VAT Compliance in Germany: An Overview for Businesses
Tax compliance in Germany is fragmentary by nature and requires resources to ensure compliance. Consider that compliance for many German taxpayers requires meeting several mandates, and the fact that such regulations are updated often, and you understand the challenge taxpayers have to undertake. From VAT to IPT, multiple moving parts demand precious time and resources.
This page is your overview of all tax compliance obligations across Germany. To keep up with evolving requirements, be sure to bookmark and revisit frequently.
Germany VAT compliance can be resource-heavy to stay on top of due to the many requirements imposed on taxpayers. These include:
Periodic VAT return
Monthly 10th day of the month following the end of the tax period
Quarterly 10th day of the month following the end of the tax period
Annual VAT Return
Annual 31st May of the year following the reporting year
EU Sales and Purchases List
Monthly 25th day of the month following the end of the tax period (for goods once sales pass EUR 100,000 annually)
Quarterly
25th day of the month following the end of the tax period (for services and goods when sales are under EUR 100,000 annually)
Intrastat
Monthly 10th day of the month following the relevant month
VAT rates
19%
7%
0% and Exempt
Intrastat thresholds
Arrivals: EUR 800,000 Dispatches: EUR 500,000
VAT Rules in Germany
Germany e-invoicing
E-invoicing is on its way for all taxpayers in Germany, but complete coverage is not here just yet.
Electronic invoicing is currently divided by transaction type. While there are national and federal requirements for B2G transactions, electronic B2B invoices are still not mandated.
Taxpayers may find Germany’s e-invoicing scheme complicated due to its fragmented status, and the fact that more updates are coming. Our dedicated Germany e-invoicing page can help you to meet your compliance obligations.
Requirements to register for VAT in Germany
Companies established within the EU but outside of Germany typically do not have to register for VAT in the country. However, there are exceptions which would require a foreign business to have to register for VAT – including:
Buying and selling domestically without the goods leaving the country
Holding products in a German warehouse and selling to German customers
Importing into and selling goods in Germany from another EU Member State
Intra-community supplies (moving goods between Germany and other EU Member States)
Organising live events in Germany – whether for art, education or a conference
Selling via an electronic marketplace in Germany
More exceptions and other nuanced situations may require VAT registration in Germany. Contact us for more information.
IPT in Germany
Insurance Premium Tax (IPT) is another tax obligation in Germany to consider.
IPT in Germany is complex, providing numerous elements for insurers, brokers and other applicable parties to track – from rates to law changes. Just a handful of years ago, Germany underwent sweeping Insurance Tax Act reforms that caused uncertainty in the insurance market.
Put simply, Insurance Premium Tax is made up of five key elements. Together, the following determine the tax:
Import VAT, known as Einfuhrumsatzsteuer in Germany, is a unique form of VAT that foreign taxpayers must know. It is charged by the country’s customs authorities when goods are imported into Germany from countries outside the EU.
Companies established outside of EU Member States must pay import VAT in Germany, including when using ports in Bremen and Hamburg. However, foreign taxpayers oftentimes can apply for reimbursement of import VAT they have paid if they register in Germany.
Invoicing requirements in Germany
German VAT invoices have strict requirements to be legally valid. Required invoice contents include:
Issuance date
Unique invoice number
VAT identification number for the supplier
VAT rate(s), VAT amount(s), and total gross amount
Supplier and buyer full addresses
Description of the goods or services (plus quantities if supplying goods)
Total value of the invoice
Details in case of zero VAT, reverse charging, intra-community supply, etc
Registration for OSS in Germany
Cross-border trade in the EU for B2C transactions was simplified with the implementation of the One Stop Shop (OSS) scheme as part of the 2021 EU E-Commerce VAT Package.
To register for OSS in Germany, taxpayers must use the ELSTER.de portal. However, this requires an ELSTER certification, which is given to companies that have registered, paid VAT or submitted a tax return in Germany.
Devised to simplify EU VAT compliance, the VAT Import One Stop Shop (IOSS) consolidates your intra-EU activities into a single VAT return.
Businesses or their local representatives must submit an electronic application to the BZSt to register for IOSS in Germany. Taxpayers who pay VAT must also specify their VAT registration number.
Intrastat is an obligation for particular companies that trade internationally in the European Union. Specifically, it relates to the movement of goods across EU Member States.
Despite their being similar enforcements across the EU, Member States have chosen to implement Intrastat rules differently and they each have their own Intrastat threshold that triggers reporting. In Germany, there is a declaration threshold of EUR 800,000 for arrivals and EUR 500,000 for dispatches in 2024.
Germany issues VAT refunds monthly or quarterly, depending on the business’ filing frequency. The tax authorities transfer the refund to the bank account the business provided when it registered.
The standard VAT rate in Germany is 19%, applying to most goods and services. There’s a reduced rate of 7% for the likes of books, cultural services, medical and dental care.
The VAT registration threshold for taxpayers in Germany is EUR 10,000, providing they haven’t opted to pay VAT in Germany through the EU’s One Stop Shop scheme.
In Germany, VAT is due when the tax point occurs. It can be paid from the day after the end of the reporting period to the due date of the VAT return being paid.
Germany does not require companies outside the EU to appoint a fiscal representative for tax purposes. Businesses can choose whether to appoint a local representative or register directly with the appropriate tax office in Germany.
In Germany, the tax point determines when VAT is due. For goods, it is typically the time of delivery. For services, it is when the service is completed.
The tax office automatically sends a tax ID number to newly registered German addresses within three weeks of registration. It will come via mail; a duplicate can be obtained from the Finanzamt.
The delivery threshold in Germany is EUR 10,000. If a Germany-based supplier delivers goods to a customer in another European company under EUR 10,000, they will pay VAT in Germany as the threshold has not been reached.
How Sovos can help with VAT compliance in Germany
The fragmented aspect of tax compliance in Germany can be demanding on resources, especially when keeping current on future updates and implementations. Sovos is a single vendor with global and local tax expertise that allows you to future-proof your tax compliance.
Choosing Sovos as a partner means choosing to reclaim your time, allowing you to focus on what matters: growing your business.
Complete the form below to speak with one of our e-invoicing experts
Climate-related events are an issue that impacts all industries, and the insurance industry is certainly no exception.
Beyond the challenges that insurers face in assessing the likelihood of weather-related events and natural disasters, there are also difficulties affecting Insurance Premium Tax (IPT) as countries look at ways to ensure they can fund responses to the consequences of these events. Some of these are not direct IPT measures but inevitably impact IPT, whereas others are direct IPT-related measures.
A gradual shift towards mandatory natural catastrophe insurance?
Natural catastrophe coverage is often an optional add-on to property insurance. In some countries, however, that is not the case – such coverage is mandatory. France and Spain are examples of this, with regimes in place involving the Caisse Centrale de Réassurance (CCR) and Consorcio de Compensación de Seguros (CCS), respectively.
Against a background of increasing costs due to natural disasters, recent months have seen other European countries follow suit with similar laws or proposals. Italy, for example, passed a law in late 2023 which requires companies to take out insurance policies by the end of 2024 to cover natural disasters occurring in the country. The government has authorised an Italian insurer to provide reinsurance of such risks like CCR in France, up to certain limits.
Germany and Slovenia have also seen resolutions or proposals for similar laws. In Germany, the Federal Council has called on the government to introduce mandatory natural catastrophe insurance. This is in light of the insurance protection gap relating to such coverage of properties. It remains to be seen whether the government will act based on this.
The increasing costs of weather-related events have triggered Slovenia’s national programme for protecting against natural disasters in the coming years, and a discussion of mandatory state insurance was recommended.
Additional premium amounts paid for natural catastrophe insurance can be expected to attract IPT and any applicable parafiscal charges due in these countries.
Changes in IPT due to increasing costs of climate-related events
Weather-related events have also been cited as a reason for various premium taxation changes. In France, the additional premium rates due on risks which trigger natural catastrophe coverage (property and fire, as well as certain motor coverage) are increasing. Most notably, for property and fire risks, the premium rate is increasing from 12% to 20%. As IPT is due on this additional premium, this will significantly increase the IPT due on these policies.
Climate-related issues have had a major impact on levies used to fund emergency services due on property insurance in some states in Australia, specifically New South Wales and Tasmania. There is increasing pressure to reform the levies (with mixed success) due to the spiraling costs of responding to natural disasters. The levies result in huge increases to premium values, so the Insurance Council of Australia, amongst others, has urged the states to find a more sustainable way to fund emergency services.
Sovos actively monitors changes that impact IPT and is best positioned to advise if you have any IPT queries. Contact our experts today for more information.
The taxation of insurance premiums in Hungary is unique, both in terms of the technique used to calculate the tax and how it is governed.
Regarding calculating Insurance Premium Tax (IPT), Hungary is the only country in the EU where the regime uses the so-called sliding scale rate model. It applies to both IPT and the extra profit tax on insurance premium amounts (EPTIPT), also known as the supplemental insurance tax.
The insurance premium tax law (Act of 102/2012) includes the rules of IPT. However, this law can be amended by a government decree. Government Decree of 197/2022 regulates the EPTIPT. The Hungarian Tax Office has issued guidance about the rules of insurance premium taxation, and both IPT and EPTIPT are declared on the same return template.
What kind of taxes are applicable in Hungary on insurance premium amounts?
In Hungary, insurance premium tax (IPT) and extra profit tax (EPTIPT) are levied on the premium amounts collected by the insurance companies.
What are the IPT tax rates in Hungary?
In Hungary, it is almost impossible to determine the rate and amount of the insurance premium tax for a single policy, because IPT and EPTIPT are levied on the aggregated amount of the collected insurance premium.
The sliding scale regime considers:
The amount of the collected premium in the year preceding the reporting period (i.e. threshold)
The amount of the collected premium in the reporting month (i.e. scales)
For IPT, the threshold is HUF 20 billion since April 2024. It was HUF 8 billion prior to that. EPTIPT has no such taxable premium threshold.
For IPT, the scale is:
Under HUT 250 million (HUF 100 million prior to April 2024)
Over HUF 250 million but under HUF 1.75 million
Over HUF 1.75 million (HUF 700 million prior to April 2024)
For IPT, the only exception from the sliding scale regime is the Class 10 motor third party liability insurance (MTPL) premium. IPT on MTPL premium is calculated differently, hence MTPL premium amount is not part of the aggregated taxable premium. The tax rate for MTPL premium is 23%.
EPTIPT’s scale differs from those of the IPT. Although the EPTIPT computation for non-life and life policies differs, the same scales apply. The EPTIPT scale is:
Under HUF 2 billion
Over HUF 2 billion but under HUF 36 billion
Over HUF 36 billion
The rates, as of 2024, are:
IPT: 10% and 15% for P&A policies and CASCO policies, respectively. These rates are reduced by 75% and 50% in the first two scales.
EPTIPT non-life policies: 2%, 4% and 12% respectively.
EPTIPT life policies: 1%, 1.5% and 5% respectively.
What is the basis of Insurance Premium Tax Calculation in Hungary?
The taxable basis is the insurance premium. The insurance premium is defined by the IPT Law (point 1 article 7 of Act 102/2012) as:
“The gross premium accounted for by the insurer based on accounting regulations for insurance services, including values not accounted for as gross premiums but considered as the countervalue for insurance services as coverage for insurance services, excluding premium income received from reinsurance taken from another insurance company, which is accounted for as gross income.”
MTPL premium amounts should not be considered for IPT’s sliding scale. However, the premium collected for MTPL is included in the EPTIPT non-life aggregated premium amount.
Are life and sickness policies exempt from Hungarian IPT?
Life policies are exempt from IPT, but EPTIPT is payable on premium amounts collected by insurance companies from life policies.
Sickness insurance is exempt from both IPT and EPTIPT.
Another notable exemption is the premium amount collected on certain agricultural policies.
What are Insurance Premium Tax challenges in Hungary?
Currently, the biggest challenge in Hungarian Premium Taxation is the legal environment. The Constitution and the law on special measurements in case of catastrophic environments allow the government to amend tax rules – including IPT – via governmental decrees, instead of actually changing the relevant tax law.
For example, in 2022, a governmental decree introduced a new tax: the extra profit tax on insurance premium amounts (known as supplemental IPT or EPTIPT). In 2024, the government published another decree to change the applicable brackets of the sliding scale for the IPT regime.
The Act on Insurance Premium Tax No 102/2023 was not changed in either of these cases.
Sovos’ IPT Determination solution enables you to confidently calculate and apply IPT rates at quotation. Real-time tax updates ensure tax rates and tax applicability are always accurate.
Want to ease the burden on your tax teams? Sovos’ IPT Managed Services provides support from our team of local language regulatory specialists who monitor and interpret IPT regulations around the world, including in Hungary, so you don’t have to.
As the global e-invoicing landscape continues to shift and develop, our quarterly VAT Snapshot webinar brings you all the details on the key regulatory changes to watch.
Join Dilara Inal and Marta Sowinska from our Regulatory Analysis and Design team for a 30-minute update on the latest developments in e-invoicing regulations across Europe and beyond.
This session will cover:
Estonia: Encouraging the use of e-invoicing
Latvia: Upcoming mandatory B2B and B2G e-invoicing
Germany: Approval of mandatory B2B e-invoicing by the German Parliament, effective from 2025
Israel: Current status of the e-invoicing clearance mandate
Ever-changing Insurance Premium Tax (IPT) rules and regulations can be challenging to keep up with, so staying on top of the latest developments in IPT compliance is key.
Join our insightful webinar where Sovos’ IPT experts Edit Buliczka, James Brown and Jake Thorne will deep dive into the intricacies of remaining compliant in Hungary and discussing the current and the potential future impacts of the climate change to the IPT regulations across Europe and beyond.
Remaining current with the latest regulatory revisions in VAT reporting and SAF-T requirements in Poland. This webinar will deliver a comprehensive overview of recent changes to ensure you thoroughly understand the evolving compliance landscape. Gain valuable insights into essential strategies and best practices for preparing for VAT audits, mitigating risks and avoiding penalties.
The EU Directive for VAT has laid the groundwork for a harmonised VAT system throughout the different Member States. However, the implementation of the EU VAT law within the national jurisdictions still creates a disparity between its application and conditions to be met, specifically regarding some of the intra-EU simplifications to be applicable.
Following a webinar covering regulatory updates alongside key points of the VAT recovery process, this blog aims to shed light on the crucial aspects of VAT recovery – especially fast-approaching deadlines.
Understanding the nuances of VAT recovery applications is essential for businesses seeking to optimise operational costs by recovering VAT incurred in a different country. Let’s explore the fundamental aspects of the VAT recovery process.
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 want to implement 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 is rolling out the B2G e-invoicing mandate in phases. The mandate covers most public contracts, from defence to general supplies and services. The gradual implementation is ongoing, covering:
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).
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 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
While the future of e-invoicing in Greece is not set in stone, the end goal seems clear.
With Greece engaging in a dialogue with the European Commission over a nationwide e-invoicing mandate, there is a chance that electronic invoicing will become mandatory for B2B transactions.
Many European countries are looking to digitize their tax systems to increase transparency for tax authorities and reduce the VAT gap – Greece appears to be moving in this same direction.
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.
Since 2021, companies established in Greece have been required to electronically report accounting data through the myDATA system. The implementation timeline of the myDATA mandate is ongoing.
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
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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.
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:
From August 2024, e-invoicing in Malaysia will become mandatory for taxpayers with an annual turnover or revenue of more than RM100 million. The mandate will follow the continuous transaction control (CTC) model and will require e-invoices to be validated by the country’s tax authority, as well as reporting certain transactions. Rollout to all other taxpayers undertaking commercial activities in Malaysia will follow in 2025.
Read on for an overview of Malaysia e-invoicing requirements and bookmark this page to stay updated with the latest mandate developments.
The issuance of an electronic invoice and submission for validation to the IRBM’s Platform (MyInvois) will be mandatory in Malaysia for certain determined transactions (e.g. automotive, aviation, construction).
For transactions where e-invoicing is mandatory, and in all other transactions where the buyer requests the issue of an e-invoice, the supplier will need to issue an e-invoice in XML or JSON format and submit it to the IRBM´s MyInvois platform for validation.
To comply with this e-invoicing requirement, taxpayers can use the MyInvois platform through the free solution offered by IRBM or integrate through specific APIs. A Software Development Kit has been released by the IRBM for this purpose.
The platform will perform certain validation checks, not only to the e-invoice structure but also to Taxpayer Identification Numbers (TIN). Once the e-invoice receives validation from IRBM, buyers are allowed to submit rejection requests stating the rejection reason.
On the other hand, suppliers can agree to such rejections and issue cancellations of the e-invoice during a 72-hour period.
Following validation, suppliers handle the exchange of validated e-invoices. The exchanged e-invoice should include the original validated e-invoice, the validation link provided by the IRBM in the form of a QR code and a PDF copy.
The QR Code enables the verification of the existence and status of the e-invoice through the MyInvois portal.
Malaysia B2B e-invoicing
CTC Type E-invoice reporting.
Network E-invoices are processed via the MyInvois portal, however, they should be exchanged out-of-band.
Format XML or JSON.
eSignature Requirement Mandatory. Use of local certificates required.
Malaysia B2G e-invoicing
CTC Type E-invoice reporting.
Network E-invoices are processed via the MyInvois portal, however, they should be exchanged out-of-band.
Format XML or JSON.
eSignature Requirement Mandatory. Use of local certificates required.
E-invoicing in Malaysia: Key requirements and regulations
From August 2024, Malaysian taxpayers with an annual turnover or revenue of more than RM100 million will be required to submit and clear e-invoices for certain transactions.
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).
As of the 9 February 2024, the IRBM guidelines state that mandatory e-invoicing will be for specific sectors and transactions.
Sectors in-scope of mandatory e-invoicing include:
Automative
Aviation
Luxury good and jewellery
Construction
Licensed betting and gaming
Payments to agents, dealers and distributors
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 Malaysia e-invoicing system.
B2C transactions fall outside of the mandatory e-invoicing scope. Any e-invoices for transactions not in scope are subject to the buyer’s request.
What is an e-invoice in Malaysia?
An e-invoice is a digital representation of a transaction between a supplier and a buyer that replaces all paper or electronic documents serving as invoices, credit notes and debit notes.
An e-invoice under the new framework is a structured file created in a defined format that can be automatically processed by the relevant systems. The e-invoice structure includes 53 mandatory fields and must be submitted in either XML or JSON format.
An e-invoice will contain the same essential information as per current practices, such as supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount.
Following the validation process, e-invoices must include an embedded QR code.
PDFs, Doc, JPG and paper will not be considered as e-invoices.
What is the process flow of an e-invoice in Malaysia?
E-invoice issuance: Taxpayers must submit e-invoices to the IRBM via the MyInvois portal or through a third-party e-invoicing software API in XML or JSON format.
Validation: Once submitted, the e-invoice is validated in real-time and a Unique Identification Number, validation link (QR Code) and PDF format of the cleared e-invoice are sent to the supplier.
Validation notification: The IRBM performs certain validation checks on the e-invoice structure and on taxpayers identification numbers and notifies the buyer and supplier of the validated invoice.
E-invoice sharing: Suppliers should share the validated e-invoice and a visual representation with a QR code embedded. The QR code allows buyers to validate the existence and status of the e-invoice via MyInvois. It’s the supplier’s responsibility to share the document with the buyer.
Rejection or cancellation: Optional rejection (buyer side) and optional cancellation (supplier side) requests have a 72 hour time limit, after which the invoice is considered valid. Any corrections or amendments made after the 72 hour limit will need to be made through credit, debit or refund notes.
Transaction Summary: A summary of the transaction can be viewed via the portal.
What are the types of e-invoices in Malaysia?
In Malaysia, the e-invoice mandate covers the below document types:
Invoice
Credit note
Debit note
Refund invoice
Self-billed invoice
E-reporting regulations in Malaysia
For all other transactions that fall outside of the mandatory e-invoicing scope, and where the buyer did not request an e-invoice to be issued, suppliers can issue an invoice or receipt as per the current practices (e.g. paper).
However, in these cases, suppliers are required to instead issue a consolidated e-invoice aggregating all invoices and receipts on a monthly basis, within 7 days of the month end-. Consolidated e-invoices are common in Malaysia today, and this requirement allows this practice to continue, while still giving the IRBM access to aggregated transaction data. These consolidated invoice reports are issued to a ‘general public’, without specification of each buyer, and a general TIN is provided.
A description of the products or services is provided by the summary of each receipt presented as separate line items in the consolidated e-invoice and/or the list of receipts (in a continuous receipt number) presented as line items.
Additionally, when consolidated- e-invoices are issued, MyInvois will send notifications back to the supplier only. Rejections are not allowed from the buyer side and suppliers are not required to share the validated e-invoice with buyers.
Consolidation cannot be used for self-billed invoices.
Implementation timeline
2015: Malaysia introduces voluntary e-invoicing
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 (aprox. 20 million euros)
January 2025: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM25 million (aprox. 5 million euros) and RM100 million
July 2025: Mandatory e-invoicing for all taxpayers
Setting up e-invoicing and e-reporting in Malaysia
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.
Speak with a Sovos expert to set-up e-invoicing in Malaysia.
Complete the form below to speak with one of our e-invoicing experts
E-invoicing will become mandatory for certain transactions for taxpayers with an annual turnover or revenue of more than RM100 million from August 2024. Additional taxpayers will be in scope from 2025 with all taxpayers included by July 2025.
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 7 days from the month end).
E-invoicing is currently optional for taxpayers in Malaysia but an upcoming mandate will make it a requirement for all taxpayers by 2025. The first group of taxpayers need to comply by August 2024.
The Inland Revenue Board of Malaysia (IRBM) is the e-invoicing authority in Malaysia. The IRBM 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 validating, before sharing with the buyer. The real-time e-invoicing process saves time and resources for businesses and facilitates cross-border and international trade.
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.
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.
