Compliance Services

The CFDI 4.0 and the Payment Receipt 2.0 in Mexico has once again been postponed and will now become mandatory to use on 1^st January 2023.

CFDI 3.3 will not be compliant from 1^st January 2023 onwards, which means that it will be rejected on and after this date. To this effect, it’s imperative that businesses are prepared to accommodate CFDI 4.0 in advance of 1^st January 2023 onwards.

Tungsten is now live with CFDI 4.0 and the associated Payment Receipt.

Our Web Form facility supports both CFDI 3.3 and CFDI 4.0 – so you can use any version as preferred up until 31 December 2022.

If Integrated Suppliers want to use the new CFDI 4.0 version, they will need to contact our Support team on www.tungsten-network.com for the re-work of their profile.

The post-Covid recovery appears to be slow in nature, as reflected through the extension of reduced rate many countries are deploying.

Greece has announced a third extension of the VAT rate on certain products, from 24% to 13%. These products include:

• coffee;
• transport;
• non-alcoholic drinks;
• cinemas;
• gyms and dance schools; and
• tourism packages.

The VAT rate was first reduced on 30 June 2020, and subsequently extended on 1 October 2021 and again on 30 June 2022.

The reduced rates are expected to last until 1^st January 2023.

Slovakia has now delayed plans to implement e-invoicing in the country. The new revised timeframes are as follows:

• June 2022: a test phase
• January 2023: first phase for B2G, G2G and G2B transactions

The second phase is also expected to start in 2023 and will be extended to also include B2B and B2C transactions.

Country VAT rates are under constant revision and review. The High Council of Finance in Belgium has indicated that it is contemplating increasing the VAT rate to 22%.

This is by no means definitive, but Tungsten Network will keep up to date with any developments and incorporate any new rates in our system.

As Europe enters a post-Covid recovery era, countries are conscious of the balance between promoting a return to previous rates and retaining reduced rates. Recent events in Ukraine and rising food costs have hampered the progress of countries who had hoped to return to pre-Covid fiscal measures.

To this effect, Ireland has extended the reduced VAT rate for hospitality and tourism through February 2023. This was initially scheduled to expire on 1 September 2022.

Tungsten Network supports all valid Irish rates on our portal.

Many countries require businesses to use certified software to produce the legal invoice in a country. Portugal is a good example.

This means that Tungsten has had to adopt its ‘standard’ offering to customers. We do not create the legal invoice on behalf of suppliers in Portugal, but rather ask the suppliers to attach the legal invoice to our system.

Similarly, Spain has announced that as of 1^st January 2024, only state or VERI*FACTU approved invoicing software may be used to prepare and submit invoices.

Tungsten will need to assess the requirements the Spanish government has proposed for potential certified software providers from 1^st January 2024, when the changes are expected to take place. Tungsten Network is analysing these requirements and seeing how we can best support our Spanish market considering these new requirements.

Tungsten Network is aware of the growing traction of e-invoicing in Spain. We are closely monitoring e-invoicing developments in the country.

The Irish government is actively promoting e-invoicing throughout the country to raise greater awareness around e-invoicing.

To this effect, it has published guidelines which assist suppliers in sending invoices to the public sector.

Ireland has recently stated that it will draw inspiration from the e-invoicing models in other countries as a basis for its own e-invoicing model. It will be interesting to see the developing e-invoicing landscape and the appetite for e-invoicing in the country further to this campaign driving greater recognition of the sector.

In response to rising costs, the Latvian government is proposing to reduce VAT on food. Such a reduction is expected to amount to a deficit of 100 million Euros in the State Budget, following trends across the Europe.

We expect further clarity from the Latvian government regarding specific details around VAT reductions.

On 25 April 2022, Lithuania approved a draft amendment to reduce VAT rates on specific supplies, further to the Russian-Ukraine conflict.

We have published extensive updates on the obligation for taxpayers to report cross-border invoices to the Sistema di Intercambio (SdI), which becomes mandatory from 1^st July 2022.

The Draft Law Decree PNRR 2, the National Recovery and Resilience Plan, was approved on 13 April 2022.

This has expanded the scope of the taxpayers now obligated to report their cross-border invoices to the SdI from 1^st July 2022.

Amongst the groups now subject to the e-reporting of cross-border invoices are:

• Taxpayers who adopt the flat rate regime
• Amateur sports associations and third sector entities with a revenue of up to 65,000 Euros