This report anticipates the introduction of mandatory B2B e-invoicing beginning in 2025. In October 2021, the Latvian Cabinet of Ministers reviewed and endorsed a report on a system for electronic transfer of documents prepared by the Ministry of Finance. Although there is still no implementation timeline, it is likely that Belgium will implement e-invoicing gradually, starting with mandates for the largest companies as early as 2023 and extending them to smaller companies later. In a policy note published in October 2021, the Belgian Minister of Finance confirmed the intention for a phased introduction of mandatory e-invoicing in business-to-business (B2B) transactions. Several countries (Belgium, Latvia, Romania, Spain, Slovenia, and Slovakia) have started the legislative procedure to implement the invoice clearance model but have not yet applied for EU authorization. Italy has been applying mandatory e-invoicing since 2019 France is planning to roll out its e-invoicing mandate in July 2024 and Poland will implement it a year earlier, in April 2023. Italy, France, and Poland are the only three countries to have received it so far. To implement an invoice clearance model, countries need first to obtain authorization from the European Commission. National e-invoicing formats developed by the EU member states are examples of an EN 16931 compliant CIUS specification. Many countries (or trading parties) go beyond them by publishing Core Invoice Usage Specifications (CIUS) that prescribe more detailed rules for invoice content. EN 16931 can be implemented using two XML formats (syntaxes): OASIS Universal Business Language (UBL) 2.1 and UN/CEFACT Cross Industry Invoice (CII) 16B.īoth UBL and CII specify the structure of the XML file that encodes the electronic invoice: They are a kind of minimum standard for complying with EN 16931. Semantic models must be translated into a machine-readable language to be used for practical purposes. As it is described in natural language, it cannot be directly used to transfer data. A semantic data model is technology neutral. The European standard is a semantic (abstract) data model listing the essential elements that an e-invoice needs to have to be legally and tax compliant. But while these take many forms, they all need to comply with the European standard for e-invoicing (EN 16931) developed by the European Committee for Standardization. Many Ways to ComplyĮU countries use a range of e-invoicing formats: PEPPOL BIS, OIOUBL, Facturae, Factur-X, XRechnung, ZUGFeRD, Svefaktura, and many others. A PDP can be an external service provider or an internal solution that has been certified by the French tax administration to collect and report invoice data. In July 2024, France will begin mandating that businesses use a plateforme de dématérialisation partenaire (PDP) for invoicing. No country in the EU has instituted this model yet, but France is on track to be the first. In the second, called decentralized clearance, the tax administration outsources the clearance process to accredited service providers who validate invoice data and communicate it back to the tax authorities. Italy was the first EU country to implement this model when it launched the Sistema di Interscambio in 2019. The first, called centralized clearance, validates and exchanges data through a central platform deployed by the tax administration. There are two main types of invoice clearance models. This delay-between transaction and reporting-makes it hard for tax authorities to detect suspicious transactions or tax under-reporting in a timely manner. It is more efficient than traditional periodic tax reporting obligations, which transfer data to the tax administration on a monthly or quarterly basis. The Invoice Clearance ModelĪn invoice clearance model provides tax authorities with visibility into a transaction nearly as soon as it occurs and before the invoice is issued to the recipient. With that in mind, I want to clarify some basic features of the landscape, including how an invoice clearance model operates, how e-invoicing formats differ across Europe, and what changes businesses should expect from different EU countries over the next few years. The requirements for complying with mandatory e-invoicing vary by jurisdiction, and businesses with cross-border operations need to determine how to address this patchwork of obligations effectively. Many of the most confusing changes revolve around an emerging standard called “invoice clearance,” which requires businesses to issue invoices in a machine-readable format and have them validated by tax administrators or outsourced providers, before sending them on to customers. Businesses in the EU face an increasingly complicated tax-compliance environment, especially when it comes to the way they manage invoices.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |