North America

Philippines VAT Requirements

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

In addition to periodic VAT filing obligations, the Philippines has launched a Continuous Transaction Controls (CTC) e-reporting pilot program to improve VAT collection. It is also expected to roll out a phased expansion of this VAT control reform to the rest of the economy soon.

This page is your ideal overview for VAT compliance in the Philippines.

Table of contents

1. General VAT information for the Philippines

2. VAT rules in the Philippines

3. Requirements to register for VAT in the Philippines

4. Penalties for non-compliance with VAT in the Philippines

5. Solutions for VAT compliance in the Philippines

6. FAQ

7. Additional resources

General VAT information for the Philippines

Periodic VAT return Monthly: 20th day of the month following the end of the tax period Quarterly: 25th day following the close of each taxable quarter
VAT rates 12% 0% and Exempt

VAT rules in the Philippines

In the Philippines, VAT filings are due monthly or quarterly.

When filing monthly, submissions must be made no later than the 20th day following the end of the taxable month. When filing quarterly, submissions must be made no later than the 25th day following the end of the taxable quarter, aligned with the taxpayer’s income tax quarter.

Requirements to register for VAT in the Philippines

There are several qualifying factors for taxpayers who must register for VAT in the Philippines. These conditions include:

  • Organisations or individuals involved in selling, leasing, exchanging goods or properties and rendering services (if gross sales amount to 3,000,000 PHP)
  • Organisations or individuals who voluntarily register
  • Organisations or individuals that import goods

Penalties for non-compliance with VAT in the Philippines

If you fail to meet your tax obligations in the Philippines, you may be fined 1,000 PHP per instance of failure. However, this can be avoided if the failure is proven to have been caused by reasonable cause and not by neglect.

Taxpayers cannot be charged more than 25,000 PHP in tax-related fines in a year. However, additional penalties, such as surcharges and interest, may also apply depending on the nature of the non-compliance.

Solutions for VAT compliance in the Philippines

Meeting tax obligations in the Philippines may seem complicated, but it doesn’t have to be. Choose Sovos as your compliance partner to save time and gain peace of mind that your requirements are being met.

Sovos combines solutions with regulatory expertise, serving as an extension of your team to make sure you are compliant – not just now, but in the future too. Get in touch today to get started.

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FAQ

Yes, the Philippines levies Valued Added Tax on goods and services. The standard tax rate is 12%.

Valued Added Taxis calculated on the gross selling price of goods or gross receipts from the sale of services.

Tourists or non-resident passport holders can apply to reclaim VAT in the Philippines on goods bought from an accredited store, if goods are taken out of the country within 60 days of purchase, and goods purchased worth at least 3,000 PHP.

Additional resources

Philippines’ CTC System

Learn about the nation’s e-invoicing system.
Read here

Asia Pacific E-invoicing

Stay on top of tax rules across Asia.
Learn more

China E-Invoicing

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

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

Table of contents

1. China e-invoicing requirements

2. Format of electronic invoices in China

3. Timeline of e-invoicing adoption in China

4. FAQ

5. Additional resources

China e-invoicing requirements

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

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

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

Format of electronic invoices in China

Electronic invoices take different forms in China. The document is automatically sent to the State Taxation Administration in XML format, and it is returned to the invoice issuer in either PDF or OFD format.

All e-invoices must include a QR code and an electronic signature, buyer and seller information, an invoice number and issuance date, details for the goods or services provided and financial information (unit price, tax rate & amount, etc).

FAQ

Yes, China began its pilot program for electronic invoicing in September 2020 – specifically for B2B transactions in Ningbo, Shijiazhuang and Hangzhou.

Electronic invoicing is not currently mandatory in China, though it is widely accepted by organisations nationwide.

China’s electronic invoicing dictates that these documents must be securely archived for 30 years from their issuance.

Timeline of e-invoicing adoption in China

Learn more about China’s journey to adopting electronic invoicing with the key dates below.

  • September 2020: China’s e-invoicing pilot program began allowing e-invoice issuance for B2B purposes. It initially only included Ningbo, Shijiazhuang and Hangzhou
  • December 2020: Pilot expanded to include Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Guangdong, Chongqing, Sichuan and Shenzhen
  • January 2021: Pilot further expanded to include Beijing, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Fujian, Jiangxi, Shandong, Henan, Hunan, Guangxi, Hainan Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Dalian, Xiamen and Qingdao
  • December 2021: A new pilot program, only for selected taxpayers, started in Shanghai, Inner Mongolia and Guangdong, introducing the so-called “fully digitised e-invoice”, a new type of e-invoice that simplifies the e-invoice issuance for both B2B and B2C purposes
  • December 2024: The State Taxation Administration officially recognises e-invoices with the same legal weight as paper invoices

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Additional resources

Asia Pacific E-invoicing

This blog delves into e-invoicing across the Asia Pacific
Learn more

E-invoicing Guide

Learn more about the current state of electronic invoicing
Read more

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

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

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

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

Tax in Romania: Romania’s SAF-T reforms

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

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

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

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

Romania SAF-T quick facts

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

Continuous transactions control (CTC) reforms

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

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

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

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

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

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

Romania CTC quick facts

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

Mandate rollout dates for SAF-T and CTCs

Romania SAF-T

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

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

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

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

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

Romania CTC

March 2020: Pilot program launched.

November 2021: Voluntary participation of B2G scheme.

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

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

2023: Mandate expansion to other B2B flows expected.

Infographic

Romania’s SAF-T Requirements

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

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Infographic

Romania CTC Requirements

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

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How can Sovos help?

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

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

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Saudi Arabia - E-Invoicing

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

Saudi Arabia e-invoicing from December 2021

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

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

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

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Mandate quick facts

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

  • Applies to all resident taxable persons in Saudi Arabia.
  • Requires taxpayers to generate, amend and store e-invoices and electronic notes (credit and debit notes) across B2B, B2C and B2G transactions, including exports.
  • Businesses must generate e-invoices and their associated notes in a structured electronic format.
  • Electronic invoices and notes must contain all necessary information.
  • Any structured electronic format permitted.
  • B2C invoices must include a QR code.
  • All invoices must contain a time stamp.
  • Integrity of e-invoices is explicitly required.

  • Storage requirements same in both Phases 1 and 2. Documents can be stored on Cloud, a direct link to the online data must be available. In case the storage is outsourced, documents must be kept by a third party established within the territory of Saudi Arabia.

  • Suppliers must store e-invoices in a structured format regardless of how they’re exchanged with buyers.

  • Certain prohibited functionalities for e-invoicing solutions.

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

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

Important dates for e-invoicing in Saudi Arabia

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

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

Infographic

Saudi Arabia CTC Requirements

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

Learn More

How Sovos can help

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

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The VAT Import One Stop Shop (IOSS)

Simplify EU VAT with IOSS in one single return

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

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

Speak to a VAT and IOSS expert

What is IOSS?

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

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

Full IOSS VAT service

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

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We act as your IOSS VAT Intermediary

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

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What are the benefits of IOSS VAT?

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

Quick Facts IOSS VAT

  • The IOSS simplification is available to use now for any qualifying transactions 
  • The scheme requires additional record-keeping: businesses must retain more detailed records of transactions than previously
  • IOSS VAT declarations are monthly  
  • Businesses can correct previous IOSS VAT returns in the next one
  • Non-EU businesses may need to appoint an intermediary and obtain an IOSS VAT registration in the intermediary’s country of establishment in the EU
  • Depending on the nature of business activity/supply chains, non-EU retailers may need to report under the Union One Stop Shop (OSS) and non-Union OSS schemes. 
  • Businesses need at least one ‘standard’ VAT registration and possibly more due to warehouses or similar if they are to use Union OSS.  No other VAT registrations is needed for IOSS or non-Union OSS.

Penalties and Fines IOSS VAT

Local tax authorities can issue penalties and fines to businesses if returns and payments are not submitted on time. In addition, repeated noncompliance can lead to a two-year exclusion from the scheme. Businesses would then need to register for VAT in all Member States where they import goods or have alternative arrangements in place to deal with the import VAT. 
 
Businesses that want to use IOSS may require an intermediary. If an intermediary is required you can’t do it alone. Our comprehensive service handles all your registration, filing and intermediary requirements.  

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

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

Contact us to speak to a VAT expert and learn how to get started. 

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Portugal’s VAT Regime

Portugal pushes further ahead with VAT digitization

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

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

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Quick facts

  • Use of certified billing software is mandatory for the creation of all types of invoices (paper or electronic); this is understood to be the taxpayer’s ERP system. Since 2021, non-resident companies with a Portuguese VAT registration have also been obligated to issue invoices and other fiscally relevant documents via certified billing software.
  • A QR code should be included in all invoices issued through certified billing software. Technical specifications about the content and placement of the code in the invoice are available on the tax authority’s website.
  • A unique ID number (ATCUD) must be included in all invoices and fiscally relevant documents. The ATCUD is a number with the following format ‘ATCUD:Validation Code-Sequential number’.
  • Public entities must receive e-invoices whilst companies must send e-invoices since 1 July 2021. E-invoices must be issued electronically in the CIUS-PT format and transmitted to the public administration through one of the available web services.
  • A qualified electronic signature or seal, or the use of EDI with contracted security measures is mandatory for all electronic invoices from 1 January 2026.
  • Billing SAF-T has monthly submission requirements and must be completed with the normal VAT return by the 5th (until the 8th during the year of 2023 due to a grace period) day of the month following the reporting period. The Billing SAF-T may be submitted via the e-fatura portal or through web services.
  • Accounting SAF-T: annual submission is mandatory from 2027 via the tax authority´s portal which will enable automatic pre-filling of the VAT IES´ Annexes.

Important dates

  • 1 July 2021: Non-resident taxpayers required to use a certified billing software to issue invoices and other fiscally relevant documents.
  • Issuance of B2G e-invoices:
  • 1 January 2021: Phased rollout of mandatory issuance of e-invoices in the CIUS-PT format for large suppliers of the public administration.
  • 1 January 2022: QR code requirement implemented for invoices and other fiscally relevant documents issued through a certified billing software.
  • 1 January 2023: Unique ID number (ATCUD) is mandatory on all paper and electronic invoices.
  • 1 January 2023: Non-resident taxpayers required to submit Billing SAF-T monthly.
  • 2026 fiscal year: Mandatory annual submission of accounting SAF-T for residents and non-residents (first submission occurs in 2027 regarding the fiscal year of 2026)
  • 1 January 2026: Mandatory B2G E-invoicing extended to include small and medium-sized businesses.
  • 1 January 2026: Qualified electronic signature/seal or EDI mandatory for electronic invoices.

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

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

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

Simplifying cross-border B2C trade in the EU

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

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

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

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

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

Why should you partner with Sovos?

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

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

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

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

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

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

Quick Facts

  • If a business decides to use the OSS simplification, then they must apply it to all qualifying transactions.

  • Additional record-keeping is required for OSS: Businesses using any of the OSS reporting schemes must retain more detailed records of transactions than previously. This additional data may be requested by tax authorities and used in audits to check VAT has been applied appropriately.

  • Declarations for Union and non-Union OSS are quarterly. The submission deadline will change to the last day of the month following the return period. Declarations under IOSS are monthly.

  • Businesses can correct previous OSS returns in the next OSS return. This is instead of correcting the original submitted OSS return.

  • Businesses established in the EU may only register for OSS in the Member State of establishment.

  • Non-EU businesses may need to appoint an intermediary and obtain an IOSS VAT registration in the intermediary’s country of establishment in the EU.

  • Non-Union OSS registrations can be in any chosen Member State. If already registered under MOSS, existing registration will continue.

  • Depending on the nature of business activity/supply chains, non-EU retailers may need to report under all three schemes. They will also need at least one ‘standard’ VAT registration and possibly more due to warehouses or similar.

  • EU businesses may have to report under OSS and IOSS as well as local registrations.

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

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

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

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

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South Korea E-invoicing

South Korea was one of the first countries to adopt e-invoicing, introducing e-Tax, its Electronic Tax Invoice System, in 2010. E-invoicing in South Korea has been mandatory for all corporations since 2011, and the scope of the mandate has expanded over time.

Bookmark this page to stay up to date with the latest requirements.

Table of contents

1. South Korea e-invoicing requirements

2. Format of electronic tax invoices in South Korea

3. Timeline of e-invoicing adoption in South Korea

4. How Sovos helps with South Korea e-invoicing requirements

5. FAQ

6. Additional resources

South Korea e-invoicing requirements

South Korea’s e-invoicing system consists of two processes: e-invoice issuance and e-invoice transmission. The combination of e-invoice and real-time reporting mandates is relatively unique to South Korea.

Taxpayers must issue e-invoices and exchange with counterparties via email. Following the exchange, e-invoices need to be reported to the National Tax Service (NTS).

South Korea’s NTS requires transmission of e-tax invoices to the government portal within one day of an invoice being issued.

E-invoices must also be issued to the recipient of goods or service subject to VAT via email. Invoices and amended invoices, including credit and debit notes are in scope of the requirements. Currently, e-invoicing in South Korea applies to domestic transactions only.

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

Format of electronic tax invoices in South Korea

Network

NTS Central Platform

Format

XML

eSignature Requirement

E-invoices should be signed using the supplier’s digital signature certificate; only certain types of certificates can be used for this purpose. Taxpayers can use either a certificate issued by the Public Certification Authority or an e-tax certificate issued by the NTS.

Archiving Requirement

Suppliers are required to store invoices for five years, but since e-invoices are stored in the NTS system and accessible to both suppliers and buyers, they are released from this obligation. However, it is recommended to keep copies in case of issues with the NTS system or fiscal disputes with tax authorities.

Timeline of e-invoicing adoption in South Korea

  • January 2011:Electronic issuance of VAT invoices and next day reporting becomes mandatory for all South Korean corporate taxpayers
  • January 2012:Mandate now includes entrepreneurs with a supply value of 1 billion KRW and above
  • July 2014:Threshold for entrepreneurs reduces from 1 billion KRW to 0.3 billion KRW and above
  • July 2019:Inclusion of tax-free portion of income when calculating the 0.3 billion KRW entrepreneur threshold
  • July 2022:Entrepreneur threshold adjusts from 0.3 billion KRW to 0.2 billon KRW and above
  • July 2023:Introduction of self-billing invoices and further entrepreneur threshold reduction from 0.2 billion KRW to 0.1 billon KRW and above
  • July 2024: The threshold for entrepreneurs to issue e-invoices has been lowered from 0.1 billon KRW to 80 million KRW and above

How Sovos helps with e-invoicing requirements in South Korea

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

Sovos can be your single-vendor tax compliance partner, helping you handle e-invoicing and related VAT obligations in South Korea and wherever else you do business.

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FAQ

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

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

VAT is charged on all supplies of goods and services, with some exemptions and zero-rated supplies of goods and services.

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

Additional resources

E-invoicing Guide

Everything you need to know about the basics of e-invoicing.
Read here

South Korea self-billing invoices

Learn about South Korea’s VAT requirements.
Find out more

Making Tax Digital: All You Need to Know

What is Making Tax Digital?

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

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

Understanding MTD

The UK government introduced Making Tax Digital (MTD) with the aim of making filing VAT returns easier and more efficient for businesses

The regulation requires businesses to keep digital records and submit VAT returns via compatible software.

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

MTD doesn’t currently apply for corporation tax, but HMRC published the results of its consultation – and there are plans for a pilot scheme. A potential mandate is likely in 2026. Bookmark this page to stay on top of future updates to the regulation.

Get the information you need

Table of Contents

  1. What is Making Tax Digital?
  2. Quick facts about MTD
  3. Making Tax Digital implementation dates
  4. Penalties for non-compliance
  5. MTD digital links
  6. FAQ
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What is Making Tax Digital?

The UK government introduced Making Tax Digital (MTD) with the aim of making filing VAT returns easier and more efficient for businesses

The regulation requires businesses to keep digital records and submit VAT returns via compatible software.

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

MTD doesn’t currently apply for corporation tax, but HMRC published the results of its consultation – and there are plans for a pilot scheme. A potential mandate is likely in 2026. Bookmark this page to stay on top of future updates to the regulation.

Making Tax Digital (MTD): Quick facts

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

Making Tax Digital (MTD): Roll out dates

  • 1 April 2019: MTD for VAT introduced to UK VAT registered businesses exceeding annual gross sales of £85,000.
  • 1 October 2019: MTD applies for businesses eligible for deferral.
  • 1 April 2021: The ‘soft landing’ for digital links ended. Starting with that tax period, all MTD users must meet digital link requirements. HMRC may consider deferrals for taxpayers with complex legacy systems.
  • 1 April 2022: Mandate expanded to include all businesses registered for UK VAT, regardless of size.
  • 1 November 2022: Businesses filing VAT returns can no longer submit via an existing online VAT account unless HMRC has agreed to an exemption from MTD. Businesses that file annual VAT returns will still be able to use their VAT online account until 15 May 2023.
  • January 2023: Any VAT registered businesses that fail to sign up for MTD and file returns through MTD-compatible software will incur a default surcharge or late submission penalty and interest.
  • 6 April 2026: Self-employed persons or landlords must follow MTD requirements if they have an annual basis or property income surpassing £50,000
  • April 2027: Self-employed persons or landlords must meet MTD requirements when their income surpasses £30,000

Penalties for not complying with Making Tax Digital

Not complying with the HMRC’s requirements for MTD may lead to penalties. These can include:
  • A default surcharge of up to 15% for any late payments of VAT due.
  • Up to 100% of any VAT understated or over-claimed if a VAT return contains a careless or deliberate inaccuracy.
  • Up to 30% of an understated assessment of VAT due if HMRC isn’t informed within 30 days that it’s incorrect.
  • £400 for submitting a paper VAT return without an exemption.

MTD digital links

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

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

A digital link can be

  • XML, CSV import and export, and download and upload of files
  • Automated data transfer
  • API transfer
Transfer of data and subsequent import of data into software by means of email or tangible digital media (i.e. flash drive)

Making Tax Digital for Corporation Tax

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

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How to set up Making Tax Digital with Sovos

Sovos can help you with MTD in two ways:

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

FAQ

Can I use Excel for Making Tax Digital?

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

How do I setup MTD?

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

Who needs to register for Making Tax Digital?

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

What is the threshold for Making Tax Digital?

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

Do sole traders have to make tax digital?

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

Need help with Making Tax Digital?

Speak to our experts

SII Spain: An Overview

SII Spain: Suministro Inmediato de Información

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

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

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

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

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

Get in touch

Table of Contents

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

Who SII affects

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

Where is SII applicable in Spain?

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

The distinct areas where SII is applicable include:

  • Mainland Spain
  • Canary Islands
  • Bizkaia
  • Gipuzkoa
  • Alava

Quick facts about SII Spain

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

Spain: Rollout dates

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

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

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

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

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

Penalties: What happens if you don’t comply

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

Sovos Helps Companies Stay Compliant with Spain’s SII

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

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

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

Learn more about our solution

Additional obligations for VAT compliance in Spain

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

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

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

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

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

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

Find out more about Bizkaia’s Batuz tax system.

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

Understand TicketBAI with our dedicated blog.

FAQ for SII in Spain

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

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

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

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

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

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

  1. Issued Invoices Ledger
  2. Received Invoices Ledger
  3. Investment goods ledger
  4. Certain Intra-Community operations ledger

Sovos Helps Companies Stay Compliant with Spain’s SII

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

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

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

Click to learn more about our solution

Looking for more VAT compliance resources?

Guide to European VAT Compliance

Your guide to making VAT compliance simple
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Blog: Continuous Transaction Controls

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

Spain VAT compliance

A comprehensive overview about VAT compliance in Spain
Read Now

Spain e-invoicing

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

Need immediate help with tax compliance in Spain?

Contact us to prepare for the Spain SII today.
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What is Turkey's E‑Transformation?

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

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

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

Table of Contents

At a glance: E-Transformation Turkey

E-Fatura Turkey

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

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

Format
UBL-TR format

eSignature Requirement
Required – fiscal stamp or qualified electronic signature

Archiving requirement
10 years

E-arşiv Fatura Turkey

CTC Type
E-invoice reporting (daily basis)

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

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

eSignature Requirement
Required – fiscal stamp or qualified electronic signature

E-Transformation in Turkey

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

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

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

Learn more

E-Transformation practices and applications

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

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

e-Fatura

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

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

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

e-Arşiv Fatura

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

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

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

e-İrsaliye

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

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

Information required in this type of e-document includes:

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

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

e-Defter

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

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

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

e-Mutabakat

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

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

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

e-Müstahsil Makbuzu

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

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

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

e-Serbest Meslek

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

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

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

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

Who is affected by e-Transformation?

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

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

What are the benefits of e-Transformation?

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

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

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

Tax compliance and e-Transformation

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

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

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

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

How Sovos can help with your e-Transformation journey

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

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

See our solutions

E-Transformation FAQ

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

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

Related resources to e‑Transformation

Navigate Turkey’s evolving tax landscape

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

Tax compliance software for Turkey

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

Turkey’s e-transformation solutions and benefits

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

Norway SAF-T: Everything You Need to Know

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

SAF-T may seem complicated in this country, but it doesn’t have to be. Read on for your ideal overview of this tax rule.

Table of contents

1. The legal framework of SAF-T in Norway 2. When to submit a SAF-T declaration in Norway 3. Norway’s SAF-T timeline 4. Implementing SAF-T as a business 5. FAQ 6. How Sovos can help 7. Additional resources

The legal framework

Norway’s SAF-T requirements apply to businesses with bookkeeping obligations who use electronic accounting systems, including registered foreign bodies. Submission is on request and doesn’t currently have periodic submission requests. SAF-T files must by ideally submitted via the Altinn internet portal.

Businesses with a turnover of less than NOK 5 million who aren’t subjected to mandatory bookkeeping are exempt unless they have electronic bookkeeping information available. Enterprises with less than 600 vouchers annually that hold accounts in spreadsheets or a text editor program are exempt.

When to submit a SAF-T declaration in Norway

In Norway, although SAF-T (Regnskap) reporting is mandatory, submission is on an on-demand basis following a request in connection with an audit.

Please note, however, that Norway’s VAT return, which is also a SAF-T and must be submitted every two months, should not be confused with the financial SAF-T Regnskap.

Timeline

  • 1 October 2016 – The Norwegian tax authority publishes the first version of the SAF-T financial
  • 1 January 2017 – Voluntary adoption of SAF-T begins
  • 1 January 2020 – Norway introduces mandatory SAF-T reporting on demand
  • 1 January 2022 – Updates to Norway’s VAT return require users to map transactions to the existing tax codes utilised in the SAF-T mandate, with users able to submit returns from ERP systems
  • 1 January 2025 – New SAF-T Financial format (version 1.30) becomes mandatory

 Other requirements for VAT compliance in Norway

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

In addition to its requirements, taxpayers should be aware of Norway’s e-invoicing requirements for B2G transactions. 

With the EU’s ViDA initiative now approved, Norwegian businesses will need to send invoices electronically for cross-border B2B transactions from 1 July 2030. 

Implementing SAF-T as a business

Complying with your tax obligations is vital. SAF-T is one of the VAT requirements for Norwegian businesses, adding to compliance workloads.

How Sovos can Help

Sovos SAF-T solutions can help your organisation to spend less time on compliance and more on growing your business. Automate your preparation process to drive efficiency and ensure accuracy, providing peace of mind that you will avoid potential fines and penalties.

Get in touch with us

FAQ

SAF-T reporting in Norway is mandatory as of 1 January 2020 but submission is on an on-demand basis.

SAF-T stands for Standard Audit File Tax and is a format used internationally for the electronic exchange of accounting data. The OECD (Organisation for Economic Co-operation and Development) defines the standard for SAF-T.

Additional resources

Norway e-invoicing

An overview of e-invoicing requirements in Norway.
Learn more

Introduction to SAF-T

An eBook explaining the SAF-T international standards.
Read now

India E-Invoicing: All You Need to Know

Under India’s Goods and Services Tax (GST) framework, the country’s e-invoicing system falls under the category of continuous transaction controls (CTCs). India’s electronic invoicing mandate currently includes B2G and B2B transactions.

While the system has now been in place for a number of years, familiarisation and optimisation are not simple. This page aims to help, providing everything you must now about the e-invoicing system in India –bookmark it to stay on top on any future changes.

Table of contents

1. How does e-invoicing work in India?

2. Format of electronic invoices in India

3. Timeline of e-invoicing adoption in India

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

5. Setting up e-invoicing in India with Sovos

6. FAQ

7. Additional resources

How does e-invoicing work in India?

The obligation to report invoice data to the governmental portal, the Invoice Registration Portal (IRP), is a mandatory step before an invoice can be issued.

The legal validity of the invoice is conditional on the IRP, which digitally signs the invoice and provides an Invoice Reference Number (IRN). If the IRN is not included in an invoice, the document will not be legally valid.

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

Electronic invoices must be securely archived for eight years.

Format of electronic invoices in India

Firstly, all e-invoices must be submitted to the nation’s invoice portal in JSON format. From there, the IRP will generate the IRN, include it in the JSON, and sign the file. The IRP will also generate the QR code data which can be used to generate a QR code.

Like with paper invoices and other nations’ versions of e-invoices, India has strict requirements for the information included on electronic invoices issued by businesses.

Required information includes:

  • Unique invoice number
  • Buyer and seller details
  • Issuance date
  • Description of goods and/or services
  • Quantity, price and total amount
  • Tax details (e.g. amount payable)

Timeline of e-invoicing adoption in India

India’s journey to implementing e-invoicing began in 2020 and is still ongoing. Here are the key dates and developments:

  • 1 January 2020:Voluntary period for businesses with a turnover of Rs.500 Crore or more.
  • 1 February 2020:Voluntary period for businesses with a turnover of Rs.100 Crore or more.
  • 1 October 2020:Beginning of the mandatory period for businesses with a turnover of Rs.500 Crore or more (six months later than previously intended). For the first 30 days, there was a grace period during which invoices could be reported after they had been issued.
  • 1 January 2021:Beginning of the mandatory period for businesses with a turnover of Rs.100 Crore or more.
  • 1 April 2021:Threshold for mandatory e-invoicing lowered to taxpayers with turnover between Rs. 100 Crore to Rs. 50 Crore.
  • 1 April 2022:Threshold lowered from Rs. 50 Crore to Rs. 20 Crore. Taxpayers above Rs. 20 Crore must implement e-invoicing.
  • 1 October 2022:Threshold lowered to taxpayers with an annual threshold of Rs. 10 Crore.
  • 1 August 2023:Threshold lowered to taxpayers with an annual threshold of Rs. 5 Crore.
  • September 2024: GST Council recommends pilot rollout for B2C e-invoicing following a successful implementation of e-invoicing for B2B transactions.
  • 1 October 2024: The Invoice Management System is launched on the Goods and Services Tax portal.

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

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

FAQ

Issuing electronic invoices is mandatory for domestic companies in India that surpass the annual threshold of Rs. 5 Crore, specifically for B2B, B2G and export transactions.

India introduced its e-invoicing system on 1 October 2020, though its use was not mandated to all taxpayers at launch.

An electronic invoice, or e-invoice, is a digital version of the traditional paper invoice that is submitted and transferred online. Many countries now mandate the electronic issuance of invoices, including India.

All companies established in India that surpass the Rs. 5 Crore threshold must issue electronic invoices when selling to businesses and government entities.

Setting up e-invoicing in India with Sovos

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

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

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

Complete the form below to speak with one of our e-invoicing experts

Additional resources

Peppol E-invoicing explained

Find out about India’s preferred e-invoicing framework provider.
Learn more

Asia Pacific E-invoicing

Learn about e-invoicing across Asia.
Read here

E-invoicing Guide

Sovos’ ultimate free guide to global e-invoicing.
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E-invoicing France

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

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

Note: On 17th of December 2025  the French Tax Authorities (DGFiP) confirmed Sovos as a certified Plateforme Agréée  (PA). This means that Sovos is among the select few certified providers authorized to facilitate e-invoicing compliance in France, reflecting our solution’s robustness and our long-standing commitment to regulatory compliance.

France’s e-invoicing mandate, combined with the e-reporting obligation, provides the tax authorities with access to transaction data. This is to increase efficiency, cut costs and fight fraud. Whether you are a buyer or supplier, the mandate’s effect on businesses and their operational processes, financial systems and people is extensive.

This France e-invoicing guide will explain:

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

Table of contents

1. At a glance: France e-invoicing​

2. E-invoicing in France: Requirements and regulations

3. Implementation timeline

4. Register for e-invoicing in France with Sovos

5. FAQ

6. Additional resources

At a glance: France e-invoicing

France B2B e-invoicing

Network
PPF

Format
UBL, CII or Factur-X

France B2G e-invoicing

Network
ChorusPro

Format
UBL, CII or Factur-X

E-invoicing in France: Requirements and regulations

    • The French mandatory e-invoice system relies on a network of private certified service providers who connect taxpayers by facilitating the exchange of e-invoices and, additionally, connect the taxpayers to the French administration’s centralized platform (PPF) thus allowing the reporting of relevant invoice data.
    • The French mandate consists of 3 main obligations: e-invoicing, e-reporting of invoicing data and exchange of e-invoices lifecycle statuses.
      • E-invoicing: all B2B domestic supplies in France carried out between established entities, including branches of foreign companies, are subject to the e-invoicing obligation, i.e., only established entities will be impacted by this obligation.
      • E-reporting: the e-reporting obligation is applicable to both established as well as non-established VAT registered entities, although with varying degrees of coverage. This obligation will cover transactions not under scope of the e-invoicing obligation such as B2C supplies and cross-border transactions.
      • E-invoice lifecycle statuses: transmitted by the PAs providing real-time visibility on the statuses of electronic invoices being exchanged in the ecosystem. Particularly concerning transactions for which tax is payable on collection, taxpayers are required to report payment statuses as well.
    • The accredited PAs, who exchange the electronic invoices between taxpayers and report invoice data to the PPF, must support 3 mandatory core-set formats for the exchange of electronic invoices – UBL, CII or Factur-X (a mixed human-readable and structured format) – although other structured formats may be used.
    • E-invoices must include all mandatory fields as defined in the Code Général des Impôts as well as those required by commercial laws.
    • Exchanging e-invoices directly between trading parties who are not registered as Platforme Agréées is not allowed. Invoices must be exchanged between parties through certified service providers.
    • E-reporting frequencies are based on the VAT regimes that taxpayers are subject to. Taxpayers subject to the monthly VAT periodic reporting regime are required to e-report invoice data every 10 days.

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

E-invoicing and e-reporting in France: Implementation timeline

  • August 2023: The French Directorate General of Public Finances (DGFiP) postponed the implementation of the country’s e-invoicing mandate
  • December 2023: The Finance Law for 2024 is adopted, establishing new implementation dates for the e-invoicing mandate
  • June 2024: French authorities published a new version of the e-invoicing mandate External Specifications file
  • February 2026: Testing/voluntary phase begins. This is highly promoted by the French Tax Authority, as this phase is seen as a “ramp up period” to ensure that all businesses are ready to comply with the mandatory phase from Sept 2026
  • September 2026: All businesses must be able to accept e-invoices. It also becomes mandatory for large & intermediate-size businesses to issue e-invoices (& comply with e-reporting regulations).
  • September 2027: It also becomes mandatory for all other businesses to issue e-invoices (& comply with e-reporting regulations).

Register for e-invoicing in France with Sovos

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

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

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

Complete the form below to speak with one of our e-invoicing experts

FAQ

France’s e-reporting requirements are established alongside the new e-invoicing mandate, with the reporting frequency based on the taxpayers’ applicable VAT regime. The e-reporting requirement will complement the e-invoicing mandate by facilitating the transmission of data on B2C and cross-border B2B transactions.

In France, an electronic invoice is defined as an invoice which is issued and transmitted in paperless form, following a structured format.

France’s e-invoicing requirements come into effect during 2026-2027, depending on business size. However, from September 2026, all companies must be able to receive e-invoices through an accredited service provider (a PA).

  • E-invoicing: €15 per invoice, capped at €15,000 per year
  • E-reporting: €250 per transmission, capped at €45,000 per year

The structure of the e-invoices can be UBL, CII or Factur-X (a mixed format) or any other structured format.

Exchanging e-invoices directly between trading parties is not allowed. Originally it was intended that either a registered service provider (PA) or the centralized platform (Portail Public de Facturation – PPF) would transmit the e-invoice to the buyer party, which would then be able to leverage either a PA or the PPF for receiving the invoice.

However, the French Tax Authorities announced on 15 October 2024 that the PPF’s role has been significantly reduced and they will no longer handle the exchange of invoices for all companies across the country. As such, the French State’s “own free-of-charge” PA utility service will not become available to French businesses.

Therefore, all companies in scope are required to select a PA. Without the PPF being available as a free invoice exchange platform, it is estimated that 4+ million companies will now have to rely on PA-enabled accounting software to receive those transactions.

PAs are private service providers accredited by the tax authority to intermediate data flows between trading partners and the PPF. They will act as the interface between companies and the French government and will be directly involved in issuing and receiving invoices. Following the announcement, on 15th October 2024, that the PPF will no longer be acting as a free invoice exchange platform, all companies in scope are required to select a PA.

Following a rigorous evaluation process by the French Tax Authority (DGFiP), Sovos was granted its “Plateforme Agréée” (PA, formally known as a “PDP”) status, with the registration number n°0004, subject to conditions. This conditional registration recognized Sovos as one of a select few providers authorized to participate in the next phase of the DGFiP certification program, reflecting our solution’s robustness and our long-standing commitment to regulatory compliance.

These conditions required all PAs to successfully complete the official testing process organized by the DGFiP, which commenced on Tuesday, October 14th, 2025, and lasted up 3 months. Following validation by the DGFiP, final and definitive PA certification was granted to Sovos on 17th of December 2025.

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

Learn more about e-invoicing and how to comply.

Additional resources

E-invoicing: Your Guide

Everything you should know about e-invoicing.
Read now

France: E-invoicing eBook

Learn more about France’s move towards CTCs.
Download today

France B2B E-invoicing Updates

Stay in the know with the latest developments.
Learn more

South Dakota v. Wayfair Economic Nexus Threshold Table

Sovos has put together an economic nexus thresholds table to keep you informed of each state’s effective and pending remote sales tax collection legislation.

Contact Us for A Free Evaluation of Your Risk

 

Reminder: Remote sellers may have obligations if your sales exceed these thresholds. As such, the ability of your tax compliance software to provide always-up-to-date “roof-top” accuracy sales tax rates for any new jurisdictional obligations should be taken into consideration. Also, be sure to work with your out of state suppliers on how to handle invoicing sales and use tax, and make sure any customers with exemptions in economic nexus states have provided up-to-date exemption certificates. Likewise, some states are creating special filing regimes for eCommerce sellers to simplify the filing process, so be sure to check if you’re eligible to avoid errors.

As always – deciding whether or not to register for sales tax in a given jurisdiction is a serious decision – consider involving your accountant or trusted tax advisor if you have any questions or concerns.

Sovos Sales & Use Tax solutions can help you

Global Tax Determination

Real-time and batch tax determination
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Use Tax Manager

Learn how our Use Tax Manager product provides your tax team the visibility and control needed over tax data on every purchase - without slowing down your Accounts Payable process.
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CertManager

Learn how our CertManager product simplifies and streamlines your exemption certificate management and verification process.
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Sales & Use Tax Filing

Learn how Sovos Sales and Use Tax Filing can help your team file more returns accurately and on time in every jurisdiction with less effort.
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Electronic invoicing in Colombia

Electronic invoicing in Colombia, often called Colombia facturacion electronica, is mandated for established taxpayers. While it was an early mover in giving legal weight to e-invoices, Colombia’s mandate only came into effect in 2019 and has been subject to change since.

Understanding the specificities of the rules of overall tax compliance is vital. That’s why Sovos’ regulatory experts have produced this complete overview of Colombia e-invoicing. Bookmark this page to stay up to date with the latest requirements.

Table of contents

1. Characteristics of electronic invoicing in Colombia

2. Electronic invoicing law in Colombia

3. How does an e-invoice work in Colombia?

4. Timeline of e-invoicing in Colombia

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

6. Setting up e-invoicing in Colombia with Sovos

7. FAQ

8. Additional resources

Characteristics of electronic invoicing in Colombia

Colombia B2B e-invoicing

All companies are required to issue electronic sales invoices with prior validation before issuance. Companies must enable themselves as electronic issuers through the web portal assigned by the DIAN.

Suppliers must also certify as Technology Services Providers (PST) and receive a unique software identifier. The standard format used is XML, following the UBL V2.1 (Universal Business Language) adopted by the DIAN.

A digital signature is mandatory to ensure authenticity and integrity throughout the invoicing process.

Invoices must use a consecutive numbering system assigned by the DIAN, along with a Unique Electronic Invoice Code (CUFE) for identification and data integrity. Issuers must create a graphic representation of the invoice in PDF format, including a QR code.

Both issuers and receivers must securely archive e-invoices for a minimum period of five years, counted from January 1 of the year following the document’s preparation, issuance or receipt.

Colombia B2G e-invoicing

Starting in November 2020, electronic invoicing became mandatory for all taxpayers – including B2G transactions. All suppliers must issue electronic invoices and buyers are required to receive them. Buyers do not need to validate the invoice. Acceptance or rejection is only for invoices that operate as security.

Electronic invoices (Facturas electrónicas)

The electronic invoice is the evolution of the traditional invoice. It has the same validity as paper in a legal sense, but it is generated, validated, issued, received,  and preserved electronically. In tax terms, it supports sales transactions of goods and/or services.

All electronic sales invoices for tax recognition must be validated prior to their issuance by the Special Administrative Unit of the National Tax and Customs Directorate (DIAN).

The electronic sales invoice will only be classed as issued when it is validated and delivered to the purchaser – providing it also complies with the conditions, terms and technical and technological mechanisms established by the DIAN.

The Spanish language and the Colombian peso must be used in the generation of the documents that are part of the invoicing system, without prejudice to the fact that the respective value may be expressed in another currency and in a language other than Spanish.

Electronic equivalent documents (Documentos equivalentes electrónicos)

In the context of electronic invoicing in Colombia, equivalent documents are digital receipts issued by the DIAN (National Tax and Customs Directorate) for transactions that do not require a sales invoice.

The Electronic Equivalent Document is defined as a document that:

  • Contains the information of a commercial operation carried out by a subject that is not required to issue an electronic invoice
  • Complies with legal requirements
  • Is generated and transferred electronically through a technology provider authorised by the DIAN

Adjustment notes are included for the electronic equivalent document and have been created as a mechanism for their cancellation or correction.

Electronic sales receipt

An electronic sales receipt is a receipt that is issued to final consumers.

The equivalent electronic documents grant the purchaser, subject to compliance with the other requirements provided for in the tax legislation, the right to discountable sales tax, income tax and complementary costs and deductions.

In the case of the equivalent electronic document (a cash register ticket with the P.O.S. system), the purchaser must be identified with the name or company name and identification number to apply these benefits.

The electronic equivalent document requires technical adjustments to be implemented in accordance with the Technical Annex in version 1.0.

Electronic debit and credit notes

Credit and debit notes are documents that allow adjustments or corrections to be made to electronic invoices. They must be generated and transmitted electronically to the DIAN for validation.

The credit note will be the mechanism for cancelling the electronic sales invoice.

Document for payments in favour of non-VAT responsible

This document is a type of invoice that must be issued by the buyer when purchasing goods or services from persons not responsible for issue electronic e-invoice.

Electronic invoicing law in Colombia

Electronic Invoicing is mandatory in Colombia for businesses that are registered for Value Added Tax (VAT).

The mandate follows a pre-clearance model that came into effect in January 2019, starting with large taxpayers. It became mandatory for all taxpayers as of November 2020 and covers B2G, B2B and B2C transactions.

Electronic invoices are sent directly to the DIAN for automatic validation in the current system, ensuring that transactions are recorded accurately and efficiently.

The invoicing system comprises four steps: generation, transmission, validation and dispatch.

For more specifics on Colombia facturacion electronica (e-invoicing), read on.

Types of documents subject to the Colombian electronic invoice regime

The electronic invoicing mandate in Colombia applies to the following documents and transactions:

  • Electronic invoices: Required in B2B transactions and when generating tax credit. The validity of this document is subject to strict compliance rules covering structure, issuance and validation.
  • Electronic debit and credit notes: Issued by the seller to recover expenses or accredit cancellations, discounts or other modifications to issued electronic invoices and tickets. Like electronic invoices, such notes must be pre-validated.
  • Document for payments in favour of the not responsible for issuing e-invoices or equivalent documents: A type of invoice that must be issued by the buyer when purchasing goods or services from people not responsible for issuing e-invoices or equivalent documents.
  • Receipt for work income: Must be issued according to the format established in the technical documents of the electronic invoice when disbursements related to the taxpayer’s payroll are made, including parafiscal and social security contributions.
  • Electronic equivalent documents: The following are currently considered equivalent to electronic invoices:
  1. Tickets for machine registers with POS systems
  2. Cinema admission tickets
  3. Passenger transport tickets
  4. Extracts issued by financial and similar institutions for financing operations
  5. Air transport tickets
  6. Documents in localised games of slots, bingo, casinos and the like
  7. The ballot, fraction, cardboard, forms or the like in games of luck or chance
  8. Documents issued in the collection of tolls
  9. Settlement receipts issued by the Colombian Stock Exchange
  10. The document of operations of the agricultural exchange and other commodities
  11. Documents issued for home public services
  12. Ticket for public performances of the performing arts and others 

Electronic export and import invoice: Must be issued to support export and import operations and other documents related to customs operations. So far, only electronic export invoices have been developed and put into production.

 

XML schema based on UBL 2.1

The standard e-invoicing format for e-invoices in Colombia is XML. This format follows Universal Business Language (UBL) V2.1.

The XML document is generated, comprised of the information that Colombia’s tax authority requires, and then signed with a digital certificate. From there, the taxpayer’s certified software validates the data, as well as both the issuer and recipient, and reports the transaction to the DIAN.

The tax authority will then record the document, assign a unique e-invoice number, notify the issuer that it has been processed successfully and deliver the XML to the issuer.

Unique electronic invoice code – CUFE

The Clave Única de Facturación (CUFE) code enables electronic invoices to be identified unequivocally. It’s also known simply as a unique electronic invoice code and is comprised of data from an invoice and the Technical Control Content Key provided by the tax authority.

The CUFE code also ensures the integrity of documents by using SHA384 encryption.

QR code

As well as being in the XML format with a digital signature and unique e-invoice code (CUFE), valid e-invoices in Colombia must include a QR code. This is mandated by law and is possible via certified technology providers like Sovos.

For customers who cannot receive electronic invoices, they are sent a QR Code invoice for the transaction.

Electronic container

Resolution 165 contemplates the use of the electronic container. The electronic container is a mandatory electronic instrument used to include the information of the electronic sales invoice, debit notes, credit notes and general electronic information derived from the systems of billing – along with the validation carried out by the DIAN where applicable.

This means that e-invoices must utilise digital signatures to guarantee the authenticity and integrity of the document. The issuer must digitally sign the invoice to the standards laid out by the regulation and the tax authority’s signature policy.

How does an e-invoice work in Colombia?

Colombia’s electronic invoicing system contains multiple processes that the electronic biller, the DIAN, the technology providers and the electronic receivers or purchasers participate in.

Once the electronic biller complies with the authorisation requirements, they can start generating electronic invoices and equivalent documents.

Among the most important processes of this generation system are the following:

Validation: Colombia’s current electronic invoicing system requires invoices, and other documents issued by the person responsible for electronic invoicing, to be validated by the DIAN before being issued to their recipient.

Once this process is completed, the DIAN will proceed to register the electronic document in its databases with the value “document validated by the DIAN” while generating, signing, storing and sending a validation message to the electronic biller for its issuance and delivery to the acquirer.

Receipt of electronic documents: Electronic billers must also act as electronic receivers. To do this, they must establish an email to receive electronic sales invoices issued by their suppliers and other documents subject to the electronic invoice mandate.

This obligation is fulfilled by issuing an acknowledgement of receipt by the recipient and should only be done when the document issued has been validated by the DIAN. From a commercial point of view, if the recipient of the document agrees with the document received then they must formally accept it.

If the document does not comply with the commercial conditions agreed with the supplier, they must commercially reject the document and the associated acknowledgement of receipt issued. If, after receiving the document, the recipient does not reject it within three working days from the day indicated in the deliveryDate field (or in the issueDate field), the document will be considered tacitly accepted.

Contingency: The current electronic invoicing legislation states that if the taxpayer is unable to issue an electronic invoice, or any of the other equivalent documents, due to technological problems attributable to the DIAN, they may issue the document supporting the transaction without the validation of the DIAN.

These documents may be invoices in a paper checkbook. In such situations, the taxpayer must use the billing ranges authorised by the DIAN. After the contingency situation is over, the obligor will have a period of 48 hours to send these documents to the tax authority for validation.

The RADIAN: RADIAN is an information system that allows the circulation and traceability of e-invoices as a security title, hereinafter referred to as an electronic sales invoice value title.

Once an electronic sales invoice becomes a value title and is registered in RADIAN, negotiation is possible for the legitimate holder and/or through agents and/or operators authorised by the Ministry of Commerce, Industry and Tourism.

There are other processes aimed at guaranteeing the negotiation, transfer, endorsement and execution of said document.

Issuance and delivery of the sales invoice and/or the equivalent document: The issuance of the sales invoice or equivalent document includes its generation, transmission, validation and delivery to the purchaser for each of the sales operations and/or provision of services carried out.

The issuance of these documents must comply with the applicable legal requirements, as well as with the special requirements and the conditions, characteristics, terms and technical and technological mechanisms developed by the DIAN.

Timeline of e-invoicing in Colombia

  • 1995: Colombia gives e-invoices the same status as paper invoices
  • 18 April 2016: Pilot project launched with 58 companies
  • January 2019: E-invoicing becomes mandatory for large VAT-registered businesses
  • February 2023: Large taxpayers required to issue electronic sales invoices for cash register tickets over 5 UVT
  • November 2020: E-invoicing becomes mandatory for all VAT-registered businesses
  • March 2023: Decree 442 introduces changes to electronic invoice regulations
  • March 2023: Taxpayers that file for income and complementary tax must issue electronics sales invoices for cash register tickets over 5 UVT
  • April 2023: Taxpayers that do not file for income and complementary tax must issue electronics sales invoices for cash register tickets over 5 UVT
  • June 2023: All taxpayers must issue electronics sales invoices for cash register tickets over 5 UVT
  • November 2023: Resolution 165/2023 develops new rules for the invoicing system and publishes new technical annexes.
  • 1 May 2024: All taxpayers in scope must have implemented the latest electronic sales invoice rules by now
  • April 2025: Resolution 202 modifies the data required of the purchaser or buyer for the issuance of the e-invoice or EED.

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

Those who do not meet the requirements of Colombia’s e-invoicing mandate may well face repercussions.

The current sanctioning system of the regime of Colombia is regulated by the provisions of article 652-1 of the Tax Statute, which basically provides for two types of sanctions. Non-compliance may result in fines of up to 1% of the value involved in invalid invoices, or the closure of establishments for up to 30 days.

What else do I need for VAT compliance in Colombia?

Businesses that provide taxable goods or services in Colombia may need to register for VAT. The VAT registration process is done through the single tax registry (RUT). Once registered, the taxpayer identification number (NIT) is obtained.

FAQ

In Colombia, all VAT-registered businesses are required to send and receive invoices electronically. All taxpayers must establish themselves as electronic invoice issuers through the tax authority’s web portal and then issue e-invoices for transactions.

Colombia’s e-invoicing regime is mandatory for all businesses that are registered for VAT. That said, there are some exclusions like financial institutions, companies with an income below a particular threshold and other segments of business.

Any VAT-registered business that is established in Colombia is required to meet the demands of the tax authority’s electronic invoicing mandate.

You can view the electronic invoice in two ways:

Using a software authorised by the DIAN to open and verify the electronic container. The software must be able to read the XML format and the digital signature of the invoice. You can use the free DIAN upload portal or a third-party software provider.

Scanning the QR code of the invoice with your smartphone or tablet. The QR code will redirect you to the DIAN website, where you can see the invoice details and download it in PDF format.

DIAN registration, testing and enablement are the steps that a taxpayer must follow to become an authorised issuer of electronic invoices in Colombia.

The process consists of the following stages:

Registration: The taxpayer must register in the Unique Tax Registry (RUT) and obtain a digital certificate to sign the electronic invoices. The taxpayer must also choose a software provider to generate, transmit and validate the electronic invoices.

Testing: The taxpayer must perform a series of tests to verify the correct functioning of the software and the compliance with the technical and legal requirements established by the DIAN. The tests include the generation, transmission, validation and consultation of electronic invoices – as well as the management of contingencies and errors.

Enablement: Once the taxpayer passes the tests, the DIAN will enable the taxpayer to issue electronic invoices in the production environment. The taxpayer will receive a notification and a number of authorisation of numeration (NAN) to start issuing electronic invoices.

Sovos is certified by the DIAN to provide e-invoicing technology and solutions to eligible taxpayers in Colombia.

Setting up e-invoicing in Colombia with Sovos

With electronic invoicing becoming more common globally, following the lead of Latin American countries like Colombia, it is important that you prioritise compliance.

The global – yet fragmented – adoption of e-invoicing solidifies the need to choose a single vendor for complete compliance, wherever you do business. Sovos is a tax compliance partner you can trust.

Focus on what truly matters: speak with a member of our team today to begin reclaiming your time.

Complete the form below to speak with one of our e-invoicing experts

Additional resources for e-invoicing compliance

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Tax in Hungary: All you need to know​ about RTIR Hungary

RTIR Hungary

In 2018, Hungary established a legal framework requiring taxpayers to use a designed schema to report invoice data to the tax authority (NAV) in real-time for domestic transactions above a minimum VAT amount.

Due to the success of this measure, the scope of the mandate has been extended to include a wider range of transactions, and the earlier thresholds have been abolished. The impact of the mandate is now broadly felt in Hungary where all transactions between domestic taxable persons must be reported to the NAV, regardless of the amount of VAT accounted.

 

Have questions? Get in touch with a Sovos expert on RTIR Hungary.

Hungary VAT mandate quick facts

  • Immediate disclosure of data from all invoices issued under the scope of the mandate.
  • Once an e-invoice is issued, transmission of data must occur automatically using a machine-to-machine interface and must be done without human intervention
  • The transmission must include identification data and the obligatory data content as required under the Hungarian VAT Act.
  • VAT returns are filed monthly or quarterly and are due on the twentieth of the month after the end of the tax period.
  • The VAT return contains several appendices requiring additional information on transactions such as supplies of new means of transport and metals subject to the domestic reverse charge.
  • Alongside the VAT return, taxpayers must submit a summary report on all domestic purchases for which they’re claiming an input tax deduction.
RTIR Hungary
budapest-pedestrian-thriving-community

Mandate rollout dates

  • 1 July 2018: Mandate applies to all taxable persons to report invoice data in real-time to the National Custom and Tax administration of Hungary for domestic transactions with a minimum VAT amount of 100,000 HUF.

  • 1 July 2020: The VAT threshold was abolished and all domestic transactions between taxable persons in Hungary must be reported regardless of the VAT accounted.

  • 1 January 2021: Reporting obligations include B2C invoice issue and B2B intra-community supplies and exports.

  • 1 January- 31 March 2021: The Ministry of Finance granted a sanction-free three-month grace period to comply with new reporting obligations and to give businesses time to transfer from the current version (v 2.0 XSD) to the new version v3.0 XSD.

  • 1 April 2021: Mandatory usage of the new version (v3.0 XSD) begins.

RTIR Hungary Penalties

  • Failure to report the invoices in real-time could lead to an administrative penalty of up to 500,000 HUF per invoice not reported.

  • Additional penalties would apply for non-compliance with the invoicing software requirements.

Budapest cityscape
Infographic

Hungary’s CTC Requirements

Understand more about Hungary’s NAV system, how to file invoices, when businesses are required to comply and how Sovos can help.

Learn More

How can Sovos help with VAT compliance?

Sovos enables businesses to stay up to date with the latest requirements and technical specifications so they can effectively connect with the NAV and honour their VAT compliance obligations.

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Marketplace Tax Liability Requirements Table

Sovos has put together a marketplace facilitator sales tax collection requirements table to keep marketplace sellers informed of each state’s effective and pending remote sales tax collection legislation and responsibilities based on physical or economic nexus status.

Contact Us for A Free Evaluation of Your Risk

 

Reminder: Remote sellers may have reporting and/or collection obligations if conducting business through a marketplace. As such, the ability of your tax compliance software to provide always-up-to-date “roof-top” accuracy sales tax rates for any new jurisdictional obligations should be taken into consideration. Also, be sure to work with your out of state suppliers on how to handle invoicing sales and use tax, and make sure any customers with exemptions in economic nexus states have provided up-to-date exemption certificates. Likewise, some states are creating special filing regimes for eCommerce sellers to simplify the filing process, so be sure to check if you’re eligible to avoid errors.

As always – deciding whether or not to register for sales tax in a given jurisdiction is a serious decision – consider involving your accountant or trusted tax advisor if you have any questions or concerns.

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