e-invoices.

The idea behind implementing Peppol is to enable multiple certified e-invoicing providers to participate, creating a decentralised system.

In addition to mandating the exchange of electronic invoices, the proposal includes real-time reporting of invoice data to the country’s financial administration.

B2G e-invoicing in Slovakia

Slovakia currently requires central, regional and local authorities to be able to receive and process electronic invoices. This has been enforced since 1 August 2019.

E-invoicing is still not fully implemented for business-to-government transactions. However, it is expected that the new CTC regime will cover both B2B and B2G e-invoices.

The use of Peppol in Slovakia

Slovakia’s Financial Administration plans to introduce a mandate for B2B e-invoicing, utilising Peppol’s infrastructure and framework to facilitate document transmission.

The plan of having a decentralised e-invoicing system would allow businesses to exchange e-invoices uniformly and securely and therefore improving operational efficiency.

Also, by joining the Peppol network, the government would allow businesses currently offering e-invoicing solutions in the Slovakia to become Peppol-certified providers, fostering healthy market competition. Slovakia’s Financial Administration will serve as the nation’s Peppol Authority.

Timeline of e-invoicing adoption in Slovakia

Here are the key dates in Slovakia’s journey towards adopting e-invoicing:

  • 19 December 2024: The Ministry of Finance unveils a proposal regarding mandatory e-invoicing and real-time reporting of invoice data to the Financial Administration
  • 1 January 2027: The proposed date of the country’s B2B e-invoicing mandate
  • 1 January 2027: The proposed date of the country’s requirement to report domestic transactions to the tax authorities in real time
  • 1 July, 2030: Slovakian VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions.

Setting up e-invoicing in Slovakia with Sovos

With Slovakia well on its way to introducing mandates for e-invoicing, it’s important to be ahead of the curve to ensure compliance. However, an evolving e-invoicing landscape isn’t unique to Slovakia.

Chances are that most countries you do business in are undergoing a similar digital transformation. Sovos is a single solutions supplier to ensure your organisation complies with its tax obligations – everywhere you operate.

Choosing Sovos means choosing peace of mind and reclaiming your time.

Get in touch with us

FAQ

It is only mandatory for central, regional and local authorities to be able to receive and process e-invoices. Outside of that, Slovakia has no mandate in place for electronic invoicing.

Slovakia is expected to introduce mandatory e-invoicing combined with real-time reporting of invoices to the tax authority.

Currently, the use of Peppol to exchange e-invoices is not mandatory. However, according to the upcoming CTC reform, the Peppol network is planned to be mandatory for the exchange of e-invoices between businesses.

Additional resources

IPT in Slovakia

Ensure you’re aware of all your tax obligations with this blog.
Read here

E-invoicing Guide

Learn about the global rise of electronic invoicing.
Read here

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.

Contact Us Today

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