Tax authorities across Eastern Europe continue to move ahead with SAF-T adoption, with upcoming changes impacting VAT compliance requirements for businesses operating in the region.
In this exclusive webinar, you’ll get in-depth insights on:
– Romania’s SAF-T expansion: The tax authorities will expand the scope of businesses impacted by this requirement to non-established companies from January 2025
– Bulgaria’s SAF-T Introduction (2025): Learn about Bulgaria’s planned adoption of the SAF-T framework and what it means for businesses operating in the region
– Poland’s Extended SAF-T Reporting: Discover how Poland is expanding its SAF-T filing requirements and how this may affect VAT compliance and audits
Join our expert, Clementine Mayor, VAT Consultant as she unpacks the latest developments in VAT reporting across Eastern Europe. Don’t miss this opportunity to understand how these changes will shape the future of VAT audits and prepare your business for compliance.
Determining and calculating IPT liabilities in various regions can be challenging.
Sovos IPT Determination is a compliance software designed to streamline Insurance Premium Tax (IPT) calculations and ensure accurate tax reporting.
In this webinar, Ramesh Sudhan, Sovos’ Director of Product and Research & Development, will guide you step-by-step through several typical processes supported by the solution.
Cross-border trade requires navigating complex regulations, customs requirements, and tax laws – with compliance being essential to avoid costly penalties.
Recent mandates in Romania highlight these challenges, emphasising the need for up-to-date knowledge. Businesses trading across the EU must understand country-specific mandates, like VAT obligations and e-invoicing, especially for companies which are VAT-registered in multiple countries.
The Government of the Republic of Slovenia has released a draft proposal to implement mandatory e-invoicing and e-reporting for B2B and B2C transactions. This implementation would mark a significant shift in the country’s e-invoicing landscape.
Should the proposal be approved, taxpayers will be subject to a two-fold obligation: they must issue and exchange B2B invoices electronically and report B2B and B2C transactional data to the tax authority. Although clearance will not be required in the e-invoice issuance process, transactional data must be reported to the tax authority in near real-time, which shows that Slovenia is aligning with the global trend of governments implementing Continuous Transaction Controls (CTC).
Taxpayers under scope are all business entities registered in Slovenia’s Business Register (PRS), including companies, self-employed entities and associations. To register in the PRS, business entities must have a registered office or address in the territory of the Republic of Slovenia.
This new system also introduces a decentralised reporting and exchange model facilitated by registered service providers, called e-route providers. These are similar to the network exchange requirements in France and those planned for Spain.
The proposed mandatory e-invoicing and CTC e-reporting will be introduced from 1 June 2026.
The e-invoicing mandate would require taxpayers to issue, send and receive e-invoices and other e-documents for B2B domestic transactions.
Under the Slovenian proposal, e-invoices refer to an invoice or similar accounting document that records business transactions, regardless of what they are called. This includes credit notes, debit notes, advance invoices, payment requests, etc.
There are multiple supported formats for the exchange of e-invoices:
The proposal allows three methods for e-invoice issuance and exchange:
In cases where the issuer and recipient use e-invoice different standards, if using e-route providers, the recipient’s provider must convert the e-invoice to the syntax accepted by the recipient.
Regarding B2C transactions, consumers will have the option to receive either e-invoices or paper invoices. This must be agreed upon by the parties. If an e-invoice is issued, suppliers will be obliged to provide a visualised content version (e.g., PDF).
The proposal states that taxpayers must electronically report B2B and B2C transactional data, including cross-border transactions, to the Financial Administration of the Republic of Slovenia (FURS) within eight days of invoice issuance or receipt. Reporting must be done exclusively in the e-SLOG standard.
The reporting requirement extends to B2C and cross-border transactions, regardless of whether an invoice was issued electronically. This ensures that transactions such as these, for which e-invoicing is not mandatory, are reported to the FURS allowing it a comprehensive collection of taxpayers’ transactional data.
The selected method for e-invoice exchange will impact the e-reporting of transactional data. If the parties use e-route providers, both the issuer’s and recipient’s providers must send the e-invoice to FURS. For direct exchanges, both parties must separately report their transactions to FURS.
The draft establishes obligations and certain technical requirements applicable to e-route providers. According to the Slovenian government, the requirements to become an e-route provider are comparable to those in France but without the need for certification
However, the public authorities will maintain a list of registered e-route service providers who must fulfil certain requirements, some of which are already listed in the draft law. The proposal does not state explicit local registration/establishment rules for e-route providers. The government will publish further regulations detailing the application process and other applicable requirements.
The government must take certain crucial steps before enforcing the mandate. The Parliament must officially approve the draft law before the requirements are confirmed.
Moreover, publication of the technical specifications and further regulations are awaited, including details of the data reporting methods to the tax authority. Slovenia will need to apply for a derogation from the VAT Directive with the EU Commission to enforce mandatory B2B e-invoicing before the adoption of ViDA (VAT in the Digital Age).
For businesses operating in Slovenia, this will mean impactful changes to their outbound and inbound processes by 1 June 2026. This includes the acquisition of software or update of their systems to issue, send and receive e-invoices, adapting to the allowed e-invoicing formats and connecting to the FURS or availing the services of e-route providers to electronically report their data.
Have questions about how these changes could affect your operations? Ask our team of experts.
Meet the Sovos team in Prague where Anna Norden, Sovos’ Principal, Regulatory Affairs will be sharing an update on the CIAT Digitalization Classification Matrix. The team will also be waiting to greet you at the Sovos stand to discuss all things e-invoicing.
Sovos invites you to meet the team in London and hear Ryan Ostilly, our VP, Product Management share strategies for harnessing tax compliance measures as a force for growth within your organisation.
Sovos are delighted to support this year’s event as Platinum sponsors. Meet the team and learn more about our Indirect Tax Suite and how it can benefit your business.
The Inland Revenue Authority of Singapore (IRAS) has announced the implementation of a phased adoption of InvoiceNow, the national e-invoicing framework based on the Peppol network, for GST registered businesses starting voluntarily in May 2025. The mandate will cover B2B transactions only, as the government is expected to make B2G mandatory in the coming years.
InvoiceNow is a nationwide e-invoicing initiative by The Infocomm Media Development Authority (IMDA) for SMEs and large enterprises to streamline their invoicing for a faster and more sustainable way to transact, nationwide and worldwide.
Singapore’s nationwide e-invoicing network was first announced in 2019 and has recently been referred to as InvoiceNow. The mandate will require GST registered businesses to use InvoiceNow solutions to transmit invoice data to IRAS. The transmission of invoice data to IRAS will be done through Peppol Access Point (AP) service providers, extending the traditional four corner e-delivery model to a fifth corner model.
The mandate will be implemented in phases, as follows:
Even though an implementation timeline for all businesses has not been shared yet, further updates are expected in the future.
Saphety Level – Trusted Services, S.A is an IMDA-certified Peppol service provider in Singapore. Our regulatory experts can connect to the InvoiceNow network on your behalf.
Climate-related events are an issue that impacts all industries, and the insurance industry is certainly no exception.
Beyond the challenges that insurers face in assessing the likelihood of weather-related events and natural disasters, there are also difficulties affecting Insurance Premium Tax (IPT) as countries look at ways to ensure they can fund responses to the consequences of these events. Some of these are not direct IPT measures but inevitably impact IPT, whereas others are direct IPT-related measures.
Natural catastrophe coverage is often an optional add-on to property insurance. In some countries, however, that is not the case – such coverage is mandatory. France and Spain are examples of this, with regimes in place involving the Caisse Centrale de Réassurance (CCR) and Consorcio de Compensación de Seguros (CCS), respectively.
Against a background of increasing costs due to natural disasters, recent months have seen other European countries follow suit with similar laws or proposals. Italy, for example, passed a law in late 2023 which requires companies to take out insurance policies by the end of 2024 to cover natural disasters occurring in the country. The government has authorised an Italian insurer to provide reinsurance of such risks like CCR in France, up to certain limits.
Germany and Slovenia have also seen resolutions or proposals for similar laws. In Germany, the Federal Council has called on the government to introduce mandatory natural catastrophe insurance. This is in light of the insurance protection gap relating to such coverage of properties. It remains to be seen whether the government will act based on this.
The increasing costs of weather-related events have triggered Slovenia’s national programme for protecting against natural disasters in the coming years, and a discussion of mandatory state insurance was recommended.
Additional premium amounts paid for natural catastrophe insurance can be expected to attract IPT and any applicable parafiscal charges due in these countries.
Weather-related events have also been cited as a reason for various premium taxation changes. In France, the additional premium rates due on risks which trigger natural catastrophe coverage (property and fire, as well as certain motor coverage) are increasing. Most notably, for property and fire risks, the premium rate is increasing from 12% to 20%. As IPT is due on this additional premium, this will significantly increase the IPT due on these policies.
Climate-related issues have had a major impact on levies used to fund emergency services due on property insurance in some states in Australia, specifically New South Wales and Tasmania. There is increasing pressure to reform the levies (with mixed success) due to the spiraling costs of responding to natural disasters. The levies result in huge increases to premium values, so the Insurance Council of Australia, amongst others, has urged the states to find a more sustainable way to fund emergency services.
Sovos actively monitors changes that impact IPT and is best positioned to advise if you have any IPT queries. Contact our experts today for more information.
The taxation of insurance premiums in Hungary is unique, both in terms of the technique used to calculate the tax and how it is governed.
Regarding calculating Insurance Premium Tax (IPT), Hungary is the only country in the EU where the regime uses the so-called sliding scale rate model. It applies to both IPT and the extra profit tax on insurance premium amounts (EPTIPT), also known as the supplemental insurance tax.
The insurance premium tax law (Act of 102/2012) includes the rules of IPT. However, this law can be amended by a government decree. Government Decree of 197/2022 regulates the EPTIPT. The Hungarian Tax Office has issued guidance about the rules of insurance premium taxation, and both IPT and EPTIPT are declared on the same return template.
In Hungary, insurance premium tax (IPT) and extra profit tax (EPTIPT) are levied on the premium amounts collected by the insurance companies.
In Hungary, it is almost impossible to determine the rate and amount of the insurance premium tax for a single policy, because IPT and EPTIPT are levied on the aggregated amount of the collected insurance premium.
The sliding scale regime considers:
For IPT, the threshold is HUF 20 billion since April 2024. It was HUF 8 billion prior to that. EPTIPT has no such taxable premium threshold.
For IPT, the scale is:
For IPT, the only exception from the sliding scale regime is the Class 10 motor third party liability insurance (MTPL) premium. IPT on MTPL premium is calculated differently, hence MTPL premium amount is not part of the aggregated taxable premium. The tax rate for MTPL premium is 23%.
EPTIPT’s scale differs from those of the IPT. Although the EPTIPT computation for non-life and life policies differs, the same scales apply. The EPTIPT scale is:
The rates, as of 2024, are:
The taxable basis is the insurance premium. The insurance premium is defined by the IPT Law (point 1 article 7 of Act 102/2012) as:
“The gross premium accounted for by the insurer based on accounting regulations for insurance services, including values not accounted for as gross premiums but considered as the countervalue for insurance services as coverage for insurance services, excluding premium income received from reinsurance taken from another insurance company, which is accounted for as gross income.”
MTPL premium amounts should not be considered for IPT’s sliding scale. However, the premium collected for MTPL is included in the EPTIPT non-life aggregated premium amount.
Life policies are exempt from IPT, but EPTIPT is payable on premium amounts collected by insurance companies from life policies.
Sickness insurance is exempt from both IPT and EPTIPT.
Another notable exemption is the premium amount collected on certain agricultural policies.
Currently, the biggest challenge in Hungarian Premium Taxation is the legal environment. The Constitution and the law on special measurements in case of catastrophic environments allow the government to amend tax rules – including IPT – via governmental decrees, instead of actually changing the relevant tax law.
For example, in 2022, a governmental decree introduced a new tax: the extra profit tax on insurance premium amounts (known as supplemental IPT or EPTIPT). In 2024, the government published another decree to change the applicable brackets of the sliding scale for the IPT regime.
The Act on Insurance Premium Tax No 102/2023 was not changed in either of these cases.
Hungarian IPT regulation is regularly changing. To keep yourself in the know, subscribe to Sovos’ tax alerts.
Here’s a brief timeline of changes to IPT in Hungary:
February 2024: Change for filing and payment of EPTIPT
March 2024: Hungary changes IsPT rates
These resources can help you navigate the intricacies of Insurance Premium Tax:
Sovos’ IPT Determination solution enables you to confidently calculate and apply IPT rates at quotation. Real-time tax updates ensure tax rates and tax applicability are always accurate.
Want to ease the burden on your tax teams? Sovos’ IPT Managed Services provides support from our team of local language regulatory specialists who monitor and interpret IPT regulations around the world, including in Hungary, so you don’t have to.
As the global e-invoicing landscape continues to shift and develop, our quarterly VAT Snapshot webinar brings you all the details on the key regulatory changes to watch.
Join Dilara Inal and Marta Sowinska from our Regulatory Analysis and Design team for a 30-minute update on the latest developments in e-invoicing regulations across Europe and beyond.
This session will cover:
Ever-changing Insurance Premium Tax (IPT) rules and regulations can be challenging to keep up with, so staying on top of the latest developments in IPT compliance is key.
Join our insightful webinar where Sovos’ IPT experts Edit Buliczka, James Brown and Jake Thorne will deep dive into the intricacies of remaining compliant in Hungary and discussing the current and the potential future impacts of the climate change to the IPT regulations across Europe and beyond.
Remaining current with the latest regulatory revisions in VAT reporting and SAF-T requirements in Poland. This webinar will deliver a comprehensive overview of recent changes to ensure you thoroughly understand the evolving compliance landscape. Gain valuable insights into essential strategies and best practices for preparing for VAT audits, mitigating risks and avoiding penalties.
The EU Directive for VAT has laid the groundwork for a harmonised VAT system throughout the different Member States. However, the implementation of the EU VAT law within the national jurisdictions still creates a disparity between its application and conditions to be met, specifically regarding some of the intra-EU simplifications to be applicable.
Following a webinar covering regulatory updates alongside key points of the VAT recovery process, this blog aims to shed light on the crucial aspects of VAT recovery – especially fast-approaching deadlines.
Understanding the nuances of VAT recovery applications is essential for businesses seeking to optimise operational costs by recovering VAT incurred in a different country. Let’s explore the fundamental aspects of the VAT recovery process.
Businesses can reclaim VAT incurred during their operations through VAT returns if registered in the country where costs are incurred. However, for those not registered and with no obligation to do as such, alternative routes such as the EU Refund Claim or 13th Directive procedure are available – provided specific criteria are met.
Before initiating a VAT refund claim, companies must carefully evaluate their taxable activities. Failure to identify taxable activity in the relevant country may result in the rejection of the VAT recovery application. In such cases, registering for VAT becomes imperative to facilitate input VAT recovery through VAT returns, subject to each country’s rules regarding retrospective VAT registration.
The range of recoverable expenses varies across countries, encompassing equipment, tooling, event costs, professional fees, accommodation and so on. However, due to varying regulations, conducting a comprehensive recoverability assessment based on each country’s VAT legislation is crucial before applying.
Adhering to deadlines is critical for successful VAT recovery.
EU businesses seeking VAT refunds from other Member States must submit an EU Refund Directive application by 30 September of the subsequent calendar year. Non-EU businesses aiming to reclaim VAT incurred in EU Member States should file a 13th Directive application by 30 June of the following year.
While some countries share a common deadline of 30 September, missing deadlines may restrict refund requests. Notably, even though in most cases, these deadlines cannot be extended, there are countries like the Netherlands where refund requests can be submitted to tax authorities up to five years back rather than just for the previous fiscal year.
Reciprocity agreements are pivotal in VAT refund claims, with most EU Member States mandating reciprocity. Understanding these laws is essential to avoid failed attempts at reclaiming VAT in non-reciprocal jurisdictions.
Recent updates include the UK-Italy agreement under the 13th VAT Directive, streamlining VAT refund claims for UK businesses. Notably, the deadline for a 13th directive application in Italy is September 30th, 2024, for all costs incurred during 2023 (i.e., purchase invoices dated in 2023). This represents a significant advancement toward streamlined cross-border VAT recovery processes for UK businesses. Additionally, it may be advantageous for businesses to revisit already submitted 13th Directive claims in Italy that were previously on hold due to the lack of reciprocity.
In conclusion, mastering the intricacies of VAT recovery empowers businesses to enhance financial efficiency and mitigate costs effectively. By navigating the essentials outlined above, businesses can embark on a journey toward unlocking their full VAT recovery potential.
Want to learn more about the VAT recovery process? Our expert team can help.