Which Countries Have E-Invoicing Mandates Coming In 2023 And Beyond

Electronic invoicing regulations are becoming commonplace in the EU and worldwide to standardize procurement. It’s no surprise that France, Poland, Spain, and Ukraine plan to implement their regulations in 2023 and beyond.

With rapid advancements in technology, governments recognize the importance of digitization, including mandating e-invoicing systems. After all, countries like Italy have already showcased that an e-invoice system can make businesses more efficient, reduce tax evasions, and optimize customer billing experience.

In this post, you’ll learn more about electronic invoices and the countries planning to implement this system in the coming years. Read on.

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1.   France

With a positive response from the B2G e-invoicing system, the French government has now decided to extend the framework for other transactions in the future.

First established in 2010, the French government has continuously pushed for an e-invoicing system in the past few years. The government’s main target through this initiative is to work against VAT evasion and make transaction processes more effective.

Like other countries, the French government first mandated an e-invoice for all business-to-government (B2G) transactions. This meant that from 2020, any B2G sales have to be conducted through an e-invoice. At the heart of this system is Chorus Pro, a public platform that provides clearances to e-invoices.

The French government aims to establish a framework to introduce e-invoicing for business-to-business (B2B). As of yet, the exact specifications of the framework are still under works.

However, according to the official ordinance no. 2021-1190 of 15 September 2021, the reform will include the following:

  • The system of e-invoices will be liable to all the companies, subject to VAT, from 1 July 2024.
  • The issuance of the e-invoices is all subject to the company’s size. The implementation date will be 1st July 2024 for enterprises, 1 January 2025 for mid-sized companies, and 1 January 2026 for small-scale and micro ventures.
  • E-reporting will be mandatory even for transactions not associated with e-invoicing, including transactions with an individual not liable for VAT and cross-border sales with exempted entities.

Companies will choose to either work on Chorus Pro which already handles all the e-invoicing matters for B2G transactions or a state-certified e-invoicing solution like Storecove. The choice will depend upon the dynamics of the company.



2.   Poland

Poland has recently decided to follow in the footsteps of Italy and mandate e-invoicing and e-reporting for all kinds of transactions. The framework is set to be mandated from 1 January 2023.

As part of its digitization process, Poland launched a platform called Platformy Elektronicznego Fakturowania” or simply PEF, on 1 April 2019. The platform was established to facilitate transactions through e-invoices between public entities and private companies.

All public entities have to register and receive their invoices through this platform. In July 2020, Poland introduced further reforms when it replaced its traditional VAT system with a Standard Audit File for Tax (SAF-T). All the taxpayers have to submit SAF-T every month to a Polish Tax Authority.

The government in Poland has announced that all e-invoices from 1 January 2023 will have to be issued for approval through the national e-invoicing system called “KSeF.” The KSeF system will be implemented from 1 January 2022, offering invoicing features voluntarily for one complete year. However, from 2023, the use of KSeF will become mandatory for all.

Considering these changes, all businesses in Poland will now have to use e-invoicing solutions for their transactions. Businesses will have to think of ways to handle and receive e-invoices.

One way is to handle everything in-house, especially if you own a large-scale business. Alternatively, you can outsource it to a service provider.



3.   Spain

According to a recent law in Spain, electronic invoices will now be mandatory for B2B transactions. The law aims to promote entrepreneurship, innovation, and investment.

Since 2015, B2G invoicing has been mandatory in the country. The Ministry of Economic Affairs and Digital Transformation is constructing a draft law to expand the mandate to other forms of transactions.

All the electronic invoices and their accounting records have to be received through the national platform called FACe. With the expected changes in the legal framework, all the electronic invoices associated with companies, freelancers, and their commercial relationships will have to be recorded through this platform.

The main rules of this law state:

  • Both companies and freelancers will have to provide access to all the necessary programs by which their recipients can read, download, and print the electronic invoices.
  • The invoices should be available electronically to the recipients for at least four years.
  • If the company or freelancer does not provide the option to receive electronic invoices, then an administrative offense will be charged to the party.
  • Electronic invoices should comply with all the invoicing regulations as laid by the Spanish government.

The legislation will also offer a grace period to both companies and freelancers. Those with an annual turnover of less than €8 million have three years from when the law is published in the Official State Gazette (BOE) to transition. On the other hand, large enterprises with more than €8 million in annual turnover will have one year to transition.

The draft law is currently under public consultation. But the government is making continuous efforts to make e-invoices mandatory for all kinds of transactions. The government is also looking forward to establishing the technical requirements, standardization, security, and control measures associated with e-invoices.

As part of its initiative, the Spanish government has also started the Digital Toolkit Program, through which it is helping companies financially to adapt to a system of electronic invoices.



4.   Ukraine

Ukraine is also moving towards an electronic invoicing system to improve business processes in the country. As its first step, large taxpayers will have to implement SAF-T on request from 1 January 2023.

SAF-T is a standardized structure file that consists of all accounting data like the condition of liabilities, equity, and assets, together with the company’s business status and financial information, in an electronic form.

The SAF-T in Ukraine has the following sections:

  • General information regarding the taxpayer
  • The directories of the taxpayer
  • All the accounting records
  • Information regarding any documentation for accounting records
  • Transferred or received funds
  • Actual amounts of the tangible assets of the business
  • An overview of the business operations, involving both the tangible assets as well as intangible assets
  • Information regarding accounting statements
  • Tax differences

All large enterprises in the country will be required to submit the SAF-T US within two working days of receiving the request. They are also expected to have the proper software for creating the file. This initiative is the first of its kind to move towards electronic invoicing.

In the coming years, Ukraine can expect to have a proper legal framework, making e-invoicing mandatory like other countries in Europe.



Conclusion

Countries across Europe are now making e-invoicing mandatory for all kinds of transactions. The framework promises more innovation, modernization, and investment, as companies will make their procurement processes more efficient.

If you own a company, it’s high time to start thinking about incorporating an e-invoicing system into your operations. As a government-approved invoicing platform, Storecove can support your operations and help you adhere to all the e-invoicing regulations. Explore Storecove’s services and bring your business closer to digitization.


More information about e-invoicing mandates coming?

Call us on: +31 (0) 20 261 17 91 or send an e-mail to: helpdesk@storecove.nl


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