Video: The latest tax compliance updates Q3 2023

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2023 highlights. Which European countries have announced new regulations?

Germany

Germany recently announced its plans to mandate business-to-business (B2B) electronic invoicing. The proposed date so far is January 2025, which will mark a bold leap into the digital age for the European state. Gone are the days of paper invoices; it's time to embrace the efficiency and convenience of electronic invoicing (e-invoicing).

Motivated by the EU ViDA proposal, Germany is one of the first European Countries to announce new mandates since the declared proposal in December 2022.

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Greece

In a significant transition towards digital transformation, the Greek Authorities have recently announced a move towards mandatory B2G electronic invoicing.

The official legal text, published in the Official Gazette of Greece, outlines the requirements and timelines for electronic invoicing within public contracts. This development marks a progressive step in streamlining public procurement processes and embracing digital technologies.

It is clear to see that the country isn’t taking its time, as the first stage of implementation is expected to start as early as September 2023.

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Romania

The obligation to transmit all B2B e-invoices via the governmental system will apply from January 2024. According to recent statements by the Director General of the Ministry of Finance (MF),  the January date is dependent upon the derogation requested by the government. The date and proposal then has to be approved in the next period by the European Commission.

Since the 1st of July 2022, electronic invoicing has been mandatory for business-to-government (B2G) invoices and the sale of B2B high risk fiscal products. High risk fiscal products include vegetables, roots, alcoholic beverages, mineral products and clothing, just to name a few.

Romania’s e-Factura platform is the country’s platform of choice, responsible for transmitting B2G e-invoices, as well as clearing B2B invoices relating to high risk fiscal products.

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New changes and regulations further afield

Dominican Republic

The DGII (Dirección General de Impuestos Internos) of the Dominican Republic has enacted Law 32-23, introducing mandatory electronic invoicing, proposed to start during Q2 of 2024 (within 12 months of the published May 2023 law).

Following the trend of many countries, the Dominican Republic has opted for a staged approach, depending on the size of business:

• Large businesses must comply within 12 months of the law
• Medium businesses must comply within 24 months of the law
• Small businesses must comply within 36 months of the law

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The country will use a clearance model, where the taxpayers will report the invoices to DGII and in return will receive a trackID from the tax authority. Understand more about clearance models and what the process entails for the average business.

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Malaysia

As part of the Budget 2023 presented by the Malaysian Finance Minister on the 7th of October 2022, the implementation of e-invoicing should commence in 2024, via a staged approach, led by LHDN (Inland Revenue Board Of Malaysia).

Although the country’s plans are still subject to change, the MDEC has already proposed an obligation roll-out detailing which businesses will be in scope and by when.

Will Malaysia follow the European trend of mandates or will they take a different approach?

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Saudi Arabia

The Kingdom of Saudi Arabia is pacing towards full business scope for the implementation of their Phase 2 “Integration phase” of electronic invoicing. Recently, the country announced an additional three waves of mandated taxpayers to integrate to the ZATCA clearance platform FATOORA.  

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Keep your knowledge up to date

More and more countries are introducing mandatory e-invoicing regulations, making it difficult to stay up to date.

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