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.
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.
Recoverable expenses
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.
Meeting deadlines
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.
Understanding reciprocity
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.
In Austria, the insurance premium tax law regulates the indirect tax that applies to elements of coverage under a motor insurance policy. This blog details everything you need to know about this particular indirect tax in the country.
Which taxes are payable concerning motor insurance policies in Austria?
In Austria, Vehicle Insurance Tax (VIT), or the so-called motor-related insurance tax, is payable in relation to:
Motorcycles (classes L1e, L2e, L3e, L4e and L5e)
Passenger cars (class M1) under 3.5 tons of total gross weight
All other types of motor vehicles (e.g. light commercial vehicles of class N1) under 3.5 tons of total gross weight, though some exclusions apply (tractors, for example)
VIT is payable in addition to the 11% insurance premium tax (IPT).
How is VIT calculated for motor insurance policies in Austria?
The calculation of VIT is complex. The tax is determined by the type of vehicle, the engine capacity/displacement and CO2 emissions for motorbikes, the performance of the combustion engine and the emission in grams per kilometer for passenger automobiles and the power of the combustion engine for all other engine types.
The date of registration is another item to consider when calculating the amount of VIT. The computation for automobiles registered before 1 October 2020 is different, however.
The following rates are effective for passenger cars registered after 1 October 2020 are as follows:
EUR 0.72 per Kwatt of the power combustion engine
EUR 0.72 per gram of the value of CO2 emissions in grams per kilometre
In 2020, the first component, power, was lowered by 65 Kwatt, while the second component, emission, was reduced by 115 grams per kilometre. Since 2021, the deduction has been lowered annually. Every year, the first component is reduced by one and the second by three. As a result, in 2024, the deductions are 61 Kwatt and 103 grams per kilometre.
To complicate this further, the aforementioned calculation only applies to M1 passenger cars whose CO2 emissions were established using the WLTP (Worldwide Harmonised Light Vehicle) test method. If this process is not followed, the calculation will be different.
Special rates apply to motorhomes, motorcyclists and other multi-track motor vehicles.
The computed amount is due monthly. Prior to 2020, the regularity of the payment was another aspect to consider in the computation.
What vehicles are exempt from tax in Austria?
First and foremost, VIT is required on motor vehicles weighing up to 3.5 tonnes. If the vehicle’s weight exceeds this limit, another type of tax – motor vehicle tax – is due.
Electronic invoicing is mandatory for B2G supplies and optional for B2B and B2C supplies.
However, the Greek authorities are on the way to implementing a nationwide B2B e-invoicing mandate as part of the e-invoicing reform. The reform started in 2020 with the roll-out of the country’s e-audit scheme called myDATA.
E-invoicing requirements across B2G, B2B and B2C transactions vary, making it a demanding task to stay on top of compliance with the country’s e-invoicing regulations. This page details the current status quo and will be updated as changes are enforced – be sure to bookmark it and revisit it to stay compliant.
E-invoicing through an accredited e-invoicing service provider
Network
PEPPOL
Format of e-invoice
EN-compliant, PEPPOL BIS 3.0 (Greek CIUS)
eSignature Requirement
N/A
Archiving Requirement
5 years
Greece B2B e-invoicing
E-invoicing/CTC Type
Post-audit/Voluntary CTC e-invoicing (via an accredited e-invoicing service provider)
Network
Exchange not regulated (unless CTC e-invoicing is used)
Format of e-invoice
E-invoice format not regulated (EN-compliant, if CTC e-invoicing is used)
eSignature Requirement
N/A
Archiving Requirement
5 years
Greece B2C e-invoicing
Greece does not have a mandate for e-invoicing as far as B2C transactions are concerned. Fiscal devices currently used for issuing compliant invoices for B2C sales must follow new technical requirements for the connection and real-time reporting of B2C sales data to the myDATA platform (new generation online tax mechanisms).
E-Invoicing regulations in Greece
In Greece, there are several regulations relating to electronic invoicing. The regulations include:
The transposition of Directive 2014/55/EU mandates the government sector to receive electronic invoices.
Joint Ministerial Decision No. 52445 ΕΞ/2023, mandating the use of e-invoices for all sales made to the government.
Joint Ministerial Decision no. 63446/2021 (as amended by Joint Ministerial Decision no. 31781ΕΞ2022/2022), specifies the e-invoice format for B2G transactions which is compliant with the European standard (EN 16931).
The Ministerial Decision No. 1017/2020 specifies the e-invoice format for B2B transactions in the nation.
The Ministerial Decision No. A.1035/2020 dictates rules and regulations for accredited e-invoicing service providers.
Timeline: B2G e-invoicing adoption in Greece
The tax authority has rolled out the B2G e-invoicing mandate in phases. The mandate covers most public contracts, from defense to general supplies and services. The gradual implementation has been concluded according to the following calendar:
As of 12 September 2023: suppliers to some major government agencies (e.g. Ministry of Transport, Ministry of Digital Transformation, Ministry of Migration and Asylum, etc.).
As of 1 January 2024: suppliers to all central government agencies.
From 1 June 2024: suppliers to all other government authorities.
From 1 January 2025: other government expenses must be invoiced electronically (outside the scope of public procurement contracts)
1 July, 2030: Greek VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions.
Format of an e-invoice in Greece
Governments implement electronic invoices to simplify and standardise the transmission of data in transactions, and Greece is no different. The e-invoice format in B2G transactions is based on the European standard for e-invoicing (EN 16931) and PEPPOL BIS Billing 3.0.
The format of a B2B e-invoice in Greece is not regulated and largely falls in line with the obligations of the EU VAT Directive. Invoices must include information such as:
Issuance date
Date of supply
Supplier’s VAT number
Names and addresses of both supplier and customer
Full description and quantities of goods
Net taxable value
VAT rate and amount
CTC e-invoicing via an accredited e-invoicing service provider for B2B transactions is voluntary. While Greece has yet to implement a nationwide B2B mandate, it has a set standard and format for taxpayers who issue e-invoices voluntarily. The e-invoice must be in a structured format compliant with the European standard.
Process of B2G e-invoicing in Greece
If you do business with a public sector entity in Greece, you must issue invoices electronically. Doing so requires you to follow a set process:
Prepare the e-invoice data and send it to the accredited e-invoicing service provider.
The e-invoicing service provider validates the invoice data before submitting it, using the respective services of the National Interoperability Center (KED), which is responsible for receiving all e-invoices by suppliers through the PEPPOL network.
The e-invoicing service provider reports certain invoice data in a structured format and according to specific technical specifications to the myDATA platform for clearance and receives back a unique registration number (MARK).
The e-invoicing service provider prepares the e-invoice based on the European standard, according to the Joint Ministerial Decision no. 63446/2021 (as amended by Joint Ministerial Decision no. 31781ΕΞ2022/2022).
The e-invoicing service provider submits the e-invoice to the Access Point of the National Interoperability Center through the PEPPOL network.
The National Interoperability Center receives and validates the e-invoice according to the European standard and national rules for e-invoicing.
The National Interoperability Center routes the e-invoice to the competent contracting authority.
The competent contracting authority handles the e-invoice according to their internal procurement and payment process.
Upon receipt of the e-invoice, the contracting authority sends a response message regarding the status of the e-invoice back to the supplier through the National Interoperability Centre and his e-invoicing service provider.
Benefits of using e-invoicing in Greece
Greece provides incentives for using CTC e-invoicing through accredited service providers, as per Law 4701/2020, for the 2020-2024 tax years.
These incentives include a reduction of the statute of limitation for fiscal matters by two years and a depreciation of twice the cost incurred for acquiring technical equipment and software required to implement electronic invoicing.
Implementing e-invoicing can also be beneficial by automating and standardising your processes, reducing the chance of clerical errors and freeing up resources.
Future of e-invoicing in Greece
Following the steps of other EU countries, Greece has applied for an authorization from the EU to implement a country-wide B2B domestic e-invoicing mandate. The country is close to receiving this derogation, with the final approval from the Council of the EU still pending.
According to the EU Commission’s proposal for the derogation decision, Greece would be able to introduce mandatory B2B e-invoicing as early as July 2025. The mandate will target Greek established businesses and will function alongside the existing myDATA e-audit obligation.
The Greek government has not yet announced the official deadlines or regulatory framework for its upcoming B2B e-invoicing mandate, but this is now only a matter of time.
As many European countries seek to digitize their tax systems to increase transparency for tax authorities and reduce the VAT gap – Greece is moving in this same direction with changes on the horizon.
Additional obligations for VAT compliance in Greece
Electronic invoicing and myDATA are important obligations for taxpayers in Greece to be aware of, but there are more compliance needs that many need to meet.
Consider the evolving nature of tax regulations. The number of obligations and the chance of change make meeting your obligations an ongoing, demanding task.
It’s vital that you are aware of what applies to your organisation, and how to stay on top of your requirements. Find out more about Greece VAT compliance through our dedicated overview, and bookmark the page to stay updated on any regulatory updates.
Electronic invoicing is mandatory for B2G supplies, as of September 2023, and optional for B2B and B2C supplies. However, invoice data for B2B, B2G and B2C supplies, and other accounting data must be reported to the myDATA platform.
Greece has requested EU authorization to implement mandatory domestic B2B e-invoicing, still pending final approval. If approved, implementation would be possible from July 2025.
Since 2021, companies established in Greece have been required to electronically report accounting data through the myDATA system. MyDATA is mandatory for all taxpayers subject to Greek accounting rules.
Greece’s myDATA is a reporting obligation of ledger-type data, and it is not to be confused with e-invoicing as it doesn’t require invoices to be issued and exchanged in electronic form.
Greece mandates e-invoices in B2G transactions and allows for invoices in B2B/B2C transactions to be issued and exchanged on paper or electronically, following the standard e-invoicing rules of the EU VAT Directive or the voluntary CTC e-invoicing scheme.
How Sovos can help
Sovos’ Compliance Cloud is a complete platform for tax compliance and regulatory reporting. The platform provides one place to identify, determine and report on global tax obligations, including those in Greece.
Get in touch with us
Related resources
Stay on top of the tax transformation with these resources.
Unlock the secrets to fruitful global trade in our latest webinar; our consulting expert Luca Clivati will provide valuable insights and guidance to help businesses maximise operational and financial efficiency when trading globally.
E-invoicing: An Overview
Turkey was an early adopter of electronic invoicing when considering the global landscape of tax digitization. As part of its larger e-Transformation initiative, the country mandated e-invoicing in 2014.
Understanding the complexities of Turkey e-invoicing and its other electronic systems can be challenging, however, and that’s why this page exists. Be sure to avoid penalties for non-compliance by exploring this mandate overview – and bookmark the page to ensure you are always on top of any regulatory changes.
Want to speak to a tax expert? Get in touch with our compliance team.
Fiscal stamp or qualified electronic signature required
Archiving Requirement
10 years
Turkey B2G e-invoicing
CTC Type
E-invoice clearance with two-way application
Network
GIB portal
Format
UBL-TR 1.2
eSignature Requirement
Fiscal stamp or qualified electronic signature required
Archiving Requirement
10 years
Who needs e-invoicing in Turkey?
The scope that mandates e-invoicing usage in Turkey has evolved over time. Considering the cost of non-compliance, it is important to know if you fall under the requirements of the regulation.
Companies with turnovers exceeding TRY 3 million are required to use electronic invoices, though there are also sector-based parameters for the mandate that ignore the turnover threshold. This turnover exception includes:
Companies licensed by the Turkish Energy Market Regulatory Authority
Middlemen or merchants that trade fruits or vegetables
Online service providers that facilitate online trade
Importers and dealers
How to issue an e-invoice?
Before getting started with issuing and receiving electronic invoices in Turkey, taxpayers are required to register on the tax authority’s GIB portal. They need their Vergi Kimlik Numarasi – a 10-digit tax identification number – for a successful registration.
Once registered, taxpayers have a few options for issuing electronic invoices. They can either use the GIB portal, integrate the portal with their own internal applications or use a vendor like Sovos (which has its own Turkey e-invoice solution).
What are the benefits of e-invoicing in Turkey?
Besides the fact that e-invoicing is mandatory for many businesses and all public administrations in Turkey, there are several benefits of invoicing electronically.
Cost-saving: Reducing paper, postage and manual labour saves money
Time-saving: Using structured, automated electronic systems and processes saves time
Compatibility: The universal format of e-invoices and systems increases interoperability
Security: The automation, validation and authentication of e-invoices maintain integrity
Legal requirements for an e-invoice in Turkey
The e-invoice mandate in Turkey requires taxpayers to include specific information on electronic invoices. These requirements include:
Invoice date
Invoice reference number
Description and specification of goods and services delivered
Total net amount and gross amount for the order
Supplier details (name, address, tax ID, etc)
E-invoices are required to be secured with an eSignature. Individuals must use a Qualified Electronic Signature (QES), a more secure version of an electronic signature.
From September 2023, it will also be mandatory to include a QR code on electronic invoices (as well as other electronic document types).
E-invoicing software
E-invoicing software allows you to create and send electronic invoices online. Solutions need to meet the specifications set forth by the Turkish Revenue Authority, either integrating into your existing system or serving as a cloud platform.
Sovos’ e-invoice compliance solution allows customers to meet their compliance requirements, both in Turkey and globally. If you are part of an international organisation, our platform allows you to stay compliant wherever you do business.
The future of e-invoicing
Turkey is well ahead of most when it comes to the digitization of its tax system. This includes utilising electronic invoices, with the country mandating the use of e-invoices for specific companies on 1 April 2014. Find out more about Turkey’s e-Transformation.
That said, tax digitization is still developing globally. In the EU, the VAT in the Digital Age initiative aims to digitize tax across the region. If passed, this proposal could produce major changes to how businesses operate across the European Union – including using e-invoices and digital reporting.
The rapid yet fragmented digitization of tax worldwide only increases the importance of working with a global compliance partner like Sovos. It’s vital to take a long-term view when dealing with compliance.
Additional obligations for VAT compliance in Turkey
Turkey has a vast digital tax system comprised of many electronic systems and documents. It stepped up its tax system in 2012 with its e-Transformation initiative and produced a host of potential compliance requirements for taxpayers.
As well as e-invoicing, there are other related requirements organisations must be aware of. These include:
Turkey e-invoicing is a mandate that requires certain taxpayers to issue and receive invoices electronically. According to the TRA’s regulations, taxpayers with annual revenue of over 3 million TL must register in the e-invoicing system.
Within the scope of the communiqué published by the Revenue Administration; as of July 1, 2022
Taxpayers with a turnover of 5 million TL for the 2018, 2019 and 2020 accounting periods, 4 million TL for the 2021 accounting period and 3 million TL or more for the 2022 and subsequent accounting periods,
Service providers who have a gross sales revenue of 1 Million TL for 2020 or 2021 account periods, 500 thousand TL or more for 2022 and subsequent account periods;
Service providers who provide electronic commerce environment for the execution of commercial activities on the internet to mediate the purchase, sale, rental or distribution of goods or services,
Owners or operators of websites that publish advertisements related to the sale or rental of real estate, motor vehicle vehicles belonging to real and legal persons on the internet, and internet advertising service agents who are engaged in mediating the publication of advertisements on the internet,
Those who have a gross sales revenue of 1 Million TL for the 2020 or 2021 account periods, 500 thousand TL or more for the 2022 and subsequent accounting periods;
Those who sell goods or services on their own or their intermediary service providers’ websites or any other electronic environment,
Taxpayers who have a gross sales revenue of 1 Million TL for the 2020 or 2021 accounting periods, 500 thousand TL or more for the 2022 and subsequent accounting periods
Those who make real estate and/or motor vehicle, construction, manufacturing, purchase, sale or rental transactions and taxpayers who are in mediatory activities for these transactions,
Hotel businesses that provide accommodation services by obtaining investment and/or operating certificates from the Ministry of Culture and Tourism and municipalities, which have a gross sales revenue of 1 million TL for 2020 or 2021 accounting periods, 500,000 TL or more for 2022 and subsequent accounting periods, must switch to e-invoice.
Also:
EMRA licensed taxpayers in the list numbered ÖTV I (Special Consumption Tax),
Taxpayers who manufacture, build, and import the goods in the list numbered ÖTV III,
Taxpayers who trade fruits and vegetables as brokers or traders,
Health service providers who have signed a contract with the Social Security Institution and all taxpayers who supply medical materials and drugs/active substances (hospitals, medical centers, branch centers, dialysis centers, other specialized treatment centers licensed from the Ministry of Health, diagnosis, examination and imaging centers, laboratories, pharmacies, medical device and material suppliers, optician institutions, hearing center, spas, private law legal entities that offer and/or produce human medical products/products and their branches that do not have legal personality, pharmaceutical warehouses, etc.) also have to use e-Invoice.
The cancellation and return process of an e-invoice is the same as the paper invoices when viewed technically. However, in practice, some processes vary.
Find out more about cancelling and refunding electronic invoices in Turkey.
After switching to the e-invoice application, you cannot issue a paper invoice for e-invoice users. After switching to the e-invoice system, the option period granted to you is limited to seven days. During this time, you can continue to issue paper invoices.
Failure to comply with Turkey’s e-invoicing mandate may result in a financial penalty which equates to 10% of the value of the missed electronic invoice(s) in question. The maximum amount a taxpayer can be penalised in a year changes annually. Currently, the maximum is TRY 1,700,000.
Direct Integration: Businesses can prepare their own computing infrastructures within the framework of the infrastructure and quality certifications specified by the Revenue Administration Department with technical guidelines. They can carry out their processes with their own infrastructures that work integrated with the GIB.
GİB Portal: The application can be used by entering invoices through the Revenue Administration Portal served by the Revenue Administration.
Special Integratorship: Companies such as Sovos, which have received a special integrator permission from the Revenue Administration, can be easily started by quickly switching to the e-Invoice application.
It is very easy to use e-invoices with Sovos. If taxpayers who will electronically invoice with the special integrator method prefer the Sovos solution, they are given all kinds of support for an easy transition to e-invoice.
Unlike the GİB Portal method, there is no additional process required for e-invoice backup and storage with Sovos. If taxpayers who use e-invoice with the private integrator method prefer the Sovos solution, all incoming and outgoing invoices are stored securely in our developed infrastructure without paying an additional fee. (This retention is provided retrospectively for 10 years during the period of being a Sovos customer.)
Being obliged to use the e-invoice application within the framework of the conditions determined by the Revenue Administration is a term used for taxpayers. The regulations made regarding these conditions and limitations are announced by the notifications published by the GIB at regular intervals. In this context, many companies become e-invoice taxpayers within the scope of these requirements.
After switching to the e-Invoice application, you cannot issue a paper invoice for e-invoice users. After switching to the system, you are granted an option period of seven days. During this time, you can continue to issue paper invoices.
Since e-invoices are subject to the same provisions as paper invoices, the provision valid for paper invoices in Article 231 of Tax Procedure Law (VUK) No. 213 also applies to e-invoices. Accordingly, the issuance period for e-invoices is determined as seven days. According to the article, e-invoices must be created on the system and forwarded to the recipient within seven days.
Companies using SAP can benefit from Sovos’ SAP Packages for an end-to-end e-Transformation solution and start using the product without additional integration. Companies that use other ERP/Accounting Software can use their products without additional integration with the Sovos ERP Adapter solution. In integration situations where the Sovos Adapter is not covered, companies can use the Sovos API Documents to integrate with the Sovos APIs. They can access and start integration via https://api.fitbulut.com/servis/#/eInvoice.
The management of e-invoices that come with the Sovos solution is in your hands. Thanks to our user-friendly interface, you can easily access the invoice you want and archive the invoices you make transactions with in a few clicks. In addition, by providing increased control over certain invoices with the colour, display and business rules you will determine on the invoices; you can facilitate the invoice management processes of your users.
E-invoices are issued and received only between taxpayers who fall under e-invoicing obligations. The recipient and the sender must be registered in the GİB e-invoice application.
You can check whether your customer is registered on the electronic invoice from the e-Invoice-registered users list of the Revenue Administration. As another method, a query is made with VKN/TCKN from the e-invoice-registered user inquiry screens from the portal.
According to the Tax Procedure Law, the invoice must be issued within seven days from the date of service or delivery of the goods. It is possible to retroactively issue e-invoices if the seven-day period rule is followed. Technically, the portal has no restrictions.
No changes can be made to the e-invoice sent. In this case, a new electronic invoice is created upon the rejection of the invoice from the other side. Cancellation and refund transactions vary in basic e-invoicing and commercial e-invoicing scenarios.
How to be compliant with Sovos
Sovos has software that was built specifically to help customers meet their e-invoicing obligations in Turkey. Whether you integrate it into your system or use our cloud platform, it speeds up processes and provides immediate clarity for the status of your invoices.
As well as your organisation’s need to meet requirements in Turkey, the global tax digitization continues. If you operate internationally or plan to do so in the future, it’s becoming increasingly important to choose a compliance partner that monitors regulatory changes around the world. This is where Sovos steps in.
Organisations of all shapes and sizes trust Sovos with tax – including e-invoicing compliance – allowing them to focus more time and energy on their core business.
Get in touch with us
Related resources
Stay on top of the tax transformation with these resources.
Keeping up with e-invoicing requirements has never been a bigger task, especially if you operate internationally. Join us as we share the latest information necessary to successfully navigate the latest updates to the global e-invoicing landscape. This webinar will cover:
• Expansion of Romania’s e-transport mandate since December 2023
• Development of Spain’s SIF/Verifactu requirement
• Postponements in Portugal
• The legislative process for B2B Public Administration mandatory e-invoicing in Germany and Belgium
• Important dates to be aware of in Poland
• Recent changes to Malaysia’s e-invoicing mandate
• Date changes and key features in Israel
Sovos, the always-on compliance company, today announced a joint business relationship with the Belgian PwC Firm PwC Business Advisory Services bv/srl (hereinafter: “PwC”), leveraging the companies’ complementary tax and advisory service expertise and solutions to address vital e-invoicing and e-reporting needs.
Through this joint business relationship, Sovos and PwC clients can access comprehensive services to adeptly tackle the ever-evolving regulatory challenges linked to e-invoicing and e-reporting, as additional countries look to join the more than 80 countries worldwide with existing e-invoice requirements.
Through implementation of the Sovos Compliance Cloud, organisations will be able to identify and document client e-invoicing regulatory requirements across various markets, evaluate existing processes and technology, and align business objectives. Introduced in February, the Sovos Compliance Cloud is the industry’s premier unified, cloud-based tax compliance and regulatory software platform that provides a holistic system of record for global compliance.
“As companies navigate an increasingly interconnected and dynamic marketplace, the need for a more integrated e-invoice process has never been more crucial,” said Ellen Cortvriend, partner, of PwC in Belgium. “The Sovos joint business relationship allows us to deliver excellence in an e-invoicing-led global tax compliance project today, with the ability to streamline the e-invoice process even more over time.”
“With many clients of PwC in Belgium facing imminent e-invoicing mandates, the Sovos Compliance Cloud platform ensures a quick and successful integration,” said Alice Katwan, president of revenue, Sovos. “Rapid and complex compliance changes create both tax and IT challenges, from needing immediate tax determination at the point the invoice is raised, to the integration of validated e-invoices with periodic and SAF-T reporting. By reducing the operational burden and providing a singular data view into their compliance posture, Sovos and PwC allow companies to unlock tremendous business value.”
For business leaders seeking to understand more about the events driving regulatory changes and strategies to stay ahead of the compliance risk curve, PwC and Sovos compliance experts will host a complementary webinar, Have We Hit a Tipping Point for Global Indirect Tax?, on 11 April 2024 at 2 p.m. GMT. Registration is now open.
About Sovos
Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes.
More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than 11 billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates. For more information visit https://sovos.com and follow us on LinkedIn and Twitter.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 151 countries with more than 364,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
Stay updated on VAT Reporting and SAF-T with Sovos’ webinar. Explore legislative changes, prepare for VAT Recovery deadlines, and gain insights into SAF-T updates for Portugal, Bulgaria and Poland. Understand recovery claims essentials, crucial with the nearing 13th Directive deadline.
Malaysia CTC e-invoice Reporting
Since August 2024, e-invoicing in Malaysia has been mandatory for taxpayers with an annual turnover or revenue of more than RM100 million (~€20 million).
The mandate follows the continuous transaction control (CTC) model and requires e-invoices to be validated by the country’s tax authority, as well as electronic reporting of certain transactions.
The rollout to all other taxpayers undertaking commercial activities in Malaysia is ongoing, with full implementation targeted for July 2026.
Read on for an overview of Malaysia e-invoicing requirements and bookmark this page to stay updated with the latest mandate developments.
Malaysia e-invoicing adopts a continuous transaction control (CTC) approach. E-invoices must be submitted and cleared via MyInvois, the e-invoicing portal of the Inland Revenue Board of Malaysia (IRBM), known as MyInvois platform.
The IRBM requires mandatory e-invoicing for key sectors, while implementing a phased revenue-based approach through the MyInvois platform. Since August 2024, Malaysian taxpayers with an annual turnover or revenue of more than RM100 million have been required to submit and clear e-invoices for the above transactions.
Sectors in the scope of mandatory e-invoicing include:
Automative
Aviation
Luxury goods and jewellery
Construction
Licensed betting and gaming
Payments to agents, dealers and distributors
Any single transaction exceeding RM10,000 (approx. 2,000 euros) (effective 1 January 2026)
Electricity (effective 1 January 2026)
Telecommunications (effective 1 January 2026)
For transactions not in the scope of mandatory e-invoicing and the buyer does not request an e-invoice to be issued, the IRBM allows businesses to submit consolidated e-invoices on a monthly basis, with suppliers required to aggregate transactions and submit these within seven calendar days after month-end through the MyInvois portal.
For cross-border transactions, Malaysian taxpayers must issue a self-billed e-invoice to document the expense, but foreign parties do not need to implement the Malaysian e-invoicing system.
B2G e-invoicing in Malaysia
Malaysia introduced mandatory B2G e-invoicing at the same time as the obligation came into effect for B2B transactions. This means that taxpayers supplying public bodies must issue compliant electronic invoices.
These e-invoices must be formatted in XML or JSON and processed via the MyInvois portal. They must be secured with an electronic signature that utilises a local certificate.
The use of Peppol in Malaysia
Malaysia was an early adopter of Peppol in terms of international adoption.
Peppol is a pan-European e-invoicing initiative and the Malaysian Digital Economy Corporation (MDEC) spearheaded the framework’s adoption as part of the country’s drive towards mandating e-invoicing.
Malaysia aligned its e-invoicing standards with Peppol’s framework and standards to help push B2B transactions towards digitisation. As a result, taxpayers
October 2022:The Malaysian Ministry of Finance announces plans for e-invoicing pilot program for select taxpayers
November 2023:Mandatory e-invoicing implementation timeline is delayed to August 2024
February 2024: Inland Revenue Malaysia publishes Software Development Kit and e-invoicing guidelines
August 2024:Mandatory e-invoicing and clearance in Malaysia for taxpayers with an annual turnover or revenue of more than RM100 million (approx. 20 million euros)
January 2025: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM25 million (approx. 5 million euros) and RM100 million
July 2025: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM5 million (approx. 1 million euros) to RM25 million (approx. 5 million euros)
January 2026: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM1 million (approx. 200 thousand euros) to RM5 million (approx. 1 million euros)
July 2026: Mandatory e-invoicing for taxpayers with an annual turnover or revenue up to RM1 million (approx. 200 thousand euros)
Taxpayers with an annual turnover or revenue below RM500,000 (approx. 100 thousand euros) are exempt from mandatory e-invoicing requirements.
Malaysia’s e-invoicing mandate allows submission of e-invoices via a third-party API. Sovos’ e-invoice and e-reporting compliance solutions are suitable for Malaysia and other international tax requirements.
It’s hard to stay on top of tax and e-invoicing requirements, especially when your organisation operates in many countries. That is where Sovos comes in. Your compliance is our business; let us take care of your tax obligations—especially as rules and regulations evolve—so you can focus on growth.
Complete the form below to speak with one of our e-invoicing experts
E-invoicing has been mandatory for certain transactions for specific taxpayers since August 2024. The rollout to all other taxpayers undertaking commercial activities in Malaysia is ongoing, and full implementation is targeted for completion by July 2026.
There is a consolidated e-invoice requirement for transactions where e-invoicing is not mandatory, and the buyer does not request an e-invoice to be issued. Taxpayers must aggregate all invoices and receipts issued and issue a consolidated e-invoice via the MyInvois, on a monthly basis (within seven days from the month end).
The Malaysian government is gradually introducing this requirement across different taxpayer groups. All businesses conducting commercial activities in Malaysia should identify which implementation phase applies to their organisation. The rollout to all remaining taxpayers is progressing, with complete implementation targeted for completion by July 2026.
The Inland Revenue Board of Malaysia (IRBM) is the country’s e-invoicing authority. It is responsible for the MyInvois Portal, the platform used to submit, clear and validate e-invoices in the country.
Taxpayers within scope of the e-invoicing mandate submit documents via the country’s MyInvois Portal for validation, before sharing with the buyer. The real-time e-invoicing process saves time and resources for businesses and facilitates cross-border and international trade.
Yes, Sovos has been granted accreditation as a Peppol Service Provider by the Malaysia Digital Economy Corporation (MDEC). We are authorised to register end-user participants in Malaysia Service Metadata Publisher (SMP).
Peppol Service Providers, or Peppol Access Points (APs), are tasked with establishing and managing the connectivity gateways that serve as access nodes within the e-invoicing network. They ensure compliance with Peppol standards, facilitate the routing of e-invoices to the appropriate destination APs and handle the registration and updating of participant information in the Malaysia SMP.
Norway has an indirect tax that applies to elements of coverage under a motor insurance policy. This blog details everything you need to know about it.
Which taxes are payable in relation to motor insurance policies in Norway?
In 2018, Norway replaced the collection of traffic insurance tax with a new fee known as the Traffic Insurance Fee (TRIF). This fee is collected by the insurance companies on behalf of the Norwegian State, together with the premium for third-party motor liability insurance coverage.
The annual insurance tax needed significant administration. As such, implementing a new tax scheme on mandatory automobile third-party liability insurance policies aimed to streamline and speed up tax and excise administration. With the new approach, insurance companies must invoice TRIF together with the premium amount sent to registered vehicle owners. The fee is clearly stated on the invoice in a distinct line aptly named “Traffic Insurance Fee”.
How is TRIF on motor insurance policies calculated in Norway?
In Norway, the TRIF is charged for all registered cars that weigh under 7,500 kg. The Norwegian Tax Office collects the so-called weight-year tax on heavier vehicles, in which the TRIF is not due.
Norway charges the fee for insurance contracts on compulsory third-party liability insurance regarding motor vehicles registered domestically. The fee also applies to the sum received by the Norwegian Motor Insurers’ Bureau for uninsured motor vehicles or when the new owner has not taken out insurance for the motor vehicle.
There is no insurance premium tax on insurance policies covering Class 3 policies.
As stated above, insurance companies collect TRIF at the same time as the premium, so the fee is distributed in accordance with the frequency of premium payment. This can be monthly, quarterly, semi-annually or annually.
TRIF is a daily fee based on the type and usage of the vehicle. Vehicles are classified into five classes, from a) to f).
Group a) covers passenger cars, vans, camper vans, buses, combination cars, lorries, and tow trucks with a maximum total weight of 3,500 kg or higher
Group b) covers diesel-powered automobiles out of group a) that do not have a factory-installed particulate filter
Group c) comprises annual tests identifying markings for motor vehicles
Group d) covers motorcycles
Group e) covers other vehicles, including taxis, mopeds, tractors, vehicles that transport disabled people and vehicles that are over 30 years old
Group f) covers electric-powered vehicles
The new rates take effect on 1 March each year. This means that if the policy is issued or renewed on or after this date, the new rates will apply. The rates for 2024 range from NOK 0.37 (approx. EUR 0.032) for group e) to NOK 9.11 (approx. EUR 0.80) for group b).
What vehicles are exempt from tax in Norway?
Exemptions from TRIF occur based on the car’s usage or the owner. For example, motor vehicles registered at the Nordic Investment Bank that are used for official bank operations are exempt from TRIF. Vehicles registered at NATO or NATO headquarters, forces or personnel, as defined by international agreements, are also excluded. The exemption also applies to stolen cars.
The Ministry has the authority to issue regulations for implementation, delimitation and exemption criteria.
It is also worth mentioning that if liability insurance is not compulsory to take out, for example, in the case of the Norwegian state, municipalities or local institutions, the person responsible for the motor vehicle will be considered “self-insured”. In these circumstances, TRIF is not due.
Read our IPT Guide to learn more about Insurance Premium Tax compliance.
Have questions about the taxation of motor insurance policies or IPT in Norway? Speak to our experts.
e-invoicing in Poland: B2B, B2G, KSeF
Poland’s e-invoicing requirements are in flux. While the government has been required to receive e-invoices in B2G transactions since April 2019, the country’s B2G (for suppliers) and B2B e-invoicing rules are set to come into effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024, and in April 2026 for all other taxpayers.
Staying in the know is vital if your business is to avoid costly penalties.
Continue reading to learn about the current status quo of Poland e-invoicing, including the introduction of a Continuous Transaction Controls (CTC) system via the KSeF platform, as well as what you can expect going forward.
CTC Type E-Invoice clearance via KSeF or PEF for B2G transactions carried out with public institutions will take effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 and in April 2026 for everybody else.
Network Possible e-invoice issuance both via PEF and KSeF. If B2G, e-invoice will be issued in PEF and automatically transferred to the KSeF in order to assign a KSeF number. The PEF invoice will be visible in the KSeF in the appropriate tab for PEF invoices, and the information about the assigned KSeF number will be available in PEF.
Format PEF format (following the European Standard EN-16931-1:2017) or KSeF format supporting XML invoices (following the logical structure FA_VAT).
eSignature Requirement A qualified electronic signature or seal are one of the means that taxpayers must use to authenticate in KSeF.
The integrity and authenticity of an invoice are ensured by issuing structured e-invoices via KSeF.
Archiving Requirement 10 years.
Poland B2B e-invoicing
CTC Type E-invoice clearance via KSeF for transactions carried out by taxpayers with a registered office or fixed establishment in Poland (if in the latter case, the fixed establishment participates in the supply for which the invoice is issued) will take effect in February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 and in April 2026 for all other taxpayers.
Network Centralised network where the e-invoice exchange is processed through the KSeF platform provided by the Ministry of Finance.
Format XML following the logical structure FA_VAT.
eSignature Requirement Qualified electronic signature or seal are one of the means that taxpayers must use to authenticate in KSeF.
The integrity and authenticity of an invoice are ensured by issuing structured e-invoices via KSeF.
Archiving Requirement 10 years.
E-invoicing regulations in Poland
Tax compliance is monitored and regulated by the Ministry of Finance, particularly the National Revenue Administration. After implementing the SAF-T changes in Poland in the form of JPKs (Jednolity Plik Kontrolny), the Ministry of Finance is currently revolutionising the invoicing system, introducing the centralised platform Krajowy System E-Faktur (KSeF) for the transmission of structured e-invoices.
Since 2019, public entities in Poland have been mandated to receive and process e-invoices. While currently optional for suppliers of public entities, the transmission of e-invoices will be required for B2G and B2B transactions when the mandate is implemented in 2026.
KSeF Poland: National Electronic Invoicing System
Poland has introduced a national electronic invoicing system called KSeF (Krajowy System e-Faktur), which is a centralised platform for issuing and exchanging electronic invoices with a structured format, known as FA_VAT. The go-live date for issuing and receiving invoices via KSeF has been postponed three times since it was originally announced. Once in action, buyers and suppliers in B2B and B2G transactions will be mandated to issue and receive e-invoices through the KSeF platform.
While e-invoicing through KSeF has been available on a voluntary basis (known as KSeF 1.0), the Polish Ministry of Finance has implemented several changes to the system with KSeF 2.0, scheduled for launch in February 2026. This updated version includes features such as optional B2C e-invoicing, a permanent “offline24” mode, support for attachments, and postponement of certain KSeF-related obligations.
Learn more about KSEF 2.0, the key changes and its roll out in our blog.
Poland B2B e-invoicing
The issuance of electronic invoices through KSeF has been voluntary for businesses since 1 January 2022, meaning suppliers can issue e-invoices via KSeF. However, buyers can still request to receive them in a different format outside of KSeF.
This will change when e-invoicing via KSeF becomes mandatory in 2026 for the majority of businesses in Poland – namely registered VAT taxpayers who have a registered office or fixed establishment in Poland (if, in the latter case, the fixed establishment participates in the supply for which the invoice is issued).
Poland B2G e-invoicing
Poland’s own portal, PEF (Platforma Elektronicznego Fakturowania), has been in place since 2019. It aims to centralise and facilitate B2G e-invoice transmission allowing private companies and public bodies to issue and receive electronic invoices. All public entities in Poland have been obliged to register on PEF and receive structured e-invoices since 18 April 2019.
When the mandate takes effect, the PEF and KSeF systems will merge, meaning that e-invoicing in B2G transactions will be possible both via PEF and KSeF. B2G invoices will also need to receive a unique KSeF ID.
For instance, taxpayers will be able to use features available in KSeF like semantic validation of the e-invoice. Tax authorities will be able to access such invoices, regardless of if they were issued through PEF or KSeF. Therefore, it will be possible to continue issuing B2G invoices via PEF and according to the PEF e-invoice standard.
Timeline: e-invoicing adoption in Poland
The implementation of e-invoicing in Poland has been done in stages. Here is a brief timeline of electronic invoicing’s adoption in the country:
October 2021: Testing period of KSeF begins
December 2021: Testing period of KSeF ends
1 January 2022: Voluntary use of KSeF commenced
17 June 2022: Poland received the derogatory decision from the VAT Directive to introduce mandatory e-invoicing via KSeF
1 December 2022: Ministry of Finance published draft legislation amending the VAT Act regarding mandatory e-invoicing’s implementation
15 March 2023: Poland publishes second draft law amending the VAT Act, including KSeF changes
16 June 2023: The law amending VAT Act is published by the Ministry of Finance
1 February 2026: KSeF enters into force for the taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024
1 April 2026: KSeF enters into force for all taxpayers, except for businesses with monthly sales up to PLN 10,000 (approx. EUR 2,300)
1 January 2027: Businesses with monthly sales up to PLN 10,000 (approx. EUR 2,300) must issue e-invoices via KSeF
1 January 2027: Financial penalties/sanctions for KSeF-related errors become applicable, cash register invoices can no longer be issued outside of KSeF, and the requirement to provide the KSeF number for e-invoice payments goes live.
1 July, 2030: Polish VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions
While businesses will be legally required to use electronic invoices, there are benefits that taxpayers can enjoy when comparing e-invoices to traditional, paper invoicing. These include:
Cost savings: Reducing paper usage, postage and manual labour
Time savings: Electronic invoices use standardised formats and automated processes
Convenience: e-invoices increase interoperability across businesses
Increased security: Authentication and validation ensure the authenticity of transactions and the according invoices
How to choose the right e-invoicing software in Poland
It’s not enough to accept software that accommodates e-invoicing without adapting it to the often-changing local rules and standards, resulting in the new status quo right as it comes into effect.
While functionality is important, also consider the future when choosing your ideal e-invoicing software provider.
International businesses must keep their eye on the bigger compliance picture, looking beyond local mandates to ensure they are meeting their obligations everywhere they do business. This can be heavy on resources, especially when considering the scope for regulatory updates across multiple jurisdictions.
The future of e-invoicing is clear: Poland is working towards a vast implementation. A mandate will enter into force in February 2026 and become a requirement for many taxpayers. However, the implementation of VAT in the Digital Age (ViDA) cannot be forgotten when considering the future of e-invoicing in Poland. Designed to digitise the VAT system in the EU, ViDA will deliver further changes to how taxpayers in the country do business.
The future of e-invoicing and tax as a whole may be changing across the European Union, but Sovos can provide your organisation with the consistency and peace of mind you require. Bookmark this page to remain updated with the latest developments that may affect how you do business.
Additional obligations for VAT compliance in Poland
Keeping on top of the upcoming e-invoicing requirements is important, but it’s also crucial to remember other obligations your business may face when complying with Poland’s VAT regulations.
While adapting to the pressure of implementing e-invoicing, taxpayers need to remain mindful of overall VAT Compliance and the current SAF-T mandate in Poland.
The results of non-compliance can change businesses forever, but Sovos is here to help you stay on top of your obligations.
Setting up e-invoicing in Poland with Sovos
Sovos prides itself in its continuous transaction controls (CTC) software which is purpose-built for customers who must remain on top of tax obligations wherever they do business – even as regulations change in the future.
Taxpayers established in Poland will be starkly aware of the evolving demands of compliance, with B2B and B2G transactions requiring electronic invoicing.
As CTCs and e-invoicing rise in prominence globally, there has never been a better time than now to find a compliance partner who understands the rules in play and is already looking ahead at what’s to come. Sovos is the provider you can trust.
The Sovos e-invoicing compliance solution was put to work by Brown-Forman, which looked to ease the burden of compliance from its IT department. Brown-Forman was able to reallocate its resources to core business functions with peace of mind, knowing that Sovos was there to ensure its e-invoicing requirements were being met.
E-invoicing is mandatory in Poland for the public sector who must be able to receive e-invoices for B2G transactions. This will change when both B2G and B2B e-invoicing becomes obligatory via KSeF from February 2026 for the largest taxpayers and in April 2026 for everyone else. B2C e-invoicing will be optional.
Taxpayers will be mandated to electronically report specific information through KSeF, e.g. in cross-border transactions. In practice, e-invoicing and e-reporting are performed in the same way.
Yes, invoice archiving is mandatory in Poland. When KSeF becomes mandatory in February 2026, invoices will be automatically stored in the KSeF system for 10 years, though businesses are still advised to maintain their own archives as well.
Poland’s VAT Act mandates that invoices must be issued in two copies, with one being sent to the customer. Invoices cannot be raised before 30 days of the date of the delivery of the goods or services, but also no later than 15 days after the month they were delivered.
VAT invoices must contain numerous details as required by the tax authority, including the likes of:
Date of issuance
A unique identification number
Full name and address of buyer and seller
Description of type and quantity of supplied goods, or type and extent of rendered services
Date of transaction
VAT rate and amount payable
With the implementation of mandatory e-invoicing, additional data points are required to comply with the invoice schema.
Sending and receiving electronic invoicing for B2B and B2G transactions via KSeF in Poland will become mandatory from February 2026 for taxpayers whose turnover exceeds PLN 200 million (approx. EUR 46 million) in 2024 – and in April 2026 for all taxpayers.
KSeF (Krajowy System e-Faktur) is Poland’s national electronic invoicing system, which is a centralised platform for issuing and exchanging electronic invoices. E-invoices must follow a structured format, known as FA_VAT.
Access QR codes will be mandatory on invoices shared outside of KSeF with counterparties, whether issued in online or offline mode. Additionally, a second QR code based on the KSeF certificate will be required for invoices issued in the offline modes under specific circumstances.
E-invoicing will not completely replace SAF-T (JPK – Jednolity Plik Kontrolny) in Poland, but it will eliminate the need for JPK_FA reporting for invoices issued via KSeF. JPK_FA is a standardized electronic file containing sales invoice data that Polish businesses must submit to tax authorities upon request.
VAT Compliance in Poland: An Overview for Businesses
Poland VAT compliance can be a tall task for those yet to devise a future-proof strategy. Considering legislation changes frequently and the ongoing phased implementation of e-invoicing, it takes a lot of time, money and energy to meet your obligations.
This is your overview of all the tax compliance rules applicable in Poland, covering mandates and requirements such as VAT, SAF-T (JPK) and e-invoicing via KSeF. Add this page to your compliance toolbelt so you can understand and meet your obligations – both now and in the future.
While Poland does not have an Insurance Premium Tax (IPT) regime, it does have some parafiscal charges that are applicable to the insurance premium.
The Fire Brigade Tax (FBC) is applicable in special cases. There is also a so-called Financial Ombudsman Charge (FOC) to be settled online and paid to the Polish Financial Ombudsman Office on a yearly basis. This charge is applicable for all insurance companies operating under Freedom of Services (FOS) or Freedom of Establishment (FoE) in Poland as well as for Domestic Insurance Companies.
Previously, Insurer Ombudsman Charge (IOC) applied to all 18 classes of non-life insurance and life insurance policies. It was replaced by the Financial Ombudsman Charge (FOC) in January 2023.
Import VAT in Poland
The act of importation is a taxable event for which VAT is chargeable in Poland.
There is an option to use postponed accounting on imports. Poland introduced the option to defer import VAT as of 1 July 2020, enabling businesses to declare the tax through the VAT return without any cash payment. This mechanism is a great cash flow for the company as it doesn’t have to advance the VAT at Customs.
Taxable persons can use the mechanism, irrespective of whether the goods are subject to simplifications from the EU Customs Codes. To use the deferment mechanism, taxpayers must have a clear history of recent VAT compliance.
Invoicing requirements in Poland
Polish VAT invoices must be issued no later than the 15th day of the month after the taxable supply, and no earlier than 30 days before the supply of goods or completion of a service.
The electronic invoice will be considered issued on the day it is sent to KSeF, i.e. at the moment when it enters the system. When a structured invoice is assigned a KSeF number (unique ID), which contains the date of issue, it becomes legally valid. The issuance date is also in the Official Receipt Certificate (UPO).
One Stop Shop (OSS) has been effective in Poland since 1 July 2021, aiming to simplify VAT obligations for companies involved in distance selling.
Its main benefit is that a supplier can choose to account for the VAT due under OSS, which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU.
As a result, the company is required to register for VAT in only one EU Member State instead of registering for VAT in all EU Member States in which it operates – provided that the pan-EU threshold of EUR 10,000 in intra-EU distance sales to consumers is exceeded.
OSS can be used by businesses established in and outside the EU. If a supplier or a deemed supplier decides to register for OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under OSS.
Where the Member State of identification is Poland, the taxable person is entitled to file a notification to II Urzad Skarbowy Warszawa Srodmiescie by electronic means.
The forms for the EU OSS procedure are as follows:
VIU-R – notification form
VIU-DO – Form of the return for VAT settlements, filed for each quarter by the end of the month following a given quarter
The forms for non-EU OSS procedure are as follows:
VIN-R – Notification form
VIN-DO – Form of the return for VAT settlements, filed for each quarter by the end of the month following a given quarter
If you need help, please contact us or find more information on our dedicated guide.
Registration for IOSS in Poland
Import One Stop Shop (“IOSS”) is effective as of 1 July 2021 and applies to B2C distance sales of goods from outside the EU.
Under the standard procedure, VAT is due on all commercial goods imported into the EU Member State (the country of destination).
The purpose of IOSS is to facilitate the declaration and payment of VAT due on the sale of low-value goods of consignment valued at less than EUR 150. If the IOSS is used, the importation into the EU is exempt from VAT.
When using IOSS in Poland, a taxable person without a registered seat in the territory of the EU must indicate Poland as the Member State of identification. The taxable person in charge of the supply, or the intermediary, is entitled to file a notification with the II Urzad Skarbowy Warszawa Srodmiescie electronically.
The forms for the IOSS procedure are as follows:
VII-R – Notification form of taxable person
VII-RP – Notification form of intermediary
VII-DO – Form of the return for VAT settlements, filed for each month by the end of the month following a given month
Intrastat is an obligation for certain businesses that trade internationally in the European Union, relating to the movement of goods across EU Member States.
While the requirements remain similar across the region, certain Member States have implemented rules differently and each has its own Intrastat threshold for reporting. Poland’s declaration threshold for 2024 is PLN 6.2 million for arrivals and PLN 2.8 million for dispatches.
The standard procedure for VAT returns in Poland includes monthly filing. Taxpayers deemed as ‘small’, however, can file VAT returns quarterly if they meet specific requirements. VAT returns can be submitted by the official portal or through approved software.
VAT returns need to be filed by the 25th of the month following the accounting period. This is of utmost importance as taxpayers can be financially penalised for failing to meet the deadline, as well as the potential to accrue statutory interest and potentially face legal proceedings.
Since October 2020, there has been a Uniform Control File (JPK_VAT) that is made up of a record section and a declaration section. This consolidates data that was included in VAT returns prior to the file’s introduction.
The standard VAT rate in Poland is 23%, though certain goods and supplies have reduced rates of 8% and 5% and some services are exempt from VAT altogether.
The VAT registration threshold for companies established in Poland is PLN 200,000.
There is no threshold on the VAT registration for foreign companies not established in Poland; they are required to register for VAT prior to making their first VAT-relevant supply in the country.
VAT applies to the supply of goods and rendering of services in Poland for consideration. VAT liability is money owed to the tax authority and is calculated by subtracting credits from the total amount of VAT a taxpayer has collected at the moment the VAT becomes chargeable.
The deadline for making the relevant VAT payment is the same as for submitting the VAT return part of the SAF-T, i.e., by the 25th day of the month following the month in which the tax point arises. VAT liabilities must be paid by bank transfer and in Polish zloty.
The Polish Tax Authorities require businesses established outside of the EU and having a VAT registration in Poland to appoint a fiscal representative in Poland. The fiscal representative can be an individual or a company, such as Sovos. The fiscal representative is jointly and severally liable with the taxpayer for the tax liability, which the fiscal representative settles on behalf of and for the benefit of that taxpayer in Poland.
It is worth noting that, since 23 February 2021, taxpayers established in Norway or Great Britain have not been obliged to appoint a fiscal representative when operating in Poland. The companies established in both Norway and Great Britain can register directly for VAT purposes in Poland. This entails that the legal representative of the company can sign the registration form without any involvement from the Polish established Company or an individual acting in the capacity of a fiscal representative.
An EU business is not required to appoint a fiscal representative to register for VAT in Poland, but it may choose to do so.
The threshold for VAT registration for Polish-established businesses is PLN 200,000 (about EUR 46,000).
The VAT registration limit may apply either:
Retrospectively: The value of supplies of goods or services exceeded PLN 200,000 in the preceding tax year
Prospectively: At the start of business, the value of supplies of goods or services is expected to exceed PLN 200,000
Businesses operating in Poland may additionally opt to register for VAT regardless of reaching the threshold or if their operations comprise only VAT-exempt activities.
Non-established businesses – foreign businesses without a place of business in Poland – must register for VAT in Poland when making taxable supplies of goods or services in Poland. They are exempt from registration when they exclusively supply the following services:
Services and goods where the Polish purchaser pays tax under the reverse charge mechanism
Certain services that are subject to a zero rate (e.g., services supplied within Polish seaports, connected with international transport, services of air traffic control rendered for foreign providers of air transportation)
How Sovos can help with VAT compliance in Poland
The varied nature of tax obligations in Poland means compliance can be a resource-heavy task – especially when you consider the high probability of future updates and implementations. Choosing Sovos, a single vendor with global and local tax expertise, allows you to future-proof compliance.
Reclaim your time so you can focus on growing your business by speaking with our expert team today. Compliance is our concern.
Liechtenstein is one of many countries with Insurance Premium Tax (IPT) requirements, specifically the Swiss Stamp Duty and Liechtenstein Insurance Levy.
This blog provides an overview of IPT in Liechtenstein to help insurance companies remain compliant.
What kind of taxes are applicable in Liechtenstein on insurance premium amounts?
In Liechtenstein, there are two types of taxes that apply to premium amounts received by insurance companies:
Swiss Stamp Duty (CHSD)
Liechtenstein Insurance Levy (LIL)
These taxes complement each other. LIL is only applicable if CHSD is not applicable.
Swiss Stamp Duty is applicable in Liechtenstein based on Customs Union Treaty of March 29, 1923, which regulates the federal rules of stamp duties. Liechtenstein levy on Insurance premium amounts only applies if the Swiss stamp legislation does not apply.
It is necessary to highlight that Liechtenstein is a member of the EEA. As a result, the Location of Risk provisions outlined in the Solvency II Directive apply to LIL.
Therefore, to determine whether a premium amount triggers LIL, the rules of the referred Directive should be applied. This is not the case for Swiss Stamp Duty.
Premium payments made by Liechtenstein resident policyholders and/or to insurance companies based in Liechtenstein are generally subject to Swiss Stamp Duty.
What are the tax rates in Liechtenstein?
Premiums on non-life insurance policies are taxable at the rate of 5% and life policies at a rate of 2.5%, unless one of the exemptions listed in the regulations apply. These rates and exemptions apply to both CHSD and LIL.
Examples of exemptions include:
Policies covering accident
Transport of goods
Unemployment insurance
Hail insurance
Livestock insurance risks
Reinsurance policies
What is the basis of a CHSD and LIL calculation in Liechtenstein?
For the Liechtenstein Insurance Levy, the taxable basis is the premium payments based on an insurance relationship created by an insurance policy where the location of risk is deemed to be in Liechtenstein.
Whereas, for the Swiss Stamp Duty, the taxable basis is the premium payments for insurance:
based on a domestic portfolio of a domestic Liechtenstein insurer
that are paid by a domestic policyholder having an insurance contract with a foreign insurer
What are the CHSD and LIL filing and payment frequencies in Liechtenstein?
CHSD is filed on a quarterly and paid alongside the submission of the tax return. On the other hand, LIL is due biannually.
Each return is due within 30 days following the last day of the reporting period.
What are the penalties and interest for CHSD and LIL in Liechtenstein?
In case of late payment, a default interest should be paid on the amounts paid late. The interest rate is determined by the Swiss Federal Department of Finance.
What are the challenges for Insurance Premium Tax in Liechtenstein?
The main challenge is to determine which tax is due, CHSD or LIL. Secondly, it is challenging to determine whether the premium amount and the risk covered are exempt from taxation. The list of exemptions is long.
If LIL is due, these returns can only be filed by a fiscal representative based in Liechtenstein. It can be challenging to find one locally.
VAT Compliance in Romania: An Overview for Businesses
Romanian VAT Compliance can be described as a layered system conflated with different declarations and requirements, from SAF-T obligations to electronic invoicing. In this page, businesses aiming to remain compliant and looking to know the most up to date news, can find an overview of the main Romanian VAT rules. Scroll down to learn about Romanian VAT compliance requirements and how to remain compliant.
Romania is a complex country for VAT rules, with many elements that companies need to be aware of. These include:
Periodic VAT return (Decont de taxa pe valoarea adaugata)
Monthly 25th day of the month following the end of the tax period
Quarterly 25th day of the month following the end of the tax period
Romanian Domestic Supplies & Purchase listing (Declaraţie informativă privind livrările/prestările şi achiziţiile efectuate pe teritoriul national – D394)
Monthly 30th day of the month following the end of the tax period
SAF-T (Declarației informative D406)
Monthly/Quarterly
SAF-T Stocks (Declarației informative D406)
On-demand – a minimum 30-day deadline
SAF-T Assets (Declarației informative D406)
Deadline for the submission of Financial Statements for the year
EU Sales and Purchases List
Monthly 25th day of the month following the end of the tax period
Intrastat
Monthly 15th day of the month following the relevant month
VAT rates
19% 9% 5% 0% and Exempt
Intrastat thresholds
Arrivals: RON 1 million Dispatches: RON 1 million
VAT rules in Romania
Romania is at the forefront of VAT compliance, having implemented a broad range of requirements, from SAF-T obligations to e-invoicing. You can find more information on the various rules and requirements here:
Taxable persons established in Romania are required to register for VAT purposes if their annual turnover exceeds the threshold RON 300,000 (EUR 88,500). Established entities that don’t meet the threshold may opt to register for VAT purposes.
Non-established entities are required to register for VAT purposes, regardless of annual turnover, when practicing certain activities such as Intra-Community transactions or exports.
When does VAT liability apply in Romania?
In Romania, VAT liability encompasses various transaction types – including, but not limited to, the following:
Supplies of goods and services for consideration with place of supply in Romania
Imports of goods
Intra-Community acquisitions of goods
Invoicing requirements in Romania
Legislation in Romania states that invoices, paper or electronic, must include the following information:
Invoice unique serial number
Invoice/delivery date
Supplier identification
Recipient identification (when they are taxable subjects as well)
Description of the goods or services provided
Taxable amount
Applicable tax rate
Since January 2024, the Romanian B2B e-invoicing and e-reporting mandate has applied to established taxpayers and VAT registered entities – concerning all B2B transactions with place of supply in Romania.
From January 2024, VAT-registered entities must report their invoices (regarding domestic B2B transactions) to the RO e-Factura platform within five working days of issuance.
Established taxpayers are equally required to electronically report their invoices from January 2024.
The tax authority provided a three-month grace period where no penalties will apply, meaning that penalties will be imposed from April 2024.
From July 2024, the e-reporting obligation will shift to an e-invoicing requirement for transactions between established taxpayers. If established taxpayers fail to issue the invoice electronically, the invoice must be reported within five calendar days to the RO e-Factura platform.
In addition to the invoicing content requirements, which must also be included in electronic invoices, the e-invoice must comply with certain technical requirements as well.
You can find more information about Romania’s e-invoicing rules on our dedicated Romania e-invoicing page.
Registration for OSS in Romania
The EU established the One Stop Shop (OSS) in July 2021, implementing an EU-wide 10,000-euro threshold for VAT and simplifying cross-border online sales in the region simpler. This is part of the EU VAT e-commerce package.
Following the applicable Romanian VAT rules, the following fall within the scope of the OSS regime:
Entities established in Romania
Non-EU taxable persons with a fixed establishment in Romania
Entities which have fixed establishments in more than one EU Member State including Romania)
These entities may choose Romania as their Member State of registration for OSS purposes.
Non-EU entities, which do not have a fixed establishment in the European Union, may also register in Romania for OSS purposes – only if carrying out distance sales of goods when the goods are dispatched from Romania or any other EU Member State.
In addition to the OSS registration, taxable persons may also apply to the Import One-Stop Shop (IOSS) in Romania which concerns B2C distance sales of goods from outside the region.
Intrastat, EU Sales and Purchases List and Domestic Supplies & Purchase listing (form 394) in Romania
Intrastat returns – which are related to the movement of goods in the European Union – are submitted in Romania if the taxable person exceeds the provided threshold.
Even though Intrastat requirements remain similar across the EU, each Member State may implement rules differently. Our Intrastat Guide is a useful tool for navigating cross-border trading in the EU.
In Romania, the Intrastat threshold for both arrivals and dispatches of goods is RON 1,000,000 (around EUR 201,000). The Intrastat return must be submitted by the 15th day of the following month.
The EU Sales and Purchases List is submitted in Romania by taxable persons carrying out Intra-Community supplies or purchases of goods or certain services. The return must be submitted by the 25th day of the following month and is not required to be submitted in tax periods where no transactions occurred.
The Domestic Supplies & Purchase listing (form 394), first implemented in July 2014, is an additional return to be submitted periodically by all VAT-registered entities in Romania. The return includes data on domestic supplies and purchases between VAT-registered entities and must be submitted by the 30th day of the month following the end of the tax period.
The Romanian periodic VAT return – Decont de taxa pe valoarea adaugata – is submitted on a monthly or quarterly basis, if the taxpayers’ annual turnover remains below the equivalent in RON of 100.000 EUR. The returns must be submitted electronically by the 25th day of the month following the end of the applicable tax period.
The VAT return must include the amount of the deductible VAT as well as the VAT charged in the tax period.
Taxable persons established in Romania are required to register for VAT purposes if the RON 300.000 (EUR 88.500) annual turnover threshold is exceeded. There is no threshold for non-established entities.
Taxable persons not established in the EU that fall under the obligation to register for VAT purposes in Romania are obliged to appoint a fiscal representative.
Yes. Since January 2023, Romania‘s mandatory e-transport system has monitored the transport of certain goods in the national territory. The e-transport system operates in parallel with Romania’s e-invoicing system. For more information read our in-depth blog about the e-transport system in Romania.
Help for VAT compliance in Romania
Looking back at this overview, it becomes clear just how fast-paced Romania’s developing VAT compliance requirements are. Sovos helps customers navigate difficult VAT compliance landscapes worldwide, by leveraging our global coverage.
We take care of compliance so you can concentrate on growing your business.
The Dominican Republic is just one of the many nations that are turning to e-invoicing. From 2024, established taxpayers will be required to meet strict new rules for how they execute business transactions.
Understanding what’s to come is vital, as is choosing a partner with the technical know-how and foresight to ensure compliance during change. Bookmark this page to stay updated with developments in e-invoicing in the Dominican Republic, written by regulatory experts.
At a glance: e-invoicing in the Dominican Republic
Dominican Republic B2G e-invoicing
CTC Type E-invoice clearance according to the calendar, starting with the first group in May 2024
Network The system’s web services are a set of protocols and standards that, using extensible markup language (XML) and REST API, allow the exchange of data between the heterogeneous invoicing software of taxpayers and the tax authority through an environment defined as {Environment}, finding various services in electronic invoicing
Format Electronic invoices will be sent in an XML file, which consists of a plain text record that uses a series of custom tags to describe both the structure and other characteristics of the document
eSignature Requirement A digital certificate for Tax Procedure, issued and signed digitally, by a certification entity authorised by INDOTEL or a certificate with an institutional link is required
Archiving Requirement 10 years
Dominican Republic B2B e-invoicing
CTC Type E-invoice clearance according to the calendar, starting with the first group in January 2024
Network The system’s web services are a set of protocols and standards that, using XML and REST API, allow the exchange of data between the heterogeneous invoicing software of taxpayers and the tax authority through an environment defined as {Environment}, finding various services in electronic invoicing
Format Electronic invoices will be sent in an XML file, which consists of a plain text record that uses a series of custom tags to describe both the structure and other characteristics of the document)
eSignature Requirement A digital certificate for Tax Procedure, issued and signed digitally, by a certification entity authorised by INDOTEL or a certificate with an institutional link is required
Archiving Requirement 10 years
E-invoicing regulation in the Dominican Republic
The electronic invoicing regulation in the Dominican Republic was published on 17 May 2023 and lays out the specific expectations and requirements for taxpayers.
Firstly, the e-invoicing regulation applies to natural and legal persons, both public and private. It also applies to entities without legal personality domiciled in the Dominican Republic that carry out the transfer of goods, delivery in use or provision and lease of services for consideration or free of charge.
All issuers of electronic invoices are to be recognised and authorised as such by the DGII and have a digital certificate for Tax Procedure issued by an entity authorised by the Dominican Institute of Telecommunications (INDOTEL).
Electronic invoices must be compliant with a set format and are to be sent to the authority and electronic receiver. Each e-invoice will have a Printed Representation (RI) of the electronic tax receipts (e-CF) which will be delivered physically to exceptional non-electronic receivers.
The regulation outlines three forms of acceptable e-CF issuance:
Using self-developed systems, following authorisation from the DGII
Using e-invoicing service providers that have been certified for compliance
Using the DGII’s free technological facility (known as free billing)
Timeline: e-invoicing adoption in the Dominican Republic
It can be difficult to stay informed about the changes to e-invoicing’s implementation in the Dominican Republic. This simple timeline details the key developments:
February 2019: Pilot phase for e-invoicing commences with 11 large companies
September 2022: Draft law filed for the Senate’s approval
18 May 2023: The e-invoicing mandate became applicable across the nation
15 January 2024: Group 1 of large national taxpayers need to have implemented e-CF by now
15 March 2024: Group 2 of large national taxpayers need to have implemented e-CF by now
15 May 2024: Group 3 of large national taxpayers and Government Institutions classified as Large National Taxpayers need to have implemented e-CF by now
15 May 2025: E-invoicing will become a requirement for large local and medium-sized taxpayers
15 May 2026: E-invoicing will become a requirement for small, micro, unclassified taxpayers and the remaining Government Institutions
Who must use an e-invoice in the Dominican Republic?
Both issuing and receiving electronic invoices are currently voluntary for both B2B and B2G transactions in the Dominican Republic. This will change in 2024 when the first wave of mandatory requirements rolls out, specifically to large taxpayers.
View the timeline below to find out exactly when e-invoicing will be obligatory for different taxpayer groups.
How to choose the right e-invoicing software in the Dominican Republic
The impending launch of electronic invoicing in the Dominican Republic brings along the need to find a system and strategy that works. Strategy isn’t one-size-fits-all; compliance is imperative and, subsequently, so is finding a solution that understands your company.
Sovos is a global compliance partner for organisations of all shapes and sizes, and our solutions not only help you to comply but also free up resources so you can focus on what really matters.
Another aspect of compliance to be mindful of is that requirements change. It’s unavoidable. Instead of jumping between solutions, organisations that partner with Sovos have peace of mind that they will be compliant in the present and meet any new demands that come in the future.
e-CF, otherwise known as an electronic tax receipt, is the Dominican Republic’s version of an electronic invoice. Taxpayers must submit e-CFs to the nation’s tax authority, DGII, for approval.
Once you have issued an electronic invoice, request an e-CF sequence and the DGII will validate the file. Once the tax authority has validated the e-CF, you will receive authorised versions.
Regarding e-invoicing in the Dominican Republic, the Acknowledgement of Receipt only confirms that the electronic invoice has been received. The Commercial Approval indicates whether the e-CF has been accepted or rejected.
In less than six months, Poland is going to introduce its long-awaited CTC clearance e-invoicing mandate – a tax reform that will impact a large amount of businesses.
It has been possible to issue and receive e-invoices voluntarily via Krajowy System E-Faktur (KSeF) since January 2022, but from 1 July 2024 it will become mandatory for suppliers and buyers that are in scope of mandatory e-invoicing to do this via KSeF.
A detailed understanding of the new regime, plus timely and proper preparation, is critical for compliance. Whilst there is a six-month grace period on financial penalties, non-compliance can negatively impact your business in many other, often unexpected, ways.
In this 45-minute deep-dive webinar, Marta Sowińska from our Regulatory Analysis and Design team will cover:
Introduction to the mandatory e-invoicing reform in Poland
Scope of the clearance mandate: domestic vs. cross-border transactions
Key challenges:
B2B vs. B2C transactions
Latest updates on QR codes
Emergency models – also known as offline modes
Key dates and implications of non-compliance
Join us on 8 February at 2pm GMT | 3pm CET for a thorough review of the Polish KSeF e-invoicing mandate and the opportunity to submit your questions.
As tax authorities continue to digitize processes in their mission to reduce fraud and close their VAT gaps, they are introducing requirements that provide greater visibility into a company’s financial operations in the form of Continuous Transaction Controls (CTC).
It would be a mistake to think that being prepared to meet obligations in one of the countries where you operate can simply be replicated in another – CTCs are far from a ‘one-size-fits-all’ solution.
Join us on 24 January 2024 in our latest quarterly VAT Snapshot webinar series where regulatory experts Dilara Inal and Marta Sowinska will examine how tax authorities in Poland, Romania, Israel, Greece and Spain – all simultaneously implementing CTC regimes – are doing so with different sets of requirements.
Don’t miss this opportunity to learn more about these unique regimes and what they mean for your business.
