Video: The latest tax compliance updates Q1 2023

You are reading 2023 Q1's updates.

New regulations on the roadmap

European Union

The European Commission adopted the proposed Council Directive amending VAT Directive 2006/112/EC in relation to VAT rules for the digital age.

According to the EC proposal ‘VAT in the Digital Age’, Member States will be required to adopt the new definition of electronic invoicing, aligned with the Directive 2014/55/EU on electronic invoicing in public procurement. In addition, the requirement for the recipient’s consent to receive an electronic invoice will be removed.

The new legislation grants the Member States the right to mandate the issuance of electronic invoicing, while ensuring alignment with the EN 16931 standard. And Member States need to adapt their laws accordingly until 31 December 2023.

To explore the mandates even further and to understand the changes for the average European business, take a look at our blog.

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Guatemala

Guatemala’s tax authority has announced that their e-invoicing mandate will be applicable for all taxpayers from the 1st of April 2023.

From April, small businesses will need to follow the same regulations as all other Guatemalan businesses by transitioning to mandatory electronic invoicing. This is the last milestone in Guatemala’s mandatory e-invoicing rollout, which means paper invoices are no longer valid for VAT deductions in the country.

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Bahrain

It is rumoured that Bahrain plans to introduce mandatory e-invoicing in January 2024. The Kingdom organised a tender with a deadline implementation for January 2024. We will be keeping track of the progress and announcements.

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Regulation updates

Slovakia

Slovakia’s national e-invoicing platform IS EFA (Informačný system elektronickej fakturácie) has launched a test operation. The launch has been delayed and the platform is only available for testing purposes for certain segments within the Ministry of Finance. From April 2023, more segments will be able to test the platform. The aim is to have a platform in place which mandates business-to-government electronic invoices.

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Japan

From the 1st of October 2023 a new system concerning the JCT (Japanese Consumption Tax) regime comes into force: Qualified Invoice System.

Under the scope of the system the JCT registered business will be required to add additional information on their invoices. The change states that a qualified invoice must include a breakdown of applicable tax rates for that given transaction. Under the new system, only registered JCT payers can issue qualified tax invoices, and on the buyer side of the transaction, taxpayers will only be eligible for input tax credit where a qualified invoice has been issued. In order to be a registered invoice issuer businesses need to apply to the National Tax Office until 31 March 2023.

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How to stay up to date

At Unifiedpost Group, we regularly update our tax compliance and e-invoicing roadmap so that your business has the most vital information they need. To make sure you receive our updates follow us on LinkedIn.