Compliance Services

Digital Reporting requirements (DRR) encompass measures such as mandatory e-invoicing and e-invoicing obligations. EU Member States often instigate these measures to generate tax revenue.

Notably, however, the EU has not implemented a specific EU-wide agenda relation to DRRs, leading to individual countries to actively pursue their own fiscal agendas in relation to DRRs. From a broader perspective, this means there is greater uncertainty in the e-invoicing landscape around a uniform, universal standard.

To address these challenges, with a means to increase the effectiveness of the measures takes by Member States, the European Commission will publish its proposal on the future of DRRs on 16 November 2022 as part of its wider VAT in the Digital Age Initiative.

On 20 October 2022, the Polish government released a test version of the KSeF Taxpayer Application. This test version incorporates elements of the feedback received during the testing period.

The Application includes several functionalities, including:

• Issuing and receiving invoices from KSeF
• Viewing invoices

It is hoped that the updates incorporated to the Taxpayer Application will lead to a more efficient and less cumbersome process for taxpayers.

HM Revenue & Customs in the United Kingdom has published some draft rules relating to reporting rules for digital platforms.

These rules impose the following obligations on digital platforms:

• To collect information relating to income of sellers using their platforms to:
  • Rent out property
  • Provide personal services
  • Sell goods
  • Rent out transport

The final regulations are expected to come into effect on 1^st January 2024.

Due to surging inflation in the country, Germany has extended the VAT reduction on hospitality services to 31 December 2023.

The VAT rate for hospitality services was initially reduced from19% to 7% and was due to expire on 31 December 2022.

We can expect other countries to adopt similar fiscal measures as inflation continues to have a significant impact on the tax measures countries deploy.

The new law 4972/2022 introduces some detailed tax measures regarding penalties for non-transmission of retail sales documents.

In addition, it has also introduced provided some additional provisions extending the scope of B2G e-invoicing, which means that the B2G now also apply to e-invoices issued for:

• contracts conducted in the sectors of defense and security,
• public contracts and contracts for projects, preparation of studies and the provision of technical and other related scientific services, supplies and general services,
• concession contracts for projects and services, as well as rules for electronic invoices issued for each category of expenditure of the contracting authorities or contracting bodies.

The Dutch government has stated that from 1st January 2023, it will no longer support SI-UBL 1.2.

SI-UBL 1.2 was announced as an optional format on 1^st July 2022.

From 1^st January 2023, entities sending documents to the Dutch central government can use the following standards:

• NL-CIUS
• PEPPOL BIS.

The identifier OIN:0190 must be used when transitioning to these new standards.

Governments often use budgets as a platform to showcase their fiscal policies for the coming year, and Belgium has signalled its intent to refine its tax measures in the coming year.

Proposals in their budget include:

• Permanent 6% reduction for gas and electricity
• Increasing VAT on ‘unhealthy’ products and conversely reducing VAT on healthier products

Once again, countries are targeting specific community agendas, by adapting tax measures with a focus on advancing the health of individuals.

Belgium is a compliant territory for Tungsten Network and will accommodate any new VAT rates as part of our solution.

The Irish budget was published on 27 September 2022 and has incorporated a range of VAT-related initiatives. These include:

• Zero-rating of VAT on paper and digital newspapers and periodicals
• Extension of 9% VAT rate on gas and electricity to 28 February 2023 (this was initially due to expire on 31 October 2022)
• Zero-rating for range of medical supplies.

These measures will take effect from 1^st January 2023.

Governments often endeavour to facilitate the process of validating fiscal-related information.

To this effect, the Spanish tax authorities have included a tool which allows taxpayers to validate Spanish VAT numbers of companies operating intra-EU transactions.

The link can be accessed here:

Consultation Spanish intra-community VAT operators (agenciatributaria.gob.es)

Tungsten Network previously communicated on the Crea y Crece Law which introduced mandatory B2B e-invoicing in Spain.

We can now confirm that the law has now officially published in the Boletín Oficial del Estado (the Spanish gazette).

We are still awaiting further technical details of the mandate, which are currently at draft stage.