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.
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.
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.
In this extended instalment of our quarterly VAT Snapshot webinar covering Poland, France, Croatia, Greece, United Arab Emirates and Oman our experts will navigate the complex regulatory landscape, clarify key requirements, and deliver practical guidance to help your teams ensure readiness ahead of these mandate go-lives in 2026.
The “One Big Beautiful Bill” (OBBB) represents one of the most sweeping shifts to the tax compliance landscape in recent history. With wide-ranging provisions that touch nearly every corner of information reporting and withholding (IRW), this legislation will fundamentally reshape how organizations manage compliance, reporting, and operational risk.
For tax leaders, the OBBB is more than just new rules—it’s a call to rethink long-standing processes and prepare for a transformed regulatory environment.
As the IRS rolls out Form 1099-DA for digital asset transactions, financial institutions that have long reported on traditional securities through Forms 1099-B, 1099-DIV, and others are encountering a new level of complexity. For firms expanding from traditional finance into digital assets, it is essential to understand both the differences and the overlaps between these reporting frameworks. Join Sovos experts as we break down the specific requirements of 1099-DA reporting, from capturing transaction data to calculating cost basis, and compare them with established reporting processes for stocks, bonds, and other traditional instruments. We will also address the risks of treating digital asset reporting as a separate process (spoiler alert – data silos, inconsistent outputs, and operational strain!) Attendees will walk away with strategies for unifying reporting across asset classes. If you want to ensure accuracy and compliance and deliver a seamless customer experience, you don’t want to miss this.
Your SAP S/4 Migration and ‘Always On’ VAT Compliance Are on a Collision Course – Here’s How to Manage
If you’re an SAP user and you want to better understand your options in moving to S/4 in relation to tax compliance, this story should help. Download it now.
Prepare for the SAP S/4 migration to ensure continued tax compliance
SAP users wanting to better understand their options when migrating to S/4 from a tax compliance perspective should read this e-book. Gain insight into the future of global tax, including paperless transactions, business networks and the advent of transaction-orientated indirect tax enforcement.
The e-book also provides examples that explain the options for moving to a new ERP software – an important decision spanning multiple business departments, such as tax, accounting, IT and revenue.
Simplify Your SAP S/4 VAT Migration - Start Reading
Download our e-book to understand:
What are the greenfield and brownfield S/4 migration options?
What has changed in global tax?
What other approaches exist for S/4 migration?
What are the criteria for a future-proof VAT compliance solution?
How can Sovos help?
SAP plans to discontinue support for ECC6 by 2025 and that deadline will loom closer and closer as the months pass by.
It is quite clear from market data that many companies will not be able to migrate to S/4 prior to the 2025 deadline – even 2025 will prove tight on time for many, and in some cases, companies will find this deadline near-impossible to make.
Furthermore, many SAP users are yet to automate procurement and customer interactions: a significantly large proportion of orders and invoices are still exchanged on paper, often using ample scanning and OCR software in accounts payable.
Tax digitization is a trend that continues to rise in importance, with tax authorities across the globe introducing e-invoicing and continuous transaction controls (CTCs) to close the VAT gap. Tax compliance requires processes to be updated to comply with these digital tax changes.
Legacy reporting processes, organizational structures and technologies that continue to directly interact with your ERP systems need to evolve. The transformation of indirect tax is becoming a reality: manual, decentralised or shared service centre-aided indirect tax reporting will become a peripheral activity while your organisation negotiates the transformation to ‘always-on’ compliance.
If these challenges sound familiar, our e-book is equipped to help you overcome them. Our expert team have distilled their knowledge into this easy-to-digest guide on a complex subject that is underpinned by an increasingly urgent deadline.
How Sovos can help
At Sovos our goal is to allow our SAP customers to switch to a single vendor they can entrust their data to. This seamless migration will simplify operations and ensure compliance with each country’s different periodic or continuous controls at any time.
In doing so, you decouple business and tax functionality so you can focus on the former to power your digital and finance transformation – important considerations in an increasingly digital world where widespread digitisation is the expected status quo rather than a purely innovative force.
Sovos provides certainty with a future-proof strategy for tackling compliance obligations across all markets as VAT regulations evolve toward continuous e-reporting and other continuous transaction controls requiring increasingly granular data.
Experience end-to-end handling with compliance peace of mind with Sovos.
Ecuador VAT Compliance
Ecuador has multiple tax mandates you need to be aware of, including its VAT regime. Your obligations may span multiple regulations, and they can change, so staying on top of the latest developments is vital.
Ensure you are on the right side of Ecuador’s tax mandates with our Ecuador VAT Compliance overview. Bookmark this page to stay current on what’s new.
Monthly Subjects registered in the general regime will declare the VAT of the operations on a monthly basis within the month following the date of their execution, according to the day assigned to the ninth digit of their RUC
Quarterly 28th day of the month following the end of the tax period
VAT rates
15% 5% in local transfers of construction materials 0% or Exempt
VAT rules in Ecuador
Ecuador e-invoicing
Like many Latin American companies, Ecuador has a significant electronic invoice regime. It has been compulsory for all domestic taxpayers since 2022, requiring them to issue e-invoices for both B2B and B2G transactions.
There is no VAT registration threshold in Ecuador. This means that any organisation that makes taxable supplies of goods or services in the country must register for VAT purposes.
Those looking to register for VAT in Ecuador must submit numerous documents. They must also request a subscription to the RUC Single Taxpayer Registry in person.
Invoicing requirements in Ecuador
There are multiple rules and requirements governing the use of invoices in Ecuador, including:
Registering with the country’s tax authority, Servicio de Rentas Internas (SRI)
Once approved by the SRI, issuing e-invoices for both B2B and B2G transactions
All e-invoices must be sent to the tax authority for validation before sending to the recipient
E-invoices have to be securely signed with an e-signature to validate the contents
E-invoices must be in XML format
Penalties for non-compliance with VAT in Ecuador
Not meeting Ecuador’s VAT rules may lead to penalties such as fines, which is why you must stay on top of your requirements.
For example, being late to filing or paying VAT can result in fines of up to five times the amount of VAT owed to the tax authorities.
Foreign tourists can request a refund of the VAT paid on the acquisition of nationally produced goods by presenting the corresponding requirements in the different service channels enabled.
Subjects registered in the general regime will declare the VAT of the operations monthly within the month following the date of their execution, according to the day assigned to the ninth digit of their RUC.
In Ecuador, a VAT number is given to a registered individual or company as a unique identifier. The country’s VAT number is 13 digits long, with the first 10 digits comprising a personal identification number.
Solutions for VAT compliance in Ecuador
Ecuador’s multiple tax-related mandates may seem complicated to manage, especially if your organisation operates in numerous countries and jurisdictions. This feeling is often multiplied when considering the evolving nature of rules and regulations.
Sovos can help. As your compliance partner, we handle your tax obligations so you can focus on your business.
Complete the form below to speak with one of our experts
VAT in the Digital Age (ViDA) is one of the most significant regulation changes to EU VAT in recent years. Changes to requirements became effective on 12 March 2025 with the official adoption of the package, with further rules coming into effect in 2030.
This blog discusses the changes impacting businesses, including Digital Reporting Requirements, and when they take effect.
Changes effective as of ViDA’s approval on 12 March 2025
Removal of EU approval for domestic e-invoicing
Under the previous VAT Directive, EU approval was required for Member States to introduce domestic mandatory B2B e-invoicing. Countries such as Italy, Poland, Germany, France, Belgium and Romania applied for derogations to mandate e-invoicing. With ViDA, Member States may impose domestic e-invoicing without needing EU approval, provided it applies only to established taxpayers.
Buyer e-invoice acceptance eliminated
The previous EU VAT Directive stated the use of e-invoices was subject to buyer acceptance. Under ViDA, Member States that have introduced mandatory domestic e-invoicing will no longer require buyer consent.
ViDA changes effective from 1 July 2030
Redefinition of electronic invoicing
ViDA redefines electronic invoices. Under the proposal, electronic invoices are those issued, transmitted and received in a structured electronic format that allows its automated processing. This means that non-structured formats, such as pure PDFs or JPEG images, will no longer qualify as an e-invoice. Hybrid formats, such as ZUGFeRD and Factur-X, can remain due to their structured portion.
In principle, electronic invoices must comply with the European standard and the list of its syntaxes pursuant to Directive 2014/55/EU (the “EN” format). However, ViDA allows Member States to use other standards for domestic transactions upon meeting certain conditions.
From 2030, B2B e-invoices compliant with the European standard will be the default and no longer requiring buyer acceptance. However, if a Member State opts for a different mandatory domestic standard, they may either waive or require buyer acceptance for e-invoices using the European standard.
ViDA Digital Reporting Requirements (DRRs) for cross-border transactions
One of the most impactful updates in ViDA is the requirement for near-real-time digital reporting of cross-border transaction data.
Starting in 2030, taxpayers engaging in cross-border transactions within the EU must report invoice data electronically following the EN format. Such DRR will be a condition for taxpayers to exempt VAT in a cross-border transaction or claim input VAT. Each Member State will provide electronic mechanisms for submitting this data.
With ViDA, cross-border e-invoices within the EU must be issued in up to 10 days after the chargeable event. In these cases, DRR must happen at the same time the e-invoice is issued or should have been issued.
Invoices issued by the recipient on behalf of the seller (known as self-billing) and the invoices related to intra-community acquisitions must be reported no later than five days after the invoice is issued or should have been issued or received, respectively.
As expected, DRRs may be carried out by the taxpayers themselves or outsourced to a third party on their behalf.
ViDA Digital Reporting Requirements for domestic transactions
ViDA grants Member States the option to mandate digital reporting for domestic B2B/B2C sales, purchase data, and self-supplies for VAT-registered taxpayers within their jurisdiction. Domestic reporting requirements must align with ViDA’s cross-border DRR standards, and Member States must permit submissions in the European standard format, although other interoperable formats may be allowed.
For Member States with domestic real-time reporting systems in place as of 1 January 2024, compliance with ViDA’s standards will be required by 2035. On the other hand, the package clarifies that other reporting obligations, such as SAF-T, can still exist. This alignment will ensure consistency across the EU in preparation for full ViDA implementation.
Member States have until 30 June 2030 to integrate ViDA’s e-invoicing and DRR provisions into their national legislation, making the Directive effective across the EU by 1 July 2030.
ViDA’s impact on businesses
ViDA represents a significant shift for businesses operating within the EU, promising both opportunities and challenges. By introducing DRRs, ViDA aims to replace obsolete requirements, reduce administrative burdens, improve accuracy, and combat VAT fraud.
The move towards structured e-invoicing and near-real-time digital reporting will require businesses to update their invoicing and reporting systems, driving digital transformation across sectors. While the transition may entail initial adjustments, it is expected to increase efficiency, create a level playing field, and facilitate smoother interoperability between companies using different systems.
With the VAT in the Digital Age (ViDA) officially adopted by the EU on 11 March 2025, businesses have many questions about its rollout and impact on their operations. We answer the most frequently asked questions.
When will businesses begin to see an impact from ViDA?
ViDA is leading to changes in several areas of Value Added tax (VAT) law, starting now and going on for the coming decade.
From its entry into force on 14 April 2025, ViDA immediately removed restrictions that previously prevented EU countries from introducing mandatory domestic e-invoicing.
Therefore, Member States can now introduce both mandatory domestic e-invoicing and digital reporting requirements (DRRs), as long as they align with ViDA by 2030. By 2030 electronic invoicing and DRRs will become mandatory for so-called intra-Community transactions.
Since ViDA’s approval, we are already seeing momentum across the EU, with several countries announcing plans to introduce mandatory e-invoicing and real-time reporting within the next few years. ViDA will see the intensification of the current wave of new Continuous Transaction Control (CTC) mandates to prepare for in the short term, with many EU countries already announcing initiatives or starting rollout.
Is there likely to be a grace period for businesses to adjust and comply?
No, the ‘grace’ period for businesses was taken into account when setting the 2030 deadline for mandatory electronic invoicing and DRRs for intra-Community transactions. Member States’ domestic mandates will follow each country’s legislative process and culture but we are seeing an average period of 18-24 months for businesses to adapt, with no grace period after that.
Many businesses gravely underestimate the work required to ensure data quality, including the long adaptation cycles for their different business applications to incorporate the data and process changes required for real-time reporting and e-invoicing.
The introduction of changes of this magnitude to business and administrative processes is never without challenges on both sides of the equation. Businesses will make mistakes that may take time to fix, and this only gets harder as governments do the same thing in parallel under the pressure of political deadlines.
What business processes are likely to be impacted as part of the new regulations?
All invoicing and related processes will be impacted by ViDA including any accounts payable and accounts receivable process and the associated information systems that support them. All invoicing needs to be reviewed against this backdrop and readied for the digitization paradigm shift that will come off the back of ViDA.
How is ViDA likely to impact my business?
Whilst the reporting processes required to meet specific transmission protocols, authentication, and document exchange orchestration tend to get a lot of attention, businesses should be equally wary of the impact of CTC mandates generated or modified by ViDA on their upstream processes and data.
Many businesses have multiple ERP systems, multiple billing systems, accounts payable systems etc. for different lines of business or trading partner categories. Most of these systems process invoice data on a paper or PDF invoice manually or semi-automated which cannot be easily ‘upgraded’ to handle the data completeness and quality requirements of a stringent e-invoicing and e-reporting regime.
Beyond the headlines about mandatory e-invoicing and real-time reporting, the fine print of ViDA will drive a number of challenging modifications to business processes. This includes the very definition of what constitutes an invoice which will require billions of PDF invoices in the European Union to be converted to machine-readable formats.
To comply with ViDA, businesses will need to increasingly use software and service providers that can guarantee compliance with frameworks and laws that add up to a need for a complete rethink of invoicing processes and systems throughout most businesses.
Can businesses expect their current technology partnership to work for the new standards?
Companies that currently use EDI systems, procure-to-pay or accounts payable automation software of SaaS services, customer communications management, order-to-cash, electronic billing presentment and payment solutions etc. must ask themselves how those platforms will handle the new requirements for e-invoicing and e-reporting under ViDA and associated regulatory initiatives.
These vendors specializing in business process optimization typically have little experience with this specific area of compliance. Most of them are not set up to anticipate and address the tens or hundreds of changes that typically follow the initial rollout of a CTC regime in any jurisdiction in a timely manner.
We advise businesses to contact their enterprise software vendors and service providers now to ask these questions – are they aware of these changes as a result of ViDA, and what is their plan to keep you compliant?
How will cross-border transactions be impacted?
Under ViDA, cross-border transactions between EU countries will be subject to a new real-time reporting regime (DRR) that replaces the current requirement for a recapitulative statement. Each transaction will be reported individually to the respective national tax authority, which will then transmit the data within one day to a centralized European Commission-managed system known as “Central VIES”. This enhanced platform, launching in July 2030, will consolidate intra-EU B2B transaction data, integrate with systems like the Customs Surveillance System and the Central Electronic System of Payments (CESOP), and provide a unified interface for VAT number validation and transaction transparency across the EU.
In addition to these digital reporting sections of ViDA, intra-EU cross-border transactions are also affected by other parts of the proposal in other ways. For example, quite far-reaching changes will take place, removing administrative burdens for businesses moving their own stock between EU countries.
Take Action
Want to know more about ViDA? Get in touch with an expert here or learn more about VAT in the Digital Age with this guide.
In this webinar will explain Belgium’s B2B e-invoicing fundamentals and showcase a live demo of Sovos’ end-to-end compliance solution.
In today’s rapidly evolving regulatory landscape, tax departments are under increasing pressure to enhance efficiency, ensure compliance and deliver strategic value. However, securing an investment in tax technology often requires a compelling business case that resonates with organizational stakeholders. With the right strategy and organization buy-in, you can transform your tax.
Join us for this webinar where Sovos experts will be joined by an SAPinsider analyst to discuss how tax leaders can construct a persuasive business case for tax technology investment. Drawing from real-world experiences and best practices, we’ll explore how to align tax technology initiatives with broader organizational goals, quantify both tangible and intangible benefits and effectively communicate the value proposition to decision-makers.
Attend to learn how you can:
Quantify ROI, including cost savings, risk mitigation and process improvements.
Simplify support frameworks by centralizing your tax technology under one.
Transform your tax center into a profit center.
Anticipate future requirements and ensure flexibility in tax processes.
Strengthen your business case and engage stakeholders effectively.
Whether you’re a tax professional seeking to modernize your department or a finance leader evaluating technology investments, this webinar will equip you with the tools and insights needed to build a robust business case for tax technology.
Don’t miss this opportunity to learn how you can transform your tax function into an asset for the business.
Keeping up with evolving tax mandates across multiple countries is challenging. This webinar provides key insights into recent and upcoming regulatory updates—including VAT, SAF-T and e-invoicing—across 12 European countries, helping you stay compliant and prepared.
As some countries either introduce or consider introducing mandatory natural catastrophe insurance (e.g., Italy this year), France is ahead of the curve.
This is because France already has a specific compensation scheme in place for coverage of property against natural disasters, and has had one since 1982. The importance of the scheme is clear, as it is based on a statement in the preamble to the 1946 Constitution that French citizens are united and equal in bearing the burden of natural disasters. It is often referred to as the CATNAT or NATCAT regime.
What is the scope?
Unlike in some countries where mandatory natural catastrophe insurance may be limited to insurance of buildings, various types of insurance are within the remit of the CATNAT regime in France.
First and foremost, damage to property coverage (both fire damage and any other damage to property) triggers the insured’s entitlement to cover against the effects of natural disasters. This is extended to damage to motor vehicles and, separately, also operating losses caused by damage to property.
It is worth highlighting that insurers providing these types of insurance must include a clause in their contracts outlining their coverage of natural disasters. Any provision to the contrary is invalid.
Practical application of the CATNAT regime
Insurers collect an additional premium (the so-called CATNAT premium) representing the coverage of natural disasters at a rate set in law and based on the type of insurance, subject to exemptions. Following a change in January 2025 due to increased costs caused by climate change, the premium rate for property damage is now 20%, whilst there are rates of 9% and 0.75% in the case of motor coverage.
Insurers have a choice on what to do with this premium amount. They can choose to retain it themselves, in which case they are responsible for compensating policyholders for damage caused by natural disasters. Alternatively, they may opt to utilise the private reinsurance market. Finally, and most significantly, there is also the option for insurers to reinsure the premium with the state-backed reinsurance body, Caisse Centrale de Réassurance (CCR).
CCR only provides cover in the event of genuine natural disasters, as defined by their exceptional intensity. Floods and earthquakes typically satisfy this, whereas storms and hail do not as the insurance market can cover them as normal. Where CCR does provide compensation, it offers unlimited reinsurance coverage.
IPT implications
The CATNAT premium is subject to premium tax treatment, meaning that it also attracts IPT. Additionally, an additional insurer-borne levy due on property risks is calculated as 12% of the CATNAT premium. These are the contributions to the Major Risk Prevention Fund (or Fonds Barnier), which are included on the IPT return.
Sovos is well placed to assist both in identifying whether a particular policy is within the scope of the CATNAT regime and with the ultimate declaration and settlement of the taxes due on the CATNAT premium.
Indonesia VAT Compliance
Value Added Tax (VAT) is a significant source of revenue for the Indonesian government. It applies to most goods and services at different rates. Generally, in Indonesia, the imposition of VAT takes two forms: the input-output mechanism and the VAT collector mechanism.
Under the input-output mechanism, the supplier charges VAT to the buyer and then pays it to the tax authorities. In the VAT collector mechanism, the seller does not collect VAT. Instead, specific entities appointed by law collect VAT and remit it directly to the tax authorities.
This page provides an overview of VAT compliance requirements in Indonesia. Be sure to bookmark the page and revisit it whenever you have a question.
Due monthly, by the end of the month immediately following the taxable period 10th day of the month following the end of the tax period
VAT rates
11% (standard) 12% (luxury goods and services)
VAT rules in Indonesia
E-invoicing in Indonesia
In addition to general VAT compliance, Indonesia also has an e-invoicing mandate for almost all taxpayers.
Mandatory for VAT-registered taxpayers since 2016, Indonesia’s electronic invoicing requirements includes using a national system known as e-Faktur and largely involves issuing e-invoices for:
Businesses must register for VAT if their annual turnover exceeds a specified threshold:
Threshold: Business entities with an annual turnover of IDR 4.8 billion [approx. EUR 263 472.00] or more must register for VAT. This turnover includes all supplies of taxable goods or taxable services.
Process: Registration must be completed through the Directorate General of Taxes (DGT).
Small businesses whose annual turnover is below the specified threshold are not required to be registered for VAT. However, VAT registration is voluntary.
Penalties for non-compliance with VAT in Indonesia
Failing to comply with VAT regulations can result in administrative penalties being imposed. Criminal penalties may be imposed when businesses are late issuing tax invoices and filing VAT returns. Furthermore, penalties are also levied for failure to register for VAT on time.
Late filing of VAT returns can incur a penalty of 2% of the VAT owed per month
Late payments are subject to a 2% interest per month on the outstanding VAT amount
Late registration for VAT can result in a fine of IDR 1,000,000 (approx. EUR 55.04) being imposed
Criminal offences, including imprisonment, may be imposed for violating VAT regulations
The standard VAT rate in Indonesia is 11%, applying to most goods and services. However, since 1 January 2025 there has been a 12% VAT rate on luxury goods and services like private jets, cruise ships and luxurious houses.
Generally, the VAT rate on goods and services in Indonesia is 11%. There is, however, exceptions to this – exports of taxable goods, services and intangible goods are zero-rated.
Non-residents can recover VAT in Indonesia – depending on their status. Tourists can claim VAT refunds on eligible goods purchased from participating retailers under the “Tax Refund for Tourists” scheme. To qualify, they must hold a foreign passport and stay in Indonesia for no more than 60 days from their entry date.
Non-resident companies conducting business in Indonesia may be eligible to recover VAT, provided they are registered for VAT in Indonesia and comply with local tax filing requirements.
Non-resident companies must appoint a fiscal representative in Indonesia to comply with local tax obligations, particularly for VAT purposes. This requirement applies to foreign businesses without a physical presence in Indonesia that engage in taxable activities within the country.
To claim a VAT refund in Indonesia, you must purchase goods from shops displaying the “Tax Refund for Tourists” logo by presenting your passport. You need a valid tax invoice (with a payment receipt) for each transaction. The minimum VAT per transaction is IDR 50,000, and the total VAT from all receipts must be at least IDR 500,000.
Purchases must be made within one month before departure, and goods must be carried out of Indonesia as accompanied baggage within 30 days of purchase.
Non-resident companies conducting taxable activities in Indonesia may be eligible to reclaim VAT subject to fulfilling the VAT registration and filing requirements.
Solutions for VAT compliance in Indonesia
Complying with Indonesia’s VAT requirements becomes significantly burdensome on resources when you also operate in other countries. Each nation has its own VAT nuances, and requirements change over time.
That’s why it’s vital that you have a single compliance partner for wherever you do business. Sovos makes compliance simple, handling your tax needs so you can focus on your organisation.
Complete the form below to speak with one of our experts
Russia regulates electronic invoicing nationwide, but its usage remains mainly optional. Only transactions involving certain traceable goods require buyers to issue e-invoices.
Russia has a specific approach to e-invoicing, and this page provides an overview. Bookmark it to keep track of any updates.
While electronic invoicing for business-to-business transactions remains predominantly voluntary in Russia, resolution No. 807 dated 25 June 2019 states that specific categories of goods mandatorily require electronic invoices under the national traceability system.
The following product categories fall under Russia’s mandatory e-invoicing requirements:
Refrigeration and freezing equipment
Industrial trucks (including forklift trucks, bulldozers, graders, planners, power shovels, excavators, shovel loaders, tampers, and road rollers)
Washing and drying machines (for household and commercial applications)
Monitors and projectors (excluding television reception equipment)
Electronic integrated circuits and components
Baby strollers and child safety seats
This regulatory requirement, in effect since 1 July 2021, applies to all legal entities and individual businesses engaged in transactions involving these goods. Recipients of these products must maintain capabilities for accepting and processing electronic invoices.
B2G e-invoicing in Russia
No comprehensive mandate exists for electronic invoicing in Russia for business-to-government transactions. However, electronic invoices are widely utilised voluntarily throughout the public procurement ecosystem.
As with B2B transactions, mandatory e-invoicing applies exclusively to transactions involving traceable goods under Russia’s national goods traceability system. This regulatory framework was implemented in 2021 to enhance monitoring of trade activities within the Eurasian Economic Union (EAEU).
Timeline of e-invoicing adoption in Russia
Here are the key dates in Russia’s e-invoicing journey.
2012: Introduction of voluntary e-invoice exchange between businesses
2017: Introduction of mandatory e-invoice government clearing
1 July 2021: Implementation of mandatory e-invoicing for traceable goods
January 2024: Retention of invoices and accounting documents increased from four to five years under Order No. 236 of 2019
Russian E-Invoice Clearance
Incorporating a system of electronic invoicing, Russia introduced mandatory e-invoice government clearing in 2017 for the mandated issuance of traceable goods as well as for any voluntarily issued e-invoices. This required the production of invoices in XML as a UTD (Universal Transfer Document) format established by the Federal Tax Service.
Key components of the Russian e-invoicing system include:
42 certified Russian software providers that support electronic invoice submission with digital signatures
Electronic Document Exchange (EDE) networks that ensure secure invoice transmission
Regulatory oversight that enables Russian tax authorities to detect errors or fraud swiftly
Mandatory e-invoice retention period of five years
Specific format requirements for standardised information exchange
Characteristics of e-invoices in Russia
Russian e-invoicing compliance requires adherence to specific technical standards:
E-invoices must be generated from XML files with tags in the Russian language
Documents must be formatted according to the UTD (Universal Transfer Document) standard set by the Federal Tax Service
All invoices must be authenticated with qualified electronic signatures
Signature certificates must be issued by authorised Russian certification authorities (CAs)
Digital signatures can be prepared and stamped by certified e-invoice agents
All e-invoices must be securely archived for a minimum retention period of five years
Transmission must occur through approved Electronic Document Exchange networks
Russia only mandates the issuance of electronic invoices for select goods that fall under the country’s traceability requirements. The applicable goods include:
Refrigeration and freezing equipment
Industrial trucks (forklift trucks, bulldozers, graders, planners, power shovels, excavators, shovel loaders, tampers, in addition to road rollers)
Washing and drying machines (household and laundry facilities)
Monitors and projectors (excluding receiving television equipment)
The mandatory retention period for e-invoices in Russia is five years, which aligns with the statute of limitations for tax audits under Russian law.
Organisations must implement compliant archiving solutions that maintain document integrity while ensuring accessibility for potential tax authority inspections throughout the five-year period.
Electronic Document Exchange (EDE) networks in Russia are secure, certified infrastructure systems that facilitate the transmission of electronic documents, including e-invoices, between businesses and regulatory authorities.
Only authorised EDE operators meeting strict technical and security requirements can provide these services in Russia. The 41 certified Russian software providers typically offer access to these networks as part of their e-invoicing solutions, creating a controlled ecosystem for electronic document exchange that maintains security while enabling efficient business operations.
Hungary’s tax penalty consequences of non-compliance with tax requirements are governed by the Act on Rules of Taxation.
The law outlines a range of sanctions for non-compliance, including tax penalties, default penalties, late payment interest and self-revision fees. This blog will provide an overview of each sanction and summarise recent changes in this area.
Types of sanctions in Hungary for non-compliance
In Hungary, there are four types of payable sanctions for not complying with tax rules. While most of these sanctions are imposed by the Tax Authority, the self-revision fee is calculated and settled through self-declaration.
Tax penalty
A tax penalty is imposed as a result of an audit when the Tax Authority identifies a tax shortfall during an inspection. The standard rate is 50% of the unpaid tax, but it can increase to 200% in some cases.
Default fine
A default fine is a sanction that the tax authority may apply in case of a breach or failure to comply with tax obligations specified in legislation regarding taxes and budgetary subsidies. Most default fines are determined as fixed fees rather than a percentage. The law determines the maximum amount of this fine. The Tax Authority has the discretional right to levy it in the maximum amount, decrease it, or void it.
The amount that the Tax Authority can levy depends on the type of non-compliance and the taxpayer’s status, i.e., whether it is an entity or an individual taxpayer. For example, a default penalty can be levied for missed or late submission of a tax return.
Late Payment Interest (LPI)
LPI is charged when tax liabilities are not paid on time. The interest is calculated daily, and the rate is based on the central bank’s base rate plus five percentage points divided by 365. The Tax Office determines and assesses the amount of LPI.
Self-Revision Fee (SRF)
A Self-Revision Fee (SRF) applies when taxpayers voluntarily amend their tax returns to report a higher amount than initially declared. The SRF is calculated at a rate equivalent to the prime rate. In cases where the same return is revised multiple times, the applicable rate is increased by 50%.
The SRF must be calculated and self-declared simultaneously with the revised tax liability.
The severity of sanctions and applicable settlement rules vary based on the so-called qualification of the taxpayers. Taxpayers are categorised into three groups: Reliable, Neutral and Risky. Reliable taxpayers benefit from more lenient treatment, including reduced default penalties, whereas risky taxpayers are subject to stricter sanctions. For neutral taxpayers, standard penalty levels apply by default.
Changes to Hungary’s tax penalty regime
Recent changes to Hungary’s tax penalty regime include the following.
Increase in default fine
The Hungarian government doubled certain penalty amounts from 1 August 2024:
For individuals, the maximum default penalty increased from HUF 200,000 to HUF 400,000
For legal entities, it rose from HUF 500,000 to HUF 1,000,000
Late Payment Interest (LPI) changes
Effective from 1 January 2025, there were changes in:
Calculation method The payable LPI is calculated monthly. Previously, it was annually.
Payment date Previously, the due date was 15th November of the following year.
Based on the new rules for 2024, the LPI was payable by 31 March 2025. For the months of January to March, LPI is assessed in April and is payable by 22 April (as 20 April 2025 is a public holiday). From April 2025 onwards, LPI is levied and accounted for monthly on the taxpayers’ tax accounts and payable by the 20th of the following month.
Rounding rules Late payment interest should be paid without rounding in HUF.
Notification The Tax Office will not send notifications going forward on the amount of the payable LPI, although one will still be sent once the payment threshold has been reached. LPI will be booked on the tax account, and it should be settled monthly without notification. As a transitional rule, the notifications were sent out by the Tax Office for 2024.
Despite the change in the calculation method, no changes were made regarding the threshold under which LPI is not payable. This amount remained HUF 5,000 annually.
The Hungarian Tax Office issued a notification about the changes in LPI settlement on 11 April 2025 and published the corresponding guidance on its website on 3 February 2025.
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VAT in the Digital Age (ViDA) aims to modernise and simplify the European VAT system.
ViDA was officially adopted by the EU on 11 March 2025. The package took 27 months to be approved and adopted, with the initiative initially being proposed by the European Commission in 2022.
The path to adoption included many versions and consultations, which this blog outlines in a timeline.
Want to understand more about ViDA and how it will impact your business? Read our ViDA guide.
2025
25 March 2025 – ‘VAT in the Digital Age’ Published in the EU Official Journal
On 25 March 2025, the VAT in the Digital Age (ViDA) package was officially published in the Official Journal of the European Union amending the following legal instruments:
These amending acts will enter into force on 14 April 2025, with different changes taking effect from that date through to 2035.
This means that in 20 days, the first changes will take effect regarding electronic invoicing rules. Under the new framework, EU Member States will have the flexibility to introduce domestic e-invoicing mandates without needing prior approval from the EU.
11 March 2025 – EU Officially Adopts ‘VAT in the Digital Age’
The VAT in the Digital Age Package (ViDA) has been adopted by the EU on 11 March 2025, 27 months after it was initially proposed by the Commission in late 2022.
The package includes a directive, regulation, and implementing regulation, focusing on three key areas: digitalizing VAT reporting by 2030, requiring online platforms to collect VAT on short-term accommodation and passenger transport services, and expanding the online VAT one-stop-shop to simplify cross-border VAT registration.
The new rules will take effect on the 20th day after publication in the Official Journal of the EU, with Member States required to transpose the directive into national law.
While many rules will come into effect only a few years from now, some will be effective immediately, such as Member States’ right to introduce mandatory domestic electronic invoicing without needing prior authorization from the EU.
12 February 2025 – European Parliament approves ViDA Proposal
The European Parliament has approved the VAT in the Digital Age (ViDA) proposal, bringing it one step closer to official adoption. The proposal will now head to the Council of the EU for final approval, marking a key step in the effort to modernize VAT systems throughout the European Union.
2024
5 November 2024 – Member States agree to adopt ViDA package
The European Parliament has approved the VAT in the Digital Age (ViDA) proposal, bringing it one step closer to official adoption. The proposal will now head to the Council of the EU for final approval, marking a key step in the effort to modernize VAT systems throughout the European Union.
The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major milestone in modernizing the VAT Directive, setting the stage for a more efficient and digital VAT system across the European Union.
Certain changes will take effect immediately once the package comes into force, while others will roll out in stages over the coming years.
The text will proceed to formal approval by the Parliament, after which it will be ready for official adoption.
1 November 2025 – New ViDA Proposal Set for ECOFIN Approval
The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform.
The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 November at the upcoming ECOFIN meeting. The main change in the new ViDA proposal concerns the dates when measures become effective. Deadlines have been postponed as a result of the setbacks ViDA has faced since its initial draft.
If approved, a series of changes will take place over time – some of which will take effect as soon as the Directive enters into force.
25 June 2024 – ViDA Rejected again
During the latest ECOFIN meeting on 21 June, Member States met to discuss if they could come to an agreement to implement the VAT in the Digital Age (ViDA) proposals. At the ECOFIN meeting in May, Estonia objected to the platform rules being proposed, instead requesting to make the new deemed supplier rules optional (an opt-in), allowing Member States to choose whether to implement them in their national VAT legislation or not.
In the meeting a new compromise text was proposed. The compromise text meant that there would be an opt in for the new deemed supplier rules but for SME businesses. Whilst 26 Member States and the commission came to an agreement on this, Estonia could not support the new compromise due to the fact there was no substantial changes since the last meeting and their objections remained. It will now be up to the Hungarian presidency to seek agreement on the proposals, during the second semester of 2024.
2023
November 2023 – Committee on Economic and Monetary Affairs proposes postponement of ViDA
The Committee on Economic and Monetary Affairs from the European Parliament has proposed to postpone most aspects of ViDA for at least one year. The committee cites ongoing delays in the legislative process as a reason for the postponement. The recommendation was decided on a nearly unanimous vote; no members voted against the measure.
If the Committee’s proposal is adopted as written, the revised launch dates for ViDA will be as follows:
E-Invoicing and Digital Reporting Requirements: Member States must implement administrative provisions for digital reporting requirements by January 1, 2029. The requirement for Member States to allow electronic invoicing, subject to common standards and without prior authorization from the tax authority, would take effect January 1, 2025.
Deemed Supplier Rules for Platforms: Member States must implement provisions to harmonize treatment of services facilitated by electronic platforms, and to impose deemed supplier rules for goods facilitated by electronic platforms, by January 1, 2026.
Single VAT Registration: Existing rules for VAT treatment of call-off stock would cease to apply as of December 31, 2025 [no change from original proposal]. Changes to Article 194 of the VAT Directive would take effect by January 1, 2026. Member States must implement provisions to expand the scope of non-Union and Union One-Stop Shop schemes by January 1, 2026.
2022
8 December 2022 – Commission adopts ViDA proposal and issues a follow-up feedback period
May 2022 – Feedback period ends
January 2022 – EU Commission proposes VAT in the Digital Age plan
