Legal Regulation Changes

Singapore’s Inland Revenue Authority (IRAS) announced plans to allow broader use of the country’s new InvoiceNow system.

Germany is currently undergoing a significant change towards mandatory electronic invoice exchange between companies. With the approval of the Growth Opportunities Act in March 2024, the introduction of the e-invoicing requirement has also been decided.

The adoption of electronic invoicing plays a big role in global digitization initiatives and in combating the VAT gap and tax fraud. How are EU countries approaching these changes in tax legislation?

The electronic invoicing mandate in Romania was officially implemented on January 1, 2024, and now all B2B invoices have to be processed through the RO e-Factura platform.

Today’s technological advancements necessitate digitization of more and more areas of our lives. The adoption of e-invoicing is one of the big transformations that is happening in multiple countries all over the world.

The long-awaited Decree No. 2024-266 includes provisions regulating a transitional period before the e-invoicing mandate introduction as well as laws pertaining to partner dematerialization platforms (PDP) registration.

Let’s explore the timeline and critical aspects of Romania's e-invoicing journey, especially the grace period and the start of the e-invoicing obligation.

Israeli Revenue Service’s (IRS) ambitious plans to launch a B2B e-invoicing system are facing a delay once again. This time, the initial phase of the invoicing mandate was delayed by a month, that is until May 5th 2024.

The Bundesrat has approved the Growth Opportunities Act (Wachstumschancengesetz) by a clear majority.

The Ministry of Finance (MoF) organized a series of meetings to discuss issues related to the mandatory use of the National e-Invoicing System (KSeF). The main objective was to gather feedback from various stakeholders to ensure a smooth implementation.

The Bundestag adopted the recommended resolution for the Growth Opportunities Act (“Wachstumschancegesetz”) on February 23, 2024, which will introduce significant changes in the area of electronic invoicing. However, the Bundesrat must approve the law to enter into force finally. The next meeting is scheduled for March 22, 2024.

On February 2nd, 2024, the European Commission published a written paper summarizing a report on the effects of Directive 2014/55/EU on electronic invoicing in public procurement and its uptake. 

On February 20th, 2024, the Belgian legislation mandating B2B e-invoicing was officially published in a public gazette. This is a final step to confirming the mandate’s January 1st, 2026, introduction deadline.

After teasing the possible introduction of a decentralized electronic invoicing system earlier in 2023, the UAE’s tax authorities announced further details of a proposed solution.

On February 9th, the Polish Ministry of Finance released the schedule for an upcoming series of public consultations addressing the postponed implementation of the B2B National e-Invoice System (Krajowy System e-Faktur, KSeF)

On February 9th, Malaysia’s Inland Revenue Board, the country’s tax authority responsible for introducing the electronic invoicing system.

The Inland Revenue Board of Malaysia (LHDNM) plans to introduce mandatory electronic invoicing gradually.

In January, the French Tax Administration published a list of entities applying for certification of their electronic invoicing solutions as a Partner Dematerialization Platform.

The long-awaited draft document with proposed mandatory B2B e-Invoicing regulations was submitted to the Belgian parliament on January 5th, 2024. Last year’s political turmoil threatened the invoicing project as it was part of a contested budgetary bill.

During a press briefing on January 19th 2024 Poland’s Minister of Finance announced a postponement of the National e-Invoice System (Krajowy System e-Faktur, KSeF) obligation introduction. Initially, a nationwide mandate was set to come into force on July 1st 2024.

This article marks the second installment of our two-part series providing an in-depth exploration of the current landscape of e-invoicing adoption in the U.S.

Unlike several nations worldwide embracing the efficiency and transparency of electronic invoicing, the U.S. remains without a comprehensive requirement for businesses engaged in B2B transactions.

In the heart of Europe, Germany is undergoing a significant transition, shifting away from paper-based invoices to embrace a mandatory electronic invoicing framework tailored for B2B transactions.

Malaysia stands out as one of the countries undergoing a significant shift towards mandatory electronic invoicing.

Spanish authorities initially set out to roll out a B2B electronic invoicing obligation as early as January 2025. However, with the recent events around forming a new government, the relevant legislation has yet to be officially introduced.

Israel's concrete plans for implementing an e-invoicing system position the country within a rapidly expanding group of countries, modernizing their tax compliance through next-generation solutions.

The Billentis global market report underscores the significance of this shift, projecting the APAC region to achieve the highest annual e-invoice volume growth rates compared to Latin America and Europe until 2025.

Clarifying a new schedule for the system has been the subject of an intense parliamentary debate, as it is attached to 2024’s budget act.

The Ministry of Finance initiated a first round of talks regarding two executive decrees aimed at regulating the use of the KSeF e-invoicing system from day one of its nationwide mandatory use on July 1st, 2024. 

Portuguese Tax and Customs Authority decided to postpone introducing a requirement for the invoices in PDF format to feature the Qualified Electronic Signature

In a recent vote, Bundestag approved a plan to extend a schedule for introducing a nationwide e-invoice issuing mandate. The German parliament’s lower house lengthened the previously adopted plan by a whole year.

After the initial governmental amendment to the 2024 budget bill postponing France’s ambitious invoicing system kick-off to 2026, the Senate is poised to propose its updated timeline along with the financial committee’s advice. 

A push to digitalize the Chinese invoicing ecosystem entered an active phase in 2021 when the first provinces initiated the e-fapiao pilot.

After announcing the preliminary e-invoicing schedule earlier this year, the IRBM, Malaysia’s internal revenue authority, updated project documentation with more definitive introduction dates.

Due to the inability to agree on crucial ViDA policy factors and the current Spanish EU presidency ending, prospects for successfully negotiating ViDA’s final details in the nearest months are waning.

The Balkan country is set to become another state embracing B2B electronic invoicing in its transaction clearance flavor. This follows a 2019 introduction of B2G e-invoicing obligation.

The President of Romania signed on Thursday, 26 October 2023, the Decree for the promulgation of the Law on some fiscal budgetary measures to ensure the long-term financial sustainability of Romania.

Unsurprisingly, proposed e-invoicing regulations sparked an intense debate among public and private entities in Germany. Current discussions are believed to be key for shaping the final provisions of the reform.

On October 17, France’s lower house of parliament, the Assemblée Nationale, introduced an amendment to the upcoming budgetary bill instituting a new realistic timeline for bringing the e-invoicing and e-reporting system into force

The introduction of a comprehensive reform of VAT in the Digital Age in all EU countries from 2024 is unlikely.

In 2024, KSeF is planned to become mandatory for taxpayers performing activities subjected to the invoicing requirement by Polish VAT regulations.

Newly introduced 2024 budget bill includes provisions modifying Malaysia’s e-invoicing mandate introduction schedule.

On the 2nd of October, the German Ministry of Finance responded to a letter by a broad group of industry experts voicing concern about strict plans regarding proposed obligatory formats for a prospective e-invoicing system.

On 28th of September a group of expert industry leaders under auspices of the german Institute for Digitalization in Tax Law (IDSt) published a joint letter opposing introducing a federal e-invoicing mandate in its currently planned form.

The Malaysian tax authority (Inland Revenue Board of Malaysia, IRBM) published an updated and expanded version 2.0 of documentation for the prospective e-invoicing and e-reporting system on September 29th.

After a general announcement of a delay in introduction of an ambitious French e-invoicing and e-reporting system in July 2023, the French Direction Générale des Finances Publiques announced in a meeting with industry representatives on a proposed new timeline potentially extending into 2027.

Belgian Council of Ministers proposed a new timeline for introduction of a broad e-invoicing mandate after previous propositions coupled with 2024 budget bill failed in Belgian parliament earlier this year.

On the morning of 19 September, the Romanian Ministry of Finance published the long-awaited draft legislation aimed at regulating the introduction of an e-invoicing mandate on 1 January 2024. If implemented, it will fully utilize the earlier derogation decision issued by the EU Commission.

Israel is steadfast in its mission to introduce an e-invoicing and reporting mandate in 2024. The nation’s clear strategy for implementing this system places it among the rapidly growing group of countries modernizing their tax compliance through innovative solutions.

The new eVAT M2M platform is expected to enable the submission of VAT returns in electronic (XML) form, using machine-to-machine communication.