Global e-Invoicing News - Order2Cash

This map gives a quick insight into which mandates or developments have occurred already in 2022 and looks ahead to what mandates are expected to go live in the remainder of this year. Use the buttons at the bottom of the image to filter and hover over a country of interest to learn more.

Europe

Albania
Albania initiated its new online billing system in 2020. Taxpayers must use certified software to transmit e-Invoices to a centralized invoicing platform in real-time. Invoices can be exchanged electronically or in paper form. There are two types of certified software in place, so-called fiscalization systems:

  • For cash transactions (e.g. point-of-sale), invoices should be issued using approved fiscal devices with printing capabilities.
  • For non-cash transactions, invoices should be issued through an approved software solution which is capable of performing certain functions, including digital signing.

Businesses are affected by the mandates, depending on size and kind of business, from Sep 2020 onwards:

  • The Sep. 2020 mandate covers: All cash transactions by taxpayers subject to VAT and corporate income tax (CIT) with an annual turnover exceeding 8 million lek.
  • From Jan. 2021 the mandate applies to: Cash transactions by taxpayers subject to VAT and simplified CIT with an annual turnover between 2 million and 8 million lek; Cash transactions by taxpayers subject to simplified CIT with an annual turnover not exceeding 2 million lek.
  • From July 2021 onwards the mandate also applies to: Non-cash B2G transactions.

Albania also begins to mandate B2B and B2C e-Invoicing. From  1 July  2021, any company that conducts B2B transactions must declare e-Invoicing to the General Directorate of Taxes. And as of Sept. all companies that conduct B2C transactions must also comply.

Belgium
The Walloon Region in Belgium has announced the obligation to create e-Invoices for all B2G transactions as of 1 January 2022.

Belgium Minister of Finance just confirmed its 2022 budget plan on rolling out a country-wide B2B and B2C e-Invoicing mandates. No timelines for implementation have been set yet.

Cyprus
B2G e-Invoicing is mandatory for central authorities and sub-central authorities to receive and process compliant e-Invoices. However, it is voluntary for the suppliers of government sectors to issue e-Invoices.

The Cypriot Ministry of Finance has now decided to make e-Invoicing mandatory in line with the Digital Agenda for Europe. The new mandate is planned to be implemented as of 1 Jan. 2022.

Cyprus is also seeking to implement B2B e-Invoicing in the near future.

France
B2G e-Invoicing became mandatory in stages from 2017. As of 1 January, 2020 all economic operators must submit compliant e-Invoices to central authorities, regional authorities and local authorities who must be capable of receiving and processing e-Invoices.

France has published its timeline for the B2B e-Invoicing mandate:

  • July 2024: All businesses shall be ready to receive e-invoices; about 300 large invoice issuers will be required to fully support e-invoicing and e-reporting through the system of the tax authority or accredited private industry solution providers.
  • January 2025: About 8000 mid-sized suppliers will be required to support the issuance of e-invoices and e-reports.
  • January 2026: The remaining businesses have to support the system.

Germany
Starting 27 November 2020, all public contractors, namely federal, regional, and municipal administrations and energy companies, schools, and hospitals, must now submit e-Invoices to the federal administration. There is no deadline yet for issuing e-Invoicing by contractors to state governments and local authorities. Every regional state (Lander) has been left to determine how they wish to interpret and handle the mandate.

Earlier in December 2021, the new German coalition has decided to introduce a nationwide e-Invoicing mandate. The implementation plan has been included in the latest coalition programme for 2021-2025.

Greece
B2G e-Invoicing is mandatory for national, regional and local contracting authorities to receive and process e-Invoices since April 2020 .

Greece has mandated e-Invoicing for all B2B transactions. This mandate came into effect on 31 October 2020.

Yet. the government announced that the mandatory introduction of e-Invoices and e-books via MyData had been delayed from 1 July 2021 to 1 Oct. 2021. This was due to the economic disruption caused by the COVID-19 pandemic. The timeline was as follows:

  • From 1 Oct. 2021: Businesses with double entry accounting books with a turnover of over EUR 5000000; Businesses with single entry accounting books with a turnover of over EUR 100 0000
  • From 1 Nov. 2021: The rules applies to all other businesses.

On the other hand, the introduction of  transactional-level reporting is now mandatory – so companies prepared for the 1 January deadline may still proceed now with the submission of Q4 invoices. Businesses that have registered with third-party e-invoice providers must still start submitting now.

However, it only became compulsory from 1 July 2021. The decision was taken by the Ministry of Finance and Greek tax office, AADE.
Records to be held digitally include two sets of data:

  • e-Invoices: Sales VAT invoices (domestic B2B transactions). Plus records  of  Purchase  e-Invoice  that  have  been received. Invoices details must include accounting code details – unlike regular e-invoices.
  • e-Books: accounting General  Ledger  transactions; Cash ledger  Payroll;  and  Fixed  asset  transactions including depreciation provisions. B2C and cross-border transactions, not included in e-Invoice data, will be added to the e-books.
    The above digital records will be transmitted automatically to the AADE, via the myDATA portal. The filing deadline is set to be the 20th day of the following month.

Italy
B2G e-Invoicing is mandatory since 2014. The Italian Revenue Agency has recently approved new technical specification rules for e-Invoicing for businesses. The specifications include a new XML requirement for FatturaPA that became mandatory as of 1 January 2012.

Each Italian e-Invoice has a parameter describing its type – TipoDoumento. The new versions of Fattura (1.6.1) and Fattura PA (1.3.1) introduce 11 new document type codes. this will result in a significant increase in the required description accuracy of transmitted invoices. Most importantly, as of January 2021 Italian taxpayers will have to transmit many more e-Invoices through the SDI (Sistema di Interscambio) platform than before, including all cross-boarder inovices, which will be mandated as of 1 July 2022.

B2B e-Invoicing became mandatory as of 1 January 2019. It’s expected that the mandate will be also expanded to include small businesses and freelancers with flat rate taxation.

Latvia
B2G e-Invoicing became mandatory for central and sub-central/ local authorities to receive and process e-Invoices since April 2020.

On 12 Oct 2021, The Latvian government have proposed the introduction of B2G and B2B mandatory e-Invoicing starting from 2025.

Luxembourg
B2G e-Invoicing is mandatory for central and sub-central/ local authorities to receive and process e-Invoices. It is also mandatory for economic operators to submit e-Invoices.

Luxembourg expands its B2G mandates to all companies. The deadlines was as follows:

  • 18 May 2022 for large companies
  • 18 Oct. 2022 for medium-size companies
  • 18 March 2023 for small and newly created businesses of all sizes.

Poland
Poland has postponed their  B2G  e-Invoicing mandate deadlines. The deadline for large companies and enterprises came into effect in December 2020 but the deadline for SMEs has been pushed to 1 June  2021, and Dec 31st, 2021 for micro-enterprises. Issuing e-Invoices has been working on a voluntary basis, while the receiving of e-Invoices is mandatory for all central and local authorities. All the public authorities have to register their accounts on the PEF platform, thus every invoice sent in a structured electronic way must be transmitted through the platform. Economic operators can also use the platform which is free of charge, but they can also decide to use other market solutions.

The Polish Ministry of Finance published a draft  law on the introduction of e-Invoicing in B2B transactions on 5 Feb 2021. e-Invoicing will be processed via a centralized government platform called the National e-Invoicing System (KSeF). Taxpayers will be using the system voluntarily from Jan. 2022 (initially scheduled for Oct. 2021). It will become mandatory in Jan. 2023. This will replace the existing SAF-T (JPK-J) monthly reporting, which itself is due to replace the Polish VAT return this year. It will model itself on the successful Italian SdI pre-clearance model.

Portugal
Portugal’s B2G e-Invoicing mandate came into force on 31 Dec 2020, for large companies. The deadline for SME’s is  slated for 1 July 2021 and Jan. 2022 for micro-enterprises. ‘Entidade de Serviços Partilhados da Administração Pública’ (eSPAP) will coordinate and is responsible for receiving and sending e-Invoices between public contractors and public authorities. However, the central platform eSPAP is, as we understand it, not yet fully operational, with several local authorities not connected and so we expect further delays to these deadlines.

B2B e-Invoicing is not yet mandatory, although from 1 January 2021 the government requires that taxpayers must apply for a unique series of invoice numbers from the government in advance of issuance. They must then use certified software to produce a QR code on each invoice including this unique document code (ATCUD).

Romania
On 13 Sept. 2021, the Ministry of Public Finance released the first draft on implementing B2G e-Invoicing via the national e-Invoicing system RO e-Factura. This system became operational as of 1 Oct. 2021. Romania is aiming for a country-wide B2G e-Invoicing mandate and hopes to extend to B2B mandate in the future. B2G e-Invoicing is currently mandatory for central, regional and local contracting authorities to receive and process e-Invoices.

B2B e-Invoicing is used on a voluntary basis. From Jan. 2022, Romania will introduce the obligatory SAF-T reporting, known as the D406 Informative Declaration. About 3000 large companies will be required to submit SAF-T. SAF-T is an international standard for digitally sharing accounting data between companies and national tax authorities.

San Marino
On May 26 this year, the State Secretariat for Finance and Budget of San Marino and the Italian Ministry of Economy and Finance signed a new agreement for B2B transactions between two countries. Businesses in San Marino with an annual turnover of more than 100.000 euro are required to issue e-Invoice as of 1 July 2022. Between 1 Oct 2021 to 30 June 2022, companies are able to do so voluntarily.

Serbia
Serbia is aiming to mandate B2B & B2G e-Invoicing by 2022. The Minister expected the law to be approved by the end of 2020 and for its implementation to begin on 1 January 2022. The second law (on e-Invoices) is expected to be adopted in the first quarter of 2021, with implementation due to begin on 1 May 2022. All public and private invoice issuers will be required to start sending e-Invoices to public authorities since then. And as of Jan. 2023,  e-Invoicing willl become mandatory for all transactions between private sectors (B2B).

Slovakia
Ministry of Finance of the Slovak Republic plans to establish a pre-clearance system on e-Invoices. Test for B2G invoices is scheduled for the end of 2021.

Tests for B2B and B2C invoices will follow after the test for B2G e-Invoices. The Ministry of Finance plans to launch the system officially at the beginning of 2023 at the latest.

Further reading: For more detailed information, check the CEF website which contains progress and status updates for each EU member state.

Latin America

Ecuador
In Ecuador, the e-Invoicing rollout process has been underway since Jan 2019. It is currently mandatory for two groups of taxpayers (those who carry out commercialization activity of heavy machinery and road equipment; and individuals or entities carrying out wholesale and retail operations of liquefied gas). It is expected to become mandatory for all taxpayers in 2023.

El Salvador
El Salvador is paving its way ahead towards the use of electronic invoices. The Ministry of Finance of El Salvador began a pilot program in 2020, with the participation of 50 large companies from various sectors. The plan is to incorporate into the e-Invoice issuance system both small and medium-size enterprises by the end of 2021. Currently, the date when e-Invoicing becomes mandatory has not been set yet.

Panama
Panama began the implementation of e-Invoicing  in  2016 with the establishment of the Panamanian Electronic Invoicing System (SFEP). The SFEP rollout was composed of 4 phases: Design, Construction, Voluntary Pilot Plan and Widespread Adoption. Currently, the adoption timelines are already available for certain taxpayer groups:

  • 1 Jan. 2022: all newly registered taxpayers  with tax ID must issue e-Invoice via SFEP
  • 30 July 2022: B2G e-Invoicing will become mandatory
  • 2 Jan. 2023: Taxpayers who participated in the Pilot program must issue e-Invoice for all domestic transaction

On the other hand, starting back in August of 2020, the Government of Panama enacted a new Decree, requiring all taxpayers excluded from having to use electronic fiscal machines attached to their POS systems to start issuing e-Invoices. The DGI still needs to define specific dates for certain groups of taxpayers to meet this requirement.

Paraguay
Paraguay began its roll out towards mandatory e-Invoicing under SIFEN (the National E-invoice System). The roll-out plan of SIFEN started in 2018 has been divided into the following 3 steps: Pilot Plan-Voluntary adhesion-Generalisation. The final goal is for all taxpayers to issue e-invoices.

To date, the government of Paraguay is already proceeding towards the implementation of mandatory e-Invoicing for certain taxpayers. The timeline is as follows:

  • 1 Jan. 2022: 14 companies that were part of the initial pilot group will be required to issue e-Invoices.
  • 1 April 2022: the remaining 246 companies that were in the initial pilot group will be required to issue e-invoices.

On the other hand, the Paraguayan tax authority has also released an e-Invoicing platform e-Kuatia for taxpayers to issue and deliver electronic fiscal documents. Taxpayers will have to notify SIFEN and fulfill the requirements for the issuance and reception of e-invoices.

 

Canada & North America

United States of America
The Business Payments Coalition, an organization that advocates improvements in B2B payment-related issues, is leading a 3-year effort to explore the feasibility of developing and implementing a standard, ubiquitous B2B electronic invoice and processing platform, based on the EU’s PEPPOL  model  and Australia’s public-private partnership. This feasibility study is nearing completion and in the last few weeks, the coalition published a report entitled: e-Invoice Exchange Framework: Approach to Managing a Federated Registry Services Model in a Four-Corner Network. This is a major milestone for the BPC and will be of great interest to any business operating in North America. In the second half of 2021, BPC will be busy preparing for the in-market pilot program for early 2022, in which the Coalition will test the exchange of e-Invoices between businesses by establishing a secure e-Invoice delivery framework between providers. We will keep a close watch on the result and further development.

Canada
Canada is gearing up for the full adoption of e-Invoicing in the public and private sectors. The Canada Revenue Agency (CRA) has published a run of circulars on e-invoices, including the e-Invoicing guide (IC05-1RA) that outlined the legal e-Invoicing requirements in Canada.

 

Middle East & Africa

Egypt
The Egyptian Ministry of Finance has completed its e-Invoicing pilot period and entered the first phase of mass implementation, with 134 companies selected to comply. In Feb. 2021, the 2nd compliance phase started with more companies on board. By July 2021, the B2G e-Invoicing mandate became active for all public sector companies, economic authorities and state services. Other companies will be added gradually.

Companies must first send their e-Invoices  to the tax administration for their validation. Once validated, they can be delivered to recipients. e-Invoicing must also be electronically signed to ensure the security of the information exchanged.

Regarding B2B e-Invoicing, all B2B e-Invoices will be mandated by April 2023

Kenya
The Kenya Revenue Authority (KRA) announced the new Electronic Tax invoice roll-out plan that officially began on 1 Aug. 2021. All VAT-registered taxpayers will be required to comply with the new electronic invoice system requirements by 31 July 2022.

KRA has also published a list of approved suppliers of Electronic Tax Registers. These suppliers will help the taxpayers with the ETR activation and authentication by KRA. Once it’s done, taxpayers will be able to send tax invoice details to KRA.

Nigeria
Nigeria has introduced a new e-Invoice system for import and export businesses in Nigeria that comes into effect on 1 Feb. 2022. All import and export operations will require the submission of e-Invoices authenticated by authorized dealer banks as part of the payment documentation on the Nigeria Single Window Portal-Trade Monitoring System (TRMS).

Saudi Arabia
On 4 December 2020, The Saudi Arabian Monetary Authority (SAMA) & the General Authority of Zakat and Tax (GAZT) signed an agreement on the implementation of e-Invoicing.

On 28 May 2021, ZATCA (previously known as GAZT) published the final resolution of controls, requirements, technical specifications for e-Invoicing mandate. The timeline is as followa:

  • Phase 1: 4 Dec. 2021 for generation and archiving – all taxpayers will be required to generate e-invoices in XML format.
  • Phase 2: 1 Jan. 2023 for integration and clearance – all taxpayers will be required to have integrated with ZARCA e-Invoicing platform

Uganda
Beginning 1 July 2020, The Uganda Revenue Authority (URA) began rolling out the Electronic Fiscal Receipting and Invoicing System (EFRIS) to provide e-Invoicing and e-receipt solutions.

As of 1 Jan. 2021, all taxpayers are required to use EFRIS to report e-Invoices and sales receipts to the URA.

 

Asia & Australasia

Australia
Australia is currently proactively promoting the value of e-Invoicing in preparation for the e-Invoicing mandate in July 2022. The Commonwealth will mandate e-Invoicing for all agencies by 1 July 2022, with over 80% of invoices being able to be received electronically by 1 July 2021.

China
China has been pushing the digitization of general VAT invoices for years. New progress is being made as the Chinese State Tax Administration (STA) has provided a concrete plan allowing for Special VAT e-invoices (e-fapiaos). Special VAT fapiao is usually used for B2B transactions. It’s issued by general taxpayers to customers when selling commodities or providing taxable services. Certain taxpayers of more than 26 regions in China can now voluntarily issue e-fapiaos via China’s Golden Tax System.

The electronic tax invoice will be represented in an OFD format, a Chinese-specific file format that requires a reader that is available from the Tax Office. The invoice must be archived in the format it was created in. The STA has been running a pilot with a limited number of major taxpayers and is expected to include more provinces in the pilot by the end of 2020 or early 2021. It is expected that the Special VAT e-Fapiao will be mandatory for all relevant tax subjects. We are awaiting a decision on when this program will extend to all taxpayers. Currently, STA still allows the usage of paper Special VAT invoices. The buyer may demand the seller to send a paper invoice.

Japan
The e-Invoicing Promotion Association (EIPA) was established in July 2020 and has published the first version of the Japanese standard specifications and domestic standard specifications of e-Invoicing, in accordance with the International PEPPOL standards (https://www.eipa.jp/). Japan’s Digital Agency has also established its Access Point with PEPPOL Network on 14 Sept. 2021. From here, the Digital Agency will become the central government PEPPOL authority in Japan. EIPA aims to enable business operators to use software that is compatible with e-Invoicing by the autumn of 2022, and fully roll out a new Japanese e-Invoicing system by the autumn of 2023.

New Zealand
New Zealand has not yet decided on when the official deadline for the mandate becomes valid, but based on current information we can expect the mandate to be implemented by the end of 2022.

Philippines
Early in 2019, the Department of Information and Communications Technology released The Philippine Digital Transformation Strategy 2022, outlining the government strategy to achieve the digital transformation by launching a new eGovernment system by 2022. As part of the plan, the e-Invoicing/e-receipt program is expected to be implemented in a pilot phase by 2021 and become mandatory by 2022, based on the South Korean model.

Thailand
In 2016, the Thai government introduced the national policy of “Thailand 4.0”, outlining the two major long-term objectives: to transform Thailand into a “Digital Economy” and thus become an “advanced economy” by 2032. Currently, the government is eyeing to pilot the e-Tax invoicing system (e-Tax invoice and e-Receipt) for all business operations in Thailand in 2021. An e-Tax invoice is an invoice, credit note, or debit note provided in electronic format with a digital signature or time stamp under the e-Tax System by email. Like the e-Tax invoice, an e-Receipt is a receipt document provided according to the Thai Revenue Code in an electronic format.

Vietnam
Vietnam will be mandating e-Invoicing for all enterprises from 1 July 2022. Businesses are encouraged to apply early and start to implement e-Invoicing for their businesses.