Compliance Services

From 1st January 2023, Saudi Arabia will require that Business-to-Business (B2B) and Business-to-Government (B2G) transactions be cleared with the Saudi government (ZATCA) before these can be sent to the buyer.

Tungsten Network is committed to supporting the upcoming e-invoicing mandate in Saudi Arabia and has produced this FAQ that provides insightful information on the requirements and how they would impact your invoice processing. It also presents how Tungsten’s services can assist you in ensuring a seamless transition.

Over the past 2 years, we have seen many countries reduce VAT rates in the tourism sector. As we transition globally to a post-covid era, many countries are continuing to deploy such reduced rates.

Uruguay will continue deploying the reduced rate of 9% for certain tourist activities from 30 April 2022 to 30 September 2022, further to Decree No. 140/022.

A Peruvian draft resolution has made changes to the guías de remisión electronica (GRE). The draft resolution should further regulate the issuance of the e- transport document.

Regarding a high-level overview of the changes:

• The GRE can no longer be issued from SEE-OSE (Sistema de Emisión Operador de Servicios Electrónicos), but should exclusively be issued through the taxpayer’s invoice issuance system (SEE del contribuyente) or the Sunat Portal (SEE-SOL).
• A QR code can be used electronically or on paper as one of the support forms for the transport of goods.
• A new e-transport document has been introduced (the guía de remisión por evento), which has to be issued through the Sunat Portal.

Taxpayers can voluntarily start using the QR code as the support for transportation from 13 July 2022.

Further to Emergency Decree 112-2021, the Peruvian government will postpone the deadline of 4 days concerning the remittance of an e-invoice and fee voucher until 30 June 2022.

Previous regulations had the postponement set to 2 days.

The Decree effectively means that Peruvian taxpayers have an additional 2 days to submit their e-invoice and debit and credit notes until 30 June 2022. After this deadline, the old deadline of a 2-day postponement applies.

Tungsten Network has steadily been following the progress of e-invoicing in Latin America. In November 2021, we communicated around the first wave of taxpayers who were obligated to comply with the mandate.

The phased implementation of e-invoicing has been progressing swiftly since then- the second wave of taxpayers were obligated to comply in April 2022. Bolivia’s National Tax Service (SIN) published Resolution N 102200000010, which identifies the additional group of taxpayers who will be required to comply with the mandate from this date.

The third group of taxpayers, comprising of 3,897 taxpayers who are listed in the annex of the Resolution, is due to comply from 1^st October 2022 and all indications suggest that the roll-out of the Bolivian e-invoicing mandate is on schedule.

Tungsten Network has closely been monitoring timeframes around the inception of the mandatory usage of CFDI 4.0 and associated documents in Mexico. Mandatory usage of the CFDI 4.0 and associated documents has been postponed several times.

Once again, mandatory usage of these documents has been delayed. The Mexican Tax Authorities, Servicio de Administracion Tributaria (SAT) have confirmed via a press release that the mandatory usage of the CFDI 4.0 has been extended to 1^st January 2023.

This means that taxpayers can invoice using CFDI 3.3 or 4.0 until 31^st December 2022. Note that Tungsten network is ready to process both CFDI 3.3 and 4.0 invoices as well as both versions of the payment receipt.

The press release published by the SAT can be found here.

The Mexican government has imposed some further requirements regarding the mandatory tax data required on the CFDI 4.0.

In addition to the introduction of the CFDI 4.0, which now becomes mandatory as of 1^st January 2023 (see update above), the following tax data of the CFDI’s recipient will also be mandatory. This data must also be updated and matched with the information on the Mexican Tax Authorities’ database:

• Mexican tax Id (RFC)
• Legal name
• Tax regime
• Zip code

Consequently, businesses will need to collect the form ‘Constancia de Situacion Fiscal’ (proof of tax situation) from the CFDI recipients.

There are several Mexican Tax Authority application forms from which taxpayers can validate this information, including:

• https://www.sat.gob.mx/aplicacion/login/53027/genera-tu-constancia-de-situacion-fiscal
• https://www.sat.gob.mx/aplicacion/login/28889/obten-tu-cedula-de-identificacion-fiscal
• https://www.sat.gob.mx/aplicacion/operacion/37819/consulta-publica-de-la-opinion-del-cumplimiento
• https://portalsat.plataforma.sat.gob.mx/RecuperacionDeCertificados/faces/consultaCertificados.xhtml

Tungsten Network is analysing the requirements for the new mandatory tax data in the CFDI 4.0 and is working on a solution to ensure these are integrated into our service offering to our customers.

The Group of the Future of VAT has discussed the “Working Paper on E-invoicing and the need for EU standards and interoperability” published by the European Commission. The study carried out on the Digital Reporting Requirements (DRR) part of the VAT in the Digital Age concludes that the policy options providing the most significant advantages are the partial and total harmonisation of DRRs across the EU.

More details around this can be found here.

Slovakia is involved in a draft consultation for the implementation of EU legislation on the VAT Act, with reference to Draft Bill No. 309/2022. This is due to come into effect on 1^st January 2023.

This as a recurring trend across Europe, where countries adopt EU legislation into their own Directives. This adoption offers advantages- offering greater standardisation and consistency with the EU VAT principles and regulations and aligning policies with other EU countries which have enacted similar legislation into their own domestic laws.

The public consultation covers the following:

• Change the VAT registration threshold to EUR 49,790.
• Regulate processes for VAT registration exemptions and cancellations
• Exempt VAT for EU-purchased or imported goods and services if made accessible free of charge
• Revise the VAT deduction requirement regulations for non-payment of VAT
• VAT requirements for refund
• Payment service providers’ recordkeeping duties for cross-border payments.

Feedback for the consultation is requested by 20 June 2022.

Inflation is rising sharply across Europe and governments are responding accordingly with a variety of fiscal measures.

Further to this, the Cypriot government has extended the reduction in VAT on domestic energy, from 17% to 9%, until 31 August 2022.

This was initially expected to end at the end of June 2022.