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We may be over halfway through 2024, but a series of major VAT and e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. changes are still to come before the year is out.
Take a look below at our selection of 10 of the most important updates that we advise all global tax teams to keep track of as we head towards December.
1st August 2024
Malaysia: Phased introduction of MyInvois to begin
The introduction of mandatory MyInvois B2B e-invoicing will begin in Malaysia on 1st August.
However, it will not initially include small businesses with annual turnover lower than MYR 150,000. These companies will be able to use MyInvois on a voluntary basis.
MyInvois will be implemented in a phased approach with pre-clearance for the regime required on the following dates:
1st August 2024: Businesses that are registered for Malaysian VAT and have annual revenue of more than MYR 100 million.
1st January 2025: Companies with annual turnover between MYR 25 million and MYR 100 million.
1st July 2025: All other businesses that pay tax.
1st August 2024
Romania: Pre-filled VAT invoices
From 1st August, Romanian taxpayers must complete a pre-filled VAT return; containing a full list of their monthly VAT transactions. Businesses will be required to reconcile this document to their regular VAT return.
For a period of six months from launch, no penalties will be issued to taxpayers as they become accustomed to the new reporting structure. What’s more, companies remitting VAT will be granted 20 days (instead of the usual five days) to justify any discrepancies between regular returns and the new eVAT reports.
Companies trading in Romania will be able to rely upon data from a variety of sources to populate their eVAT returns, including SAF-TSAF-T (Standard Audit File for Tax) is a file type based on the XML standard. It is created in a standard readable format from data exports taken from accounting records. SAF-T is used internationally to ensure the fast and secure digital transfer of tax information. It is known for its high level of security, ability to simplify the collection of tax data and simple readability due to its standardised format., e-invoicing, the e-transport system, e-cash registers, RO e-seal and customs data.
1st August 2024
EU: Member states free to mandate e-invoicing
From August, EU member states will be able to introduce their own e-invoicing mandates without prior approval from the European Commission.
The EU’s VAT in the Digital Age plan includes mechanisms to amend Article 219 and delete Article 232 of its VAT Directive. Once approved, countries within the bloc will be free to take their own paths on e-invoicing, helping to facilitate its rapid adoption.
1st September 2024
Finland: Standard rate set to rise
The standard rate of VAT in Finland is set to rise by 1.5% to 25.5% on 1st September, subject to parliamentary approval.
Once the increase has been introduced, it will make Finland home to the second highest standard rate in the EU, behind only Hungary.
What’s more, Finland’s reduced rates are set to be increased from 1st January 2025. This will see the current 10% rate on items such as books, hotels and public transport rise to 14%.
1st October 2024
Spain: Zero rate set to return to 4%
The temporary zero-rating of a range of basic foodstuffs will come to an end on 1st October.
Products including bread, eggs, cheeses, flour, milk, fruits, vegetables, cereals and legumes were zero-rated in a move to tackle rising inflation. But with inflation down to 3.8% from its peak at 10.8%, the measure is due to be lifted.
It means taxpayers must apply a higher rate to these items in a phased approach as follows:
1st October 2024: Rate rises to 2%
1st January 2025: Rate rises to 4%
1st October 2024
Cyprus: VAT cut on essentials due to end
The current reduction in VAT on a range of essential goods will finally come to an end on 30th September.
The Cypriot Tax Department recently extended the temporary reduction in 5% VAT to 0% on items such as bread, milk, meat, vegetables, sugar, eggs and baby food for a third time.
But from 1st October, VAT on these products will return to 5%.
The rate cut was originally implemented to help consumers by lowering costs on essential goods during a period of high inflation. However, with inflation now standing at just 1.5% in the country, the cut is no longer required.
1st October 2024
Thailand: Lower standard rate set to end: VAT back to 10%
The standard rate of VAT in Thailand is set to return to 10% on 1st October, following a period of it being reduced.
The government has had the 7% rate in place for some time and there are longstanding plans to raise it, but several extensions have meant this has not yet taken place. However, the last 12-month extension announced in 2023 is due to expire this autumn.
1st November 2024
Ireland: VAT on energy to return to 13.5%
Ireland’s temporary VAT rate reduction for domestic gas and electricity is due to come to an end on 31st October.
Having been cut from 13.5% to 9% for a third time in October 2023, the latest 12-month extension is set to expire.
It is estimated that consumers in Ireland have saved an additional €90 billion on electricity and €62 billion on gas during the last year as a result of the VAT cut.
1st December 2024
Botswana: Rollout of mandatory e-invoicing to begin
A mandatory e-invoicing regime, known as ‘e-billing’, will be implemented on 1st December.
The e-billing scheme will include requirements for online tax filing, electronic payments and online customs declarations.
It is believed that the full implementation of the system will take three years, with the early regulations coming into effect later in 2024.
1st December 2024
Saudi Arabia: Penultimate wave of e-invoicing rollout
The 12th of 13 confirmed waves of the Saudi e-invoicing rollout will take effect on 1st December.
On this date, taxpayers with annual income between SAR 10 million and SAR 15 million will be obligated to comply with the national FATOORAH regime. The e-invoicing scheme is currently in Phase 2, known as the integration stage.
