Regulatory Analysis
The Saudi Arabian Tax and Customs Authority, ZATCA, announced the fourth wave of Phase 2 of e-invoicing. The fourth wave covers taxpayers with at least SAR 150 million (USD 40 million) revenue subject to VAT for 2021 or 2022. Taxpayers within this group are expected to integrate as of November 2023. Phase 2 of e-invoicing […]
As part of the 2023 state budget presented in 2022, the Malaysian government decided to introduce and gradually implement an electronic invoicing system in the country. The state budget law doesn’t contain any details about the e-invoicing system, however, in a recent engagement session held by the Inland Revenue Board (IRB) of Malaysia and the […]
Zakat, Tax and Customs Authority (ZATCA) shared Amendments on the Controls, Requirements, Technical Specifications, and the Procedural Rules for Implementing the Provisions of the E-Invoicing Regulation (Implementation Resolution) for public consultation. ZATCA accepts feedback until 18 April 2023. Amendments to the Implementation Resolution introduce new functionalities for charges specification and advanced payment specification. For more […]
China has further expanded the scope of the taxpayers issuing fully digitalized e-invoices (e-fapiao): From 1 March 2023 newly registered taxpayers in the Inner Mongolia Autonomous Region shall be included in the pilot scope of digital e-invoicing. From 22 March 2023, selected taxpayers in Henan and Jilin provinces can issue fully digitalized e-invoices From 30 […]
The Thai Revenue Department announced an extension of tax incentives to promote the current e-tax systems. These incentives will be extended until the 31st of December of 2025. These measures highlight the Thai Revenue Department´s intentions, and priority given, to continuously promote the use of e-tax invoices, which are currently of voluntary adoption. Among the […]
The Malaysian Sales and Service Tax Royal Malaysian Customs Department announced the postponement of the imposition of sales tax on Low Value Goods to a date to be determined later. As discussed in our previous post on this topic, the tax on low value goods was scheduled to take effect on April 1. The announcement, […]
Effective 1 April 2023, Malaysia will be extending Sales Tax to sales of imported goods with a sale value of RM500 or less. Malaysia defines low value goods as “goods or class of goods from outside Malaysia that are sold in the online marketplace at a price of not exceeding RM500 and brought into Malaysia […]
South Korea’s latest Tax Reform proposal has recently been approved, and introduces several new measures for the year 2023, among which is the possibility of issuance of self-billing VAT invoices. The tax reform amended article 71-2 of current South Korean VAT law in order to allow the issuance of invoices for the supply of goods […]
The Indian Goods and Services Tax Network (GSTN) has announced that new Invoice Reporting Portals (IRP) have been onboarded. IRPs act as a bridge between the taxpayer (or their Accredited Service) Providers and the tax authority backend platform called the GST Portal for the purposes of e-invoice issuance. Until the new 4 were IRPs announced, […]
On February 24th, the Senior Minister of State, Mr. Chee Hong Tat, announced that within the next few years, InvoiceNow will become the default e-invoice submission channel for all Government vendors. InvoiceNow is a nationwide E-invoicing method operating on the Peppol network that facilitates the direct delivery of invoices in a structured digital format. Singapore has been implementing […]
Pakistan approved an increase to the standard sales tax rate to 18% from 17% through the Finance (Supplementary) Bill, 2023. The Bill, as posted on the Parliament website on February 21, 2023, indicates that the rate change is effective at once. The Finance (Supplementary) Bill, 2023 can be found here.
China is expanding its fully digitalized e-invoicing (e-fapiao) pilot program, currently as of 1 January 2023 in scope to issue a fully digitalized e-fapiao are Shanghai, Guangdong, Inner Mongolia, Sichuan, Xiamen, Chongqing, Qingdao, Tianjin, Dalian, and Shaanxi provinces. Additionally, taxpayers nationwide are able to accept e-fapiao issued by the selected taxpayers in the above provinces. […]
China announced the 3% VAT rate normally applied for small-scale VAT taxpayers will be reduced to 1% from January 1, 2023 to December 31, 2023. This rate reduction is in addition to the announcement of the exemption for taxpayers with a monthly turnover of less than 100,000 yuan which was previously reported on by Sovos. […]
On January 9, 2023 China announced an extension to the small business exemption from VAT. From January 1, 2023 to December 31, 2023, small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (including the amount) will be exempted from VAT. The announcement can be found here. Please note that the exemption for small-scale […]
China previously announced from 1 April 2022 to 31 December 2022, small-scale VAT taxpayers would be exempt from VAT on taxable sales income subject to a 3% levy rate. The exemption was set to expire on 31 December 2022. The original announcement can be found here.
Palau is implementing a VAT style tax known as the Palau Goods and Services Tax (PGST). The PGST will be imposed at a rate of 10% and will come into effect on 1 January 2023. Businesses with an average annual taxable supply of more than $300,000 in Palau are required to register for PGST. Mandatory […]
Effective 1 January 2023, Singapore will be extending GST to B2C imported non-digital services and goods imported via air or post that are valued up to (and including) the current GST import relief threshold of S$400. Non-resident providers of non-digital services and imported low-value goods can register under the Overseas Vendor Registration regime which is […]
Pursuant to Decree No. 15/2022/ND-CP, the standard VAT rate in Vietnam is increasing to 10% from the temporary 8% rate effective 1 January 2023. The decree can be found here.