As indirect transaction tax becomes more complex and digitally enforced, organisations are increasingly challenged by limited visibility into the data that underpins compliance. Tax-relevant information is often fragmented across AP, AR, ERP, billing and e-invoicing systems, creating inconsistency and risk well before returns are filed. This webinar explores the business impact of disconnected transaction data, from errors in tax calculations and manual reconciliation to increased audit pressure and reduced confidence in reported figures. Our experts will outline what effective end-to-end transaction data control looks like and demonstrate how Sovos Intelligence unifies data, identifies risks in real time and enables proactive, automated compliance.
Register and see this webinar here.
As tax authorities push deeper into digital enforcement, VAT and e-invoicing are moving into a phase defined by real-time control, standardised data and increased transparency. As 2026 unfolds, the real challenge for businesses is not just tracking change but interpreting what it reveals about the direction of indirect tax compliance. This session explores how recent VAT rate changes, evolving reporting requirements and shifting CTC timelines point to a broader regulatory direction.
We’ll examine VAT rate changes planned for 2026, what Bulgaria’s SAF-T introduction reveals about rising expectations for transactional data and how Poland’s JPK VDEK updates foreshadow the rollout of KSeF 2.0. We’ll also assess the impact of CTC postponements announced in 2025 budgets, including Spain’s Verifactu and Portugal’s QES and Accounting SAF-T, and what these delays tell us about enforcement strategy and market readiness. We’ll conclude with a strategic view of global e-invoicing mandates, identifying convergence patterns and outlining what organisations should be preparing for next as digital VAT controls continue to mature.
You’ll learn more on:
To watch the Webinar, register here.
How Tax Compliance Is Changing in SAP
Tax compliance in SAP is no longer just an IT decision. It’s a strategic risk decision.
As governments shift to real-time, transaction-level enforcement, SAP customers are being forced to rethink how tax compliance fits into their S/4HANA, Clean Core, and data governance strategies.
Many organizations are evaluating ERP-native approaches, while others are expanding their capabilities to account for authority-led, end-to-end compliance models designed to keep pace with continuous mandates. Each path comes with tradeoffs in cost, risk, scalability, and long-term agility.
In this session, Sovos tax and SAP experts explore how SAP customers should think about this decision, not from a product perspective, but from an enterprise architecture, risk, and operating model standpoint.
You’ll learn:
-Why tax compliance is shifting from an internal ERP function to an externally enforced, authority-led model
-What SAP customers should consider when using ERP-native tools for digital reporting and mandates, and what capabilities to enhance and complement those tools
-The hidden complexity behind e-invoicing, SAF-T, and continuous transaction controls
-How Clean Core principles intersect with tax data, controls, and audit exposure
-Key questions IT, Finance, and Tax leaders should be asking before choosing a compliance path
-How today’s compliance decisions can impact transformation risk for years to come
This session is designed for IT and ERP leaders, Finance and Tax executives, SAP CoE and Clean Core program owners, and enterprise architects responsible for compliance strategy, and is especially relevant for organizations preparing for the 2026–2027 regulatory expansion or actively navigating an S/4HANA transformation.
To Watch the Webinar, register here.
North Macedonia is poised to advance in its digital transformation journey with the launch of its e-invoicing pilot program on 1 January 2026.
In July 2025, the Public Revenue Office (PRO) and the North Macedonian Ministry of Finance announced the planned rollout of a mandatory national e-invoicing system (e-Faktura) for all non-cash transactions, including B2B and B2G.
The e-Faktura reform will become fully mandatory by Q3 of 2026 (around 1 October) and aims to modernise invoicing by providing a centralised, real-time platform, aligning with EU standards. This mandate demonstrates North Macedonia’s commitment to implementing its own Continuous Transaction Controls (CTC) model.
This page provides an ideal overview of North Macedonia e-invoicing requirements. Bookmark it to stay ahead of regulatory changes.
B2B e-invoicing in North Macedonia is set to become mandatory following pilot tests with selected companies starting on 1 January 2026. These e-invoices will be submitted via the e-Faktura system, with real-time validation through the Public Revenue Office (PRO).
This centralised platform will be used for issuing, receiving and validating B2B e-invoices, aiming to improve transparency and traceability for VAT reporting.
North Macedonia aims to transition from voluntary to mandatory use of e-invoicing through the e-Faktura system for B2G transactions by Q3 2026, covering all VAT-registered businesses in the country.
This mandate will require structured electronic formats and digital signatures for compliance, with the PRO verifying each e-invoice and assigning it a unique code. It then automatically delivers the e-document to the recipient following validation.
North Macedonia e-invoicing via the national e-Faktura system will require businesses to process all e-invoices through the platform. E-invoices must be in a structured electronic format (XML, UBL) for digital processing and submitted to the PRO’s central system for real-time validation, which will check compliance and assign unique IDs.
B2B e-invoices will require a digital signature, and when verified, the e-invoice will be automatically sent to the issuer and recipient.
Businesses need to prepare to adapt their invoicing process to the new North Macedonia e-invoicing standards, including preparing accounting software for structured e-invoicing generation and submission in the required formats, and integration with the central PRO platform.
Sovos can help. Get in touch with our tax experts to make sure your business aligns with the new North Macedonia e-invoicing standards and requirements.
Here are the key dates in North Macedonia’s journey towards mandatory e-invoicing:
In preparation for the mandatory implementation of North Macedonia e-invoicing in Q3 2026, businesses must be set up technologically and logistically ready to comply.
E-invoicing will become mandatory in North Macedonia in Q3 2026 (estimated to be 1 October 2026), following a pilot test phase that begins on 1 January 2026.
E-invoices in North Macedonia will need to follow a structured electronic format (like XML/UBL), and not PDFs.
VAT-registered businesses in North Macedonia that do not comply with the new mandatory e-invoicing rules may—subject to confirmation—be affected by fines, loss of VAT deduction rights, audits, and exclusion from government procurement.
Moldova is currently in a transition period regarding its adoption of mandatory e-invoicing.
The nation plans to fully implement obligatory e-invoicing for B2B transactions by October 2026, following a January 2026 pilot. The electronic invoicing system will be built on the new national “e-Factura” platform established by the Moldovan Ministry of Finance.
Mandatory B2G e-invoicing has been in place since 2023, along with voluntary services. The new mandate aims to propel the economy into the digital age, reduce costs for SMEs, increase compliance and boost transactional transparency.
The new legislation will introduce Virtual Cash Registers and electronic receipts (eBon), allowing digital receipts via smartphone and tablet apps sent via email or SMS, thereby simplifying the process.
This page provides an overview of Moldova e-invoicing requirements. Bookmark it to stay ahead of regulatory changes.
The national platform, known as the FISC e-Factura system, has been in place for voluntary B2B e-invoicing use since 2014. Moldova has been steadily preparing to introduce mandatory B2B e-invoicing (using e-Factura) with a full rollout planned for 1 October 2026, following a pilot phase starting January 2026.
This expands on the existing B2G e-invoicing and voluntary services, aiming for a national, standardised system that will require both suppliers and recipients to be registered.
Sovos can help businesses in Moldova prepare for mandatory B2B e-invoicing, ensuring compliance with the new platform’s requirements.
B2G e-invoicing has been mandatory in Moldova since 2023, requiring suppliers to public entities (and the National Medical Insurance Company, or CNAM) to use the national e-Factura platform for electronic invoices.
The e-invoices must conform to the local XML format and follow the process of issuing and receiving e-invoices via the platform (including adhering to the standard six-year archiving period).
Moldova joined an eDelivery pilot with Ukraine in December 2021 as the first step to integrating with the Peppol network. This pilot enabled the first iteration of cross-border electronic document exchange with EU countries (facilitated by the EU4Digital facility), which positioned Moldova for greater e-invoicing compliance.
Moldova then became the third country in the Eastern Partnership to join the Peppol eDelivery network, enabling businesses in Moldova to exchange electronic documents like e-invoices with any other connected party globally, provided both are registered with a Peppol Access Point. The network guarantees interoperability and secure, standardised electronic document exchange.
Learn more about Peppol e-invoicing.
Moldova e-invoicing follows a framework that is compliant with Peppol eDelivery network, aligning with European standards as it develops its mandatory B2B e-invoicing system.
All companies and businesses in Moldova should submit e-invoices as part of the current voluntary and B2G system, primarily in the national local XML format via the national e-Factura platform.
Explore the key dates in Moldova’s mandatory e-invoicing journey:
E-invoicing in Moldova is well on its way to full mandated adoption, and 2026 will be one of the most crucial development years for businesses as they navigate the new B2B changes in electronic invoicing.
Compliance can be complex, as amendments and mandates can happen without notice. Thankfully, Sovos are on hand to be your compliance partner, ensuring your e-invoicing is handled correctly.
E-invoicing is becoming mandatory in Moldova as of 2026. The full national mandate for all businesses (B2B, B2C, B2G) is expected to launch by 1 October 2026, following a pilot phase in January 2026. This mandate will expand on existing B2G mandates and voluntary e-Factura systems.
Moldova uses an XML format for its official e-invoicing system (e-Factura). These e-invoices must also be digitally signed to ensure authenticity.
Yes, e-invoices in Moldova require a digital signature to ensure authenticity and integrity, with the system becoming more robust as Moldova aligns with EU standards for digital transactions and B2G e-invoicing.
30 March – 1 April , 2026
Park Hyatt Dubai, Dubai Creek Club St Port Saeed - Dubai
We’re proud to sponsor the E-invoicing Exchange Summit. As the Middle East continues to establish itself as a global fintech hub, with the UAE at the forefront of digital tax transformation. The 2026 E-Invoicing Exchange Summit will explore regional e-invoicing requirements, real-time compliance readiness and the technologies shaping the future of digital taxation. Featuring an exhibition of leading solution providers and insights from Alex Pavel on why vendor foresight not deadlines defines real-time readiness, the Summit offers a forward-looking perspective on compliance in an increasingly connected economy.
To review the agenda and registration details click here.
Park Hyatt Dubai, Dubai Creek Club St
Port Saeed – Dubai
Bosnia and Herzegovina currently operates on a voluntary e-invoicing basis, but changes are coming.
In the past two years, a draft e-invoicing law was published, accepted and is now with Parliament for further procedure, with a proposed mandatory e-invoicing start date of 2026.
This page provides an overview of e-invoicing requirements. Bookmark it to stay up to date with regulatory changes.
Businesses in Bosnia and Herzegovina are not currently obligated to provide or submit e-invoices. However, a draft law to make e-invoicing mandatory is currently underway with a view to it beginning on 1 January 2027, although official implementation timelines have not yet been announced.
Businesses in Bosnia and Herzegovina are not currently obligated to provide or submit e-invoices. However, a draft law to make e-invoicing mandatory is currently underway with a view to beginning on 1 January 2027, although official implementation timelines have not yet been announced.
This mandate will require e-invoicing, real-time reporting, compliance with structured electronic formats, and the use of approved electronic fiscal systems (EFS) for transactions between businesses.
The aforementioned Draft Law will also include an e-invoicing mandate for B2G transactions.
Businesses in Bosnia and Herzegovina will utilise a central platform that ensures invoices comply with EU standards, can be automatically processed and facilitate verification.
The goal of mandatory B2G e-invoicing is to combat tax evasion and enhance transparency in transactions.
As Bosnia and Herzegovina move towards mandatory real-time e-invoicing, the requirements will be as follows:
Here is the timeline of Bosnia and Herzegovina e-invoicing.
As Bosnia and Herzegovina move steadily towards mandatory electronic invoicing, it’s essential to prepare properly so you can remain compliant for B2B and B2G transactions.
Sovos can help by serving as your sole compliance partner for e-invoicing. We take care of your tax obligations so you can focus on your business. Get in touch to learn more.
As of current plans, e-invoicing will become mandatory in Bosnia and Herzegovina for B2B and B2G transactions on 1 January 2026.
Albania introduced a comprehensive fiscalisation model known as “Audit System” or “e-Fiskal” (fizkalizimi), a mandatory, real-time e-invoicing system in phases in 2021.
This system requires B2G, B2B and B2C transactions to be submitted through Albania’s Central Information System (CIS) platform, which is regulated by the General Directorate of Taxes (GDT).
This system seeks to improve efficiency, modernise tax collection, and combat fraud while aligning with EU standards.
This page provides an ideal overview of e-invoicing requirements. Bookmark it to stay ahead of regulatory changes.
As of 2018, all VAT-registered businesses in this country are required to issue e-invoices via the e-Fiskal system.
In 2021, the system was expanded, meaning that all e-invoices must now be transmitted in real-time to the Central Information System (CIS), a centralised electronic invoicing and fiscalization platform in Albania managed by the General Directorate of Taxes (DPT).
Similar to B2B transactions, all businesses in Albania must issue e-invoices in real-time when processing or conducting transactions with public authorities and government entities. These e-invoices must be submitted to CIS in real-time.
While Albania e-invoicing is mandatory with its own fiscalistion model, it is also integrated within the Peppol network—aligned with EU standards and processes.
Albanian businesses can use Peppol Access Points to exchange e-invoices with international companies, governments and customers in other Peppol-connected countries and territories. Albanian businesses can use Peppol Access Points to exchange e-invoices with international companies, governments and customers in other Peppol-connected countries and territories.
Peppol is an international framework that facilitates cross-border and intergovernmental trade.
Learn more about Peppol e-invoicing.
Albania e-invoicing follows a structure that ensures compliance with CIS and GDT.
All companies and businesses in Albania are required by law to use certified software to prepare and issue e-invoices. Furthermore, all e-invoices must be submitted to CIS, which is maintained by the National Agency for Information Society (AKSHI).
The CIS system accepts formats such as UN/CEFACT Cross-Industry Invoice (XML Schema 16B) and UBL 2.1 (ISO/IEC 19845:2015). E-invoices must also be stored for a minimum of five years as part of the archiving obligations.
The CIS portal is also managed by the General Directorate for Tax (DPT), which is responsible for verification and assigning unique codes known as NIVF (Invoice Unique Verification Number). A PDF invoice is then issued with a QR code of the NIVF, and can then be saved, downloaded or printed via the CIS portal.
Discover the key dates in Albania’s mandatory e-invoicing journey:
E-invoicing in Albania has quickly evolved since its first regulation in 2018, culminating in the mandates introduced in 2021.
International e-invoicing compliance can be complex, as mandates can happen frequently and without notice. Sovos can help.
Contact us to learn how to free yourself up by choosing a compliance partner who can handle tax and e-invoicing for you, both now and as changes happen.
Albania’s e-invoicing is mandatory for B2G, B2B and B2C cashless transactions as of 2021, as part of the e-Fiskal or Audit System. All e-invoices must be transmitted in real-time to the Central Information System (CIS), a centralised electronic invoicing and fiscalisation platform of Albania.
There are specific exemptions from Albanian e-invoicing requirements, including:
The accepted formats for Albania e-invoicing are UN/CEFACT Cross-Industry Invoice (XML Schema 16B) and UBL 2.1 (ISO/IEC 19845:2015), both of which are XML formats widely used in the EU for e-invoicing purposes.
In this instalment of our VAT Snapshot series, our experts will chart the latest government publications, timelines and scope changes, keeping you up to speed on what’s confirmed, what’s proposed, and where guidance is evolving in Poland, France, Greece, UK, UAE and Spain.
March 11-12, 2026
Marriott Hotel Leidseplein, Stadhouderskade 12, 1054 ES Amsterdam, Netherlands
Join Sovos at the 19th Group Indirect Tax Exchange to gain expert insights into the industry adoption of e-invoicing and the challenges of e-reporting. We will also be hosting a dedicated session with Kelly Muniz, Senior Regulatory Counsel, Sovos, on Keeping Up with Legislative Changes and Shifting Local Reporting Requirements, covering:
Stay ahead of the latest e-invoicing conversations and make the most of this leading conference and networking event. Reserve your ticket today!.
To review the agenda and registration details click here
Marriott Hotel Leidseplein, Stadhouderskade 12, 1054 ES Amsterdam, Netherlands
European manufacturers and supply chain teams are facing growing VAT complexity as real time reporting expands and scrutiny of cross-border movements increases. In this webinar we’ll simplify the latest rules impacting operational flows from import VAT and call-off stock to inventory management and reverse charge mechanisms. Our expert will share what these changes mean in practice and how to adapt processes to stay compliant and efficient across multiple jurisdictions. Join us to learn the key requirements shaping VAT compliance today and how to build a resilient, future-ready framework for your organisation.
Brazil’s tax system is undergoing a historic transformation, and businesses need to be ready. In this webinar, we’ll break down the key elements of the new Tax Reform and what they mean for organizations across different sectors.
Knowing how to calculate IPT and the corresponding parafiscal surcharges (hereinafter collectively referred to as IPT) is an art. Rules differ by national jurisdiction so ensuring compliance with IPT obligations is not just a regulatory requirement for insurers – it’s essential to avoid financial penalties and reputational risk.
That’s why it’s critical to have a clear understanding of which tax rules apply to the insurance products underwritten, and to stay informed about the specific requirements in each relevant jurisdiction.
This blog will provide an overview of IPT calculations, explaining how to calculate IPT, the different methods of calculation, IPT rates and exemptions, and more. If you’ve found yourself asking, “How is IPT calculated?” then read on, because this page is for you.
There are two basic methods for calculating the tax on insurance premiums in Europe:
These calculation models are just the basics; IPT regulations are built upon these models, adding several specific rules, which can make an IPT calculation fairly complex.
For the first calculation method, the Percentage model, one or multiple tax rates apply depending on the risks covered.
For example, businesses in Bulgaria can easily determine the tax amount by multiplying the taxable basis by the country’s 2% tax rate. This rate applies to all classes of businesses. However, in Italy or France, the applicable tax rate depends on the risks covered.
Several IPT calculations are based on this basic rate model but there are some models where the tax rate applies on the sum insured value and not on the premium amount.
In the second calculation method, the Fixed Amount Model, local regulations determine the tax amount that needs to be multiplied – usually per policy, but sometimes per insured person.
Irish Stamp Duty and Danish Guarantee Fund contribution are examples of this calculation method in practice.
While many factors can ultimately impact the IPT amount calculation, there are certainly some primary factors that many calculations will need to get right.
While each IPT calculation will vary based on the factors at play, we can provide a sample calculation to illustrate how the process can work.
The first step is to identify the risk category the policy falls under, as this will dictate the location of risk.
Determining the location of the risk(s) will determine the country of which the IPT calculation rules apply. Most European countries include a section in IPT regulations to determine the location of risk, citing the Solvency II EU Directive location of risks (LoR) rules.
The reporting currency is the currency in which the tax should be settled to the local tax office. If the premium amount in the policy is determined in a currency other than the reporting currency, then it is important to use the correct exchange rate. Exchange rate rules are not harmonised in the EU. It can be the national bank average monthly/quarterly rate, or rate on the last day of the reporting period.
The taxable basis is vital for determining the compliant IPT and parafiscal amounts. Look for the local legislation for the definition of the taxable basis. Taxable basis can be the net premium, the sum insured, the value as per the land registry, or net premium plus fees, commissions or even taxes.
Knowing the correct tax rate/fixed amount is vital. Search for the local IPT legislation, review the risk covered and determine the correct tax rate.
Depending on the risks covered, some countries also levy parafiscal charges on insurance premiums, impacting the total IPT amount to be paid. France is an example of a country that levies various surcharges on the premium amounts depending on the risk(s) covered.
It is also vital to determine which insurance premiums fall into an exempt class. Usually, risks covering international or exports class of businesses are exempt, such as export credit, or international goods in transit. Some of the EU countries exempt sickness policies too.
Lastly, it is essential to follow rounding rules when calculating the total IPT amount to be settled towards the local tax offices, because the settlement of the IPT amount can be rounded. In France, for example, you are required to round to the nearest whole EUR. In Hungary, IPT is declared in thousands HUF.
With IPT often being complicated to calculate, especially if you don’t know the nuances of the country where the location of risk sits, mistakes can be common.
There are simple mistakes like determining the wrong location of risk or using the incorrect or out-of-date IPT rates (e.g. incorrectly interpreted transitional rules), and misunderstanding exemptions.
More errors come from miscalculating the value of the premium or the sum insured or incorrectly applying surcharges.
There are rules taxpayers must abide by to comply with IPT regulations. Here is a selection of IPT rules for amount calculation.
Here are some examples of these specific rules:
As you can tell, IPT calculations can be complex—but they don’t need to be. If you are aware of the common pitfalls and the key considerations in these calculations, you can work out the amount payable with accuracy and confidence.
Knowing the rules and requirements of the country you are operating in is key, from the tax rate to how they require insurers to calculate Insurance Premium Tax. Non-compliance can be costly, both financially and reputationally, so be sure to put your best foot forward by knowing how to calculate IPT correctly.
Hungary is the only country that utilises a ‘pure’ sliding scale rate model to calculate its Insurance Premium Tax. The sliding scale model is a method of calculating IPT where the tax rate changes once the insurance premium exceeds a threshold. Malta, on the other hand, applies a mixture of fixed amount and sliding scale model.
Yes, there is generally a chance that Insurance Premium Tax (IPT) can be refunded on a cancelled policy. Refunds are done pro rata on policies that have been active for longer than the mandatory 14-day cooling-off period. There are exemptions from this general rule, with the best example being Italy.
While countries have their own nuances regarding IPT, the general rule of thumb in countries like the UK is that Insurance Premium Tax does not apply to reinsurance.
This is because countries like the UK want to avoid double taxation, as the original direct insurance policy is already subject to IPT.
No, IPT is not harmonised in the EU. Although the Solvency II EU directive provides some basic rules which are mandatory for EU countries to follow, the specifics of the IPT calculation, such as the rates and taxable basis are not harmonised.
Currently, the highest IPT rate in the EU is 30%, applying to certain policies in France. The highest generic IPT rate of 25.5% applies in Finland. The lowest IPT rate, not mentioning the exemptions, is the 1.4% IPT rate applied for certain specific policies in Belgium. The lowest generic IPT rate is 2% in Bulgaria.
Put simply, Insurance Premium Tax (IPT) is calculated as a percentage of the insurance premium. The percentage, also known as the IPT rate, depends on the type of insurance policy and the rates of the country to which the policy applies.
To calculate the IPT amount, you multiply the insurance premium by the appropriate tax rate. The insurer then adds the cost to the figure paid by the policyholder.
This calculation is the simplest, but it’s worth mentioning that there are various calculation methods e.g. fixed amount method, sliding scale methods.
There are various factors that need to be considered to compliantly calculate IPT. These factors include, but are not limited to, location of risk, the risk covered, the exchange rate, the definition of the taxable premium, the IPT and parafiscal tax rates and the exemptions.
European tax authorities are accelerating the move to real-time digital reporting, creating new rules and tighter deadlines for organisations. This session will break down the latest developments in Poland and Bulgaria, including Poland’s draft regulation aligning JPK_VAT with KSeF from February 2026 and Bulgaria’s mandatory SAF-T go-live in January 2026. With clear explanations and a short demo, Sovos’ experts will outline key requirements, practical impacts and how to generate, validate and submit accurate files. Join us to understand how these changes affect your reporting processes and how to prepare for a future-ready compliance strategy.
Unlike its geographical neighbour, France, the sovereign city-state of Monaco has not introduced any regulation for the mandatory use of electronic invoices.
The Principality currently follows a voluntary post-audit model, where e-invoices are allowed but not required.
Having chosen to adopt the principles of Council Directive 2010/45/EU through Ordinance 4.199 of February 20, 2013, which governs electronic invoicing between taxable persons, various methods are allowed for ensuring invoice authenticity and integrity.
Considering its status as a nation with less stringent tax rules than most, many anticipate that the country will continue not to require the use of e-invoices for its taxpayers. It’s not impossible, however.
Monaco e-invoicing requirements are relaxed—not requiring the transmission or secure signing of such electronic documents, for example—but there is a rule for voluntary e-invoices to be securely archived for 10 years.
This page provides all the necessary information for e-invoicing in Monaco.
Although Monaco is a sovereign state, it is considered part of the French VAT territory for customs and VAT purposes. As a result, VAT is applied on the same basis and at the same rates as in France, and transactions between entities in both countries are treated as domestic operations for VAT purposes.
However, when it comes to e-invoicing, Monaco is treated as a foreign country. This means that French taxpayers buying from or selling to Monegasque entities must e-report those transactions under France’s upcoming e-invoicing and e-reporting framework, but the e-invoicing requirement itself will not apply to Monaco-based businesses.
It is therefore essential to distinguish Monegasque entities that hold a French SIREN number – the registration number for businesses in France. These entities are considered to be established in France for VAT purposes and will fall within the scope of the French e-invoicing mandate, which begins its phased rollout in September 2026.
B2B e-invoicing in Monaco is voluntary, meaning sellers can issue electronic invoices with the buyer’s approval. Monaco’s Department of Tax Services has yet to announce a concrete implementation schedule for an e-invoicing mandate.
That said, from 1 September 2026, Monegasque entities registered in the companies register, SIREN, that are also registered for VAT in France, will need to comply with the French e-invoicing mandate.
As Monaco is not an EU Member State, it will not be required to follow the upcoming VAT in the Digital Age mandate, which will enforce e-invoicing from 2030 onwards.
B2G e-invoicing is not mandatory in Monaco. If sellers wish to issue e-invoices, they can do so if the buyer has given prior approval.
It is worth noting that France, Monaco’s neighbour, has an e-invoicing mandate in place as of 1 September 2026, which will require Monegasque businesses subject to French VAT to send and receive invoices electronically.
While e-invoicing is currently voluntary in Monaco, it does leverage the Peppol network in the exchange of e-documents on a voluntary basis.
The country is not an official member of Peppol—a pan-European e-invoicing framework and network for cross-border trade—but it utilises the framework to enable businesses to easily exchange electronic documents like e-invoices with public authorities.
Learn more about Peppol e-invoicing.
Find out the key moments in Monaco’s e-invoicing journey so far.
Businesses operating in multiple countries, like Monaco, need to be aware of varying e-invoicing requirements. This can be time-consuming, but using a single vendor for your tax and e-invoicing compliance can free you up to concentrate on what matters: growing your business.
Let’s chat.
No, there is not an e-invoicing mandate in Monaco—nor has the nation announced intentions to implement electronic invoices on a compulsory basis. Businesses can voluntarily issue e-invoices if they obtain the buyer’s approval first.
Yes, businesses can issue invoices electronically in Monaco. There is no mandate for the transmission of e-invoices, but sellers can do so voluntarily if the buyer’s consent is obtained.
As a general rule, businesses established in Monaco will not have to issue e-invoices or e-report transactions to the French Tax administration as, for the purposes of the e-invoicing mandate, Monaco will be considered a foreign country.
However, Monaco-based entities who have a SIREN number are considered established and, therefore, under the scope of the e-invoicing mandate.
Montenegro is in the early stages of its e-invoicing journey.
While the country’s Ministry of Finance signed an agreement with Serbia in 2023 to create a centralised e-invoicing platform—with plans to mandate electronic invoices for both B2B and B2G transactions in the process—these plans have yet to come to fruition.
This page is your ideal overview of Montenegro e-invoicing. Keep up with future mandates and regulatory changes by adding it to your bookmarks.
Businesses are not mandated to issue electronic invoices to other companies in Montenegro. There are plans for mandatory B2B e-invoicing; however, there is currently no regulatory obligation to implement it.
That said, businesses can voluntarily opt to issue e-invoices to other organisations—but only if they have obtained the buyer’s explicit consent to do so. If businesses choose to issue e-invoices, the issuer must ensure the integrity of the content and the authenticity of the origin by using, for example, an electronic signature.
Electronic fiscalisation is mandated for all businesses in Montenegro, requiring businesses to automatically report invoice data to the nation’s tax administration through certified software. However, there is no indication of when electronic invoicing will also become a requirement.
As with B2B e-invoicing, Montenegro has yet to mandate the issuance of electronic invoices for business-to-government (B2G) transactions. It signed an agreement with Serbia in 2023 that planned to introduce a mandate, but such a regulation has yet to come into effect.
A B2G e-invoicing mandate is anticipated to come before a B2B mandate, but the country’s Ministry of Finance has issued no concrete timeline at the time of publication.
Find out the milestones in Montenegro’s e-invoicing journey.
While Montenegro does not mandate the use of e-invoices, organisations like yours can voluntarily do so. The country does plan on requiring electronic invoicing to be implemented for both B2B and B2G transactions, so it’s important you are prepared for this change.
If you do business in multiple jurisdictions, then you will know that every country is in a different stage of its e-invoicing journey. Staying on top of all these regulatory updates can be time-consuming and complicated, but Sovos can help.
Get in touch to find out more about the peace of mind we can provide where tax and e-invoicing are concerned.
No, there is no mandate for businesses to issue electronic invoices in Montenegro.
Montenegro announced intentions to enable and enforce e-invoicing for both B2B and B2G transactions in October 2023. As part of an agreement with Serbia that would see Montenegro license its e-invoicing platform, the country revealed that it was exploring mandates for the electronic transmission of invoices.
There is currently no public timeline for such obligations to come into effect.
Gwenaëlle Bernier – Partner & Avocate Associée G56, Tax Technology & Transformation at EY
As France’s ambitious e-invoicing mandate approaches, Gwenaëlle Bernier – speaker at the Tax Compliance Summit Sovos Always On: Paris (19 Nov.) – shares expert insights on how digital transformation is reshaping tax compliance and operational performance. This interview dives into the real-world challenges and opportunities facing finance and tax leaders, revealing why the intersection of technology, regulation, and data is the hottest topic in French business today.
The first challenge is organizational: companies need a truly cross-functional framework that continuously involves the finance and accounting department, the tax department, and IT. Today these three pillars exist but often operate in silos, whereas the reform requires a unified view of accounting, tax, and IT issues, with dedicated time and clear governance. Implementation cannot be entirely “outsourced” to a service provider — some decisions and trade-offs must remain within the company, as they relate directly to its data and processes.
In practice, we first help companies establish this governance framework: clear executive sponsorship, shared accountability, and regular coordination points among teams. In large groups and mid-caps, this is crucial — the scale, diversity of flows, and ERP history make fragmented approaches ineffective. For small businesses, on the other hand, the challenge is simpler and the reform can fit into a broader simplification process supported by accountants or certified platforms.
Finally, companies must build new skills: tax teams need to understand data, while IT must understand tax logic. Anticipating business impacts — data quality, timing, upstream controls, reconciliations — has become essential. Successful projects are those where companies stop opposing “IT project,” “accounting project,” and “tax project,” and instead treat the reform as a single transformation, driven by a mixed, long-term team aligned around common goals.
It’s important to remember that the e-invoicing reform is, first and foremost, a tax reform — it is written into the French General Tax Code under the VAT chapter. It is therefore part of a broader framework of compliance and tax control, which is often overlooked, though it is key to understanding why data quality is so central to its implementation.
The real shift today is that every tax department is becoming digital. It’s no longer just a few tech-curious tax professionals — it’s a broad transformation. Most tax departments are acquiring new skills, and tax professionals themselves are learning to understand systems, data flows, and formats, and to translate regulatory requirements into technical language. This allows them to apply the rules more intelligently and in closer alignment with business needs.
The best practice is to embrace this evolution toward a “tech-enabled” tax professional. Digital tools allow tax teams to collaborate with the rest of the company through a shared language: data. And this data — long used mainly for financial performance or marketing — has now become a core tool of tax compliance. That’s what makes this reform unique: though rooted in taxation, it impacts the entire company. It forces organizations to question the very nature of their ERP data — whether it’s structured, reliable, and truly usable.
The move to prefilled VAT returns will not affect all companies in the same way. For small and medium-sized enterprises, it’s primarily an administrative simplification. They will benefit from support through their accountants or simple tools, sometimes mobile applications offered by certified platforms. For them, prefilled returns will reduce administrative work without significantly changing their organization.
For large companies and mid-caps, however, the impact will be far more structural. Until now, VAT returns have been prepared mainly by accounting teams, with tax departments stepping in only later — during interactions with the tax authorities or audits. Prefilled returns will change that division of labor: tax teams will now need to monitor data continuously, as it will be transmitted to the authorities daily and may prompt immediate follow-up questions.
We are entering an era of reciprocal transparency: companies will reveal their VAT treatment of each transaction in real time, while the administration will send back a synthesized view in the form of a prefilled return. This will inevitably require companies to rethink their internal organization — particularly the split between accounting and tax functions — and to strengthen coordination with IT. It will also demand new skills and heightened vigilance on data quality. The goal will no longer be to produce an accurate return at month-end, but to ensure the reliability of information transmitted day by day. That means better mastering ERP configurations, which in France have often been defined without real tax input. The pace, granularity, and nature of the work will change: companies will need to anticipate, validate upstream, and reconcile accounting and tax data more precisely.
The French tax administration is already equipped with artificial intelligence tools, the most well-known being Galaxie. This data-mining and analytics system, whose early versions date back to 2017, was formally established by decree a few years ago. It now forms the core of the administration’s intelligent data-processing capabilities.
As the reform rolls out and companies begin transmitting their e-invoices and e-reporting data, the administration will have not only the necessary technical infrastructure but also the software capabilities to analyze this information on a massive scale. By 2027, once all businesses are connected, the tax authority will have an almost complete view of France’s economic activity — what each company buys, sells, and trades domestically and abroad.
With Galaxie and this immense volume of data, the State will be able to conduct highly detailed economic and fiscal analyses. It will also transform the way audits are carried out: by the time a tax inspection begins, auditors will already have a detailed profile of the company, its operations, and any anomalies or unusual patterns compared to its sector. This is no longer theoretical — the public administration is ready to use these tools, and their effects will become tangible as the reform is fully implemented.
Today, finance and tax departments are still poorly equipped when it comes to AI. We’re at an early, experimental stage. Most companies are only beginning to explore the subject — often through general-purpose tools like office suite copilots — but very rarely with solutions designed specifically for tax or finance functions. True AI tools for compliance, anomaly detection, or tax data analytics are still being built.
There’s also a simple economic reason for this: finance and tax are not the company’s core business. Investment naturally flows to operational functions — those that produce and sell — while support functions come later, which explains the current gap.
However, the e-invoicing reform will accelerate this transition. Once companies are connected to certified platforms and able to exchange structured invoices, the next question will inevitably be: how can we use this data intelligently? That’s where AI will come in — to automate controls, enhance reliability, and anticipate discrepancies. Some platforms already offer advanced data-analysis features powered by AI, but adoption remains limited. Over the next few years, we’ll likely see rapid growth in these applications as tax departments realize the value of the data they now possess.
AI is already legally regulated in the French tax sphere. The main framework stems from Article 154 of the 2020 Finance Law. When this law was adopted in December 2019, the Constitutional Council defined the conditions under which the administration could use AI tools, setting out eight criteria to ensure ethical, transparent, and compliant usage — particularly regarding personal data protection. These principles were further clarified by the French Data Protection Authority (CNIL) in its September 2019 report, which remains the reference for AI oversight today.
We therefore already have a clear legal framework: the State has set the guardrails. But risks still exist. With the generalization of e-invoicing, the tax administration will gain access to a vast amount of transactional data between companies. Over time, it could end up knowing an enterprise’s ecosystem better than the company itself — its suppliers, clients, and business relationships.
The challenge, therefore, extends beyond personal data protection to include trade secrecy. This is crucial: authorities must prevent even unintentional disclosure of sensitive business information that could weaken competition or expose strategic details. As long as our economic model is based on fair competition, protecting trade secrets must remain a fundamental safeguard.
France made a decisive political choice in the summer of 2019: to make e-invoicing a cornerstone of economic modernization and efficiency. This commitment took shape in Article 153 of the 2020 Finance Law, which integrated e-invoicing and e-reporting into the General Tax Code. The decision reflects a longstanding conviction. Studies conducted at the European level as early as 2007 had already highlighted the potential benefits of such reforms in terms of simplification, productivity, and transparency. But France chose an ambitious path — to move forward on a fixed timeline, making the reform mandatory for all actors to accelerate digital transition.
Another reason for France’s leadership is the scope of its model. While most European countries separated the steps — first mandating structured e-invoicing, then, later, real-time reporting — France decided to do both at once. That makes the project more complex but also more complete.
At the same time, the 2020 Finance Law introduced a separate provision authorizing data mining, which led to the creation of the Galaxie system. In other words, France simultaneously launched digitalized exchanges, large-scale data collection, and AI-based analysis capabilities. This strategic decision explains why France now appears to be leading in both digital taxation and economic data governance.
France’s influence within the ViDA project will depend largely on how its representatives engage in European discussions. Within the Fiscalis group — which brings together finance ministry representatives from all Member States and the European Commission — much will hinge on France’s ability to defend its approach and share its experience.
In practice, France is already implementing, more than three years ahead of schedule, one of ViDA’s core pillars: the Digital Reporting Requirements. Starting in September 2026, France will effectively apply the same principles set to take effect across the EU in 2030. As a result, when ViDA comes into force, little will actually change for French businesses. Having already gone through this transition, they will likely serve as pilots and references for their European counterparts.
To make this advantage meaningful, France will need to promote both its model and its methodology at the EU level. The country has done extensive work on complex use cases — such as expense notes, multi-vendor invoices, and subcontracting — and on technical standards through AFNOR commissions. These efforts produced a pragmatic, collaborative approach that should be championed in Brussels. If each Member State designs its own rules, the goal of ViDA — harmonization — will be lost. The more aligned the standards, the smoother cross-border exchanges will become, improving both efficiency and competitiveness for European companies.
We are witnessing a genuine paradigm shift in how the State conducts tax audits — and, consequently, in how companies behave as taxpayers. Until now, France has operated under a retrospective model: companies submitted highly aggregated VAT returns, and audits often took place two or three years later, with inspectors reviewing past decisions and requiring lengthy explanations.
With the combination of e-invoicing, e-reporting, and AI tools like Galaxie, we are entering an era of near real-time tax oversight. The administration will have an immediate view of economic activity and be able to target audits more precisely. This could be a positive evolution if it helps focus efforts on genuine non-compliance while easing the burden on companies acting in good faith.
However, this increased transparency also calls for a change in mindset. Instead of relying solely on ex-post enforcement, the goal could be to establish an ongoing, cooperative dialogue between companies and the tax administration — one in which businesses explain their choices and challenges as they arise. Tax law is rarely black-and-white; it often involves interpretation, especially when business innovation outpaces legislation. The challenge will be to build a relationship of trust, where the State supports companies in applying the rules rather than sanctioning them years later. In essence, this could mean moving from a “rear-view” audit model to a smarter, more collaborative approach that fosters both compliance and economic vitality.
As real-time tax mandates accelerate worldwide, global businesses face growing compliance risks that can halt operations and disrupt ERP transformations. In this session, Brown-Forman’s Director of Enterprise Applications and SAP, Kelly Lewis, joins Vadim Nemtsev, Director of Product Marketing for Indirect Tax at Sovos, to share how the company unified tax compliance within its SAP S/4HANA transformation.