E Invoice Compulsory

[Catrin Muzquiz]

Taxablepersons (VAT-registered businesses) doing business in the EU are subject to a single set of basic EU-wide VAT invoicing rules and, in certain areas, national rules set by the individual Member State.

An invoice is required for VAT purposes under EU rules for most business-to-business (B2B) supplies and for certain business-to-consumer (B2C) transactions. There may also be specific national rules on transactions requiring an invoice.

For B2B supplies, a business must issue an invoice whenever goods or services are supplied to another business or a non-taxable legal entity (e.g. local authorities, associations etc. that do not charge VAT), except:

Once all the information above is included on an invoice (depending on the case and EU Member State), the invoice acts as proof that allows the business to deduct VAT in the EU Member State concerned. No EU Member State may prevent this by requiring extra information in the invoice.

Government ordinance 120/2021 establishes the basis and operational framework for the national e-Invoicing system. And government ordinance 130 published on 12/17/2021 already introduced mandatory issuance as of July 2022 for companies whose activity is linked to product categories considered high tax risk (susceptible to tax evasion). These categories are defined in ANAF 12/2022 ordinance published on January 6th, 2022. Fruit and vegetables, alcohol, construction, mineral products, and clothing and footwear, are among the categories of companies considered susceptible to tax evasion.

The business-to-consumer (B2C) e-invoice will be mandatory in Romania. B2C transactions are defined as those occurring between a taxable entity established in Romania and final consumers. Like B2B invoices, those transactions must be sent to the national platform RO-e-Invoice.

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The RO e-Factura platform has been available since November 2021 for both the exchange of invoices with public administrations (B2G) and between private companies (B2B). Recipients will have 60 days to download their invoices.

After transmitting the invoice electronically the platform will assign an identification number to the invoice. The system will perform several validations on the documents, both syntactic and semantic.

Once validated, the system will generate an automatic response and, if the validation is correct, the signature of the Ministry of Finance will be applied. This guarantees that no changes have been made to the content of the invoice.

In the case of companies that must issue mandatory electronic invoices from July 2022, the receivers do not have to be registered. These issuers must make the invoices available to the recipients in accordance with the provisions of Article 319 of Law 227/2015 of the Tax Code. Learn about our Business@Mail solution and optimize your electronic document sending operations.

Our international e-Invoicing platform can adapt your management and accounting systems to the requirements in force in the different countries where you are present. If you need more information about any of our solutions please leave us your contact details and our team will reach out to you as soon as possible with no strings attached.

We provide you with this platform to guarantee the issuance of electronic invoices and their reception by your partners who do not have an integrated solution. Business@Mail has an interface designed to provide an optimal user experience. Both senders and receivers can preview and download documents or perform customized searches and queries.

The Zambian Revenue Authority (ZRA) has announced that starting from July 1, 2024, all VAT-registered taxpayers are required to issue electronic invoices through the Smart Invoice software solution implemented by the ZRA.

Currently in Zambia, devices known as Electronic Fiscal Devices (EFD) are used to record all commercial transactions. These are physical devices that send invoice and receipt information in real-time to the tax authority.

However, from July 1, 2024, it will be mandatory to use the Smart Invoice electronic billing system, a software-based solution implemented by the ZRA. Smart Invoice is an electronic billing system designed to manage all invoices and inventory data, which will be transmitted to the ZRA by taxpayers.

The implementation of EFDs only covered Value Added Tax (VAT) and Insurance Premium Levy (IPL), but Smart Invoice will cover more types of taxes or levies such as VAT, Sales Tax, Rental Income, IPL, Tourist Tax, and the Local Electricity Consumption Tax. Smart Invoice will also feature an inventory management component.

Taxpayers must register with Smart Invoice and obtain validation from the ZRA. They must also download the Virtual Sales Data Controller (VSCD) communication module to send or receive transaction data to and from the Smart Invoice server. It acts as a connecting system that links the ZRA's smart billing systems with the ERP systems of businesses.

Electronic documents must be sent to the VSCD linked to the ZRA, which then sends the data in real-time. The ZRA will validate the electronic documents using a unique identifier code (Mark ID) and a QR code.

While creating a sales invoice please make it mandatory to select the name of the customer from the customer drop down list ? Because if one misses to select a customer , the invoice is treated as a cash invoice with full payment done.

Invoices without names attached are also completely ignored, for tax purposes at least.

None of my tax reports were anywhere near to adding up, then I realized it was only working for named customers. Spent a little bit of yesterday putting in a few names.

Yeah, I will make it work the same way on purchase invoices, credit notes and debit notes. Just want to wait a few days in case there is some fundamental issue with this change before rolling over to other parts of the system.

This implementation will take some time getting used to, since I was really used to the old way of entering a sales invoice. I was also a bit disappointed to see the qty column remain empty after I picked a sales inventory item.

Maybe this topic enables the possibility to be able to create a sales invoice from within the customer view, like you can create a credit note from sales invoice view mode. That would probably involve having a view button on the customer list screen where there is now only a edit button.

Since customer is now mandatory, would it not be a good idea to be able to create a sales invoice from the customer detail view. Then you have already chosen a customer, which could then be prefilled on new sales invoice.

Thanks, @Hans. Your desire is clear now. These sound like good ideas. In general, I think the more ways one has of getting to the desired information or transaction entry the better, because the application can support more workflows. I have no idea if these things would be easy or hard to implement.

You can create new sales invoice from customer list view by clicking on the link in Sales invoices column of the customer list view. This will show you all invoices already created for customer incuding balance due, so you can immediatly see if your customer has unpayed invoices. From there you can use the button New Sales Invoice and have customer prefilled.

Hi

If invoices now depend on customers, it no longer makes sense to be able to enable or disable these modules separately.

I was a bit confused, having a small project where I do use sales invoices, but customers module was off.

I could not open my invoices any more, and was a little startled!

In its 1042nd meeting on 22 March, 2024, the Federal Council1 approved the Growth Opportunities Act2. This legislative package includes important regulations for the introduction of mandatory e-invoicing in Germany.

Now that the e-invoicing obligation for the B2G (Business-to-Government) sector has largely been implemented in Germany, the e-invoicing obligation for domestic invoices in the B2B sector will start gradually from 01 January, 2025 to the end of 2027. The introduction of a reporting system in Germany in order to combat VAT fraud is planned to start in 2028.

The obligation to issue an electronic invoice applies exclusively to business relationships between companies (B2B). In addition, both the supplier and the recipient must be residents in Germany (or in territories pursuant to 1 para. 3 UStG).

In order to be considered a resident in Germany, either a registered office, a management or a permanent establishment (involved in the corresponding turnover) in Germany is required. If there is no registered office, domicile or habitual residence in Germany pursuant to 14 para. 2 sentence 3, UStG-E is also sufficient. Therefore, VAT registration in Germany without residence does not constitute an obligation to issue electronic invoices.

The basic obligation to issue invoices electronically enters into force on 01 January, 2025. However, in order to take into account the expected high implementation costs for companies, the legislature has introduced transitional regulations for the period from 2025 to 2027.

Starting 01 January, 2025, the receiving of e-invoices in accordance with EN 16931 will be mandatory for all German B2B transactions. The Federal Ministry of Finance (BMF) already declared on 02 October, 2023 that ZUGFeRD from version 2.0.1 and XRechnung generally represent an invoice in a structured electronic format that meets the requirement.

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