Regulatory Analysis

Posted March 15, 2024 by Dilara İnal
Namibia: Budget Statement Paves the Way for e-Invoicing Implementation

Namibia is preparing to implement a VAT electronic invoicing system, aligning with global trends. As part of the 2024-2025 budget statement, the Ministry of Finance and Public Enterprises, in collaboration with the Namibian Revenue Agency (NamRA), announced plans to explore a VAT e-invoicing system that will connect business cash registers with the Integrated Tax Administration […]

Read more
Posted March 15, 2024 by Robert Pelletier
Poland: 5% VAT Rate on Basic Food Products from April 1, 2024

The Polish Ministry of Finance announced on March 12, 2024 that the temporary zero VAT rate on basic food will not be extended after March 31, 2024. The previous 5% VAT rate will apply to basic food products such as milk, eggs, vegetables, cereals, meat, and fish products from April 1, 2024. The Ministry of […]

Read more
Posted March 11, 2024 by Marta Sowińska
Bulgaria: SAF-T implementation

Bulgaria is expected to implement an obligation for taxpayers to submit Standard Audit File for Tax (SAF-T) files periodically to the country’s tax authorities. The exact timeline for implementation remains undefined, as the project is still under development and the legislation hasn’t been adopted yet. It is anticipated that the SAF-T obligation will be introduced […]

Read more
Posted March 7, 2024 by Robert Pelletier
Cote d’Ivoire (Ivory Coast): Expansion of Non-resident E-service Provider VAT Obligations

Pursuant to Explanatory Note No. 03949 published on October 9, 2023, non-resident suppliers providing digital services to taxable persons in Cote d’Ivoire must collect and remit VAT. This change expands the prior B2C cross-border e-services VAT collection obligations enacted in January 2022 to include both B2C and B2B customers. Online marketplaces are also required to […]

Read more
Posted March 6, 2024 by Robert Pelletier
Malaysia: Services Tax Rate Increase to 8% from March 1, 2024

Pursuant to the Service Tax (Rate of Tax) (Amendment) Order 2024, effective 1 March 2024, the service tax rate is increased from 6% to 8% on all taxable services except for food and beverage preparation, telecommunications, parking provision services, and logistics, which will remain at the 6% rate. The order can be found here (in […]

Read more
Posted February 29, 2024 by Carolina Silva
Malaysia: MDEC Has Released PINT Specifications

Alongside the developments of the CTC e-invoice reporting mandate in Malaysia, the Malaysia Digital Economy Corporation (MDEC) has become the Peppol Authority in the country. MDEC is implementing the Peppol framework in Malaysia and it will be available for the exchange of e-invoices, complementing the e-invoice reporting mandate, which will not handle the delivery of […]

Read more
Posted February 26, 2024 by Dilara İnal
Israel: Second Postponement of the Invoice Clearance Model

On 26 February 2024, Israeli Tax Authority (ITA) announced an additional extension until May 5, 2024, for the implementation of Israel’s invoice clearance model. The new Israeli invoicing model envisages a clearance system for invoices, under which businesses engaged in B2B transactions that exceed a specific threshold will be required to obtain an allocation number. […]

Read more
Posted February 20, 2024 by Joanna Hysi
Greece: No Input Tax Deductions on Invoices that Have Not Been Reported to myDATA

As we previously reported, the mandatory submission of income and expenses became effective from 1.1.2024 since the data reported to the myDATA platform and the data declared in the VAT returns must match and, ultimately, no modifications in the pre-filled VAT amounts will be permitted by taxpayers. Consequently, the pre-filling of VAT returns with the […]

Read more
Posted February 19, 2024 by Marta Sowińska
Poland: KSeF consultation has started

On Friday, February 16th, the Polish Ministry of Finance (MoF) conducted its first two meetings as part of a series of consultations with businesses regarding KSeF, in which Sovos has actively participated. The sessions addressed topics related to the security and performance of the KSeF system, as well as the impact of B2C transactions within […]

Read more
Posted February 19, 2024 by Dilara İnal
France: Recent Updates on CTC Roadmap

The General Directorate of Public Finances (DGFiP) has shared new details on the upcoming French Continuous Transaction Controls (CTC) mandate from the Communauté des Relais meeting on 16 February 2024. The implementation of the French CTC mandate is scheduled for September 2026. From this date, all businesses must be able to receive electronic invoices. Concurrently, […]

Read more
Posted February 8, 2024 by Robert Pelletier
Campione d’Italia: Local Consumption Tax (ILCCI) Rate Increase

Pursuant to the Ministerial Decree published in Official Gazette No. 30 on February 6, 2024, the local consumption tax rates for Campione d’Italia (imposta locale sul consumo di Campione d’Italia, ILCCI) are increasing in conjunction with Swiss VAT rate increases for January 1, 2024. The standard ILCCI rate increases to 8.1% (previously 7.7%), and the […]

Read more
Posted January 24, 2024 by Inês Carvalho
Belgium: changes in Periodic VAT Declarations and Payments postponed to 2025

The Royal Decree of December 17th, 2023, postponing the starting date for the amendments to the Belgian VAT chain was recently published. This postponement follows the enactment of the Law aiming to improve the Belgian VAT compliance chain, of March 12, 2023, which introduced measures concerning the processing of periodic VAT returns and payments. Originally […]

Read more
Posted January 18, 2024 by Robert Pelletier
Nigeria: VAT on Non-resident Sales of Goods Postponed

Pursuant to a notice issued by the Nigerian Federal Inland Revenue Service (FIRS) on January 15, 2024, the implementation of the Guidelines on Simplified Compliance Regime on VAT for non-resident suppliers of goods to Nigeria through digital platforms, scheduled to commence from January 1, 2024, has been postponed. The postponement is to allow FIRS to […]

Read more
Posted January 8, 2024 by Robert Pelletier
Malaysia: Sales Tax on Low Value Goods from January 1, 2024

The Royal Malaysian Customs Department announced that cross-border sales of goods valued at MYR500 or less are subject to 10% sales tax when sold to businesses and consumers in Malaysia effective January 1, 2024. The low value goods regulations can be found here.

Read more
Posted January 8, 2024 by Robert Pelletier
Vietnam: Extension of Temporary 8% Standard VAT Rate Reduction until June 30, 2024

Pursuant to Decree 94/2023/ND-CP as published on December 28, 2023, supplies of goods and services subject to the standard 10% VAT rate will continue to apply the temporary 8% standard VAT rate until June 30, 2024. The 2% VAT rate reduction, which was previously set to expire on December 31, 2023, has been extended by […]

Read more
Posted January 8, 2024 by Charles Riordan
Czech Republic: VAT Law Changes

Government Bill 488, now published in the Official Gazette of the Czech Republic, makes several changes to the country’s VAT Act, the most significant of which are as follows: The country’s two reduced rates of 15% and 10% are replaced by a single reduced rate of 12%; Books, including electronically supplied books, are exempt with […]

Read more
Posted January 8, 2024 by Charles Riordan
Luxembourg: 2024 Rate Changes

On January 1, 2024, Luxembourg’s temporary 1% decrease in several of its VAT rates will expire. Luxembourg’s VAT rates will return to what they had been prior to January 1, 2023, as follows: 17% standard rate (was 16% for calendar year 2023) 14% reduced rate (was 13% for calendar year 2023) 8% (was 7% for […]

Read more
Posted January 8, 2024 by Robert Pelletier
Germany: Temporary Reduced Rate for Restaurant and Catering Services Expires December 31, 2023

Pursuant to Federal Gazette No. 39/2022 published on October 29, 2022, the temporary 7% reduced VAT rate applied to restaurant and catering services, excluding the sale of beverages, in Germany expired on December 31, 2023. These services have been subject to the standard 19% tax rate since January 1, 2024. The law can be found […]

Read more