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The United Arab Emirates Introduces New E-commerce Related VAT Obligations

The United Arab Emirates (UAE) has introduced new e-commerce reporting and record-keeping obligations for resident taxpayers. These obligations, published in an amendment to the UAE VAT Executive Regulation, change the sourcing rules for e-commerce s

Japan Approves Tax Reform 2023

The Japanese Government approved Tax Reform 2023. The reform introduces transitional measures in the Qualified Invoice System (QIS) and outlines plans to review the rules applicable to platform operators and electronic record retention.

Croatia introduces Fiscalization 2.0 project

Croatia's Ministry of Finance launches Fiscalization 2.0 project to simplify tax returns, increase transparency and implement an e-invoicing platform by Dec. 2024. Read more in our article.

E-Archiving: Challenges and Unexpected Benefits

If you’re a digital business experiencing international growth, keeping paper records of your business transactions in a storage facility is not ideal. In 2023, it’s a bit like using rotary phones in an office...

Ireland Extends Application of Reduced VAT Rate on the Tourism and Hospitality Sector

The applicable VAT rate in the hospitality and tourism sector will remain at 9% until August 31, 2023. As a result, the VAT rate change from 9% to 13.5% is only effective beginning September 1, 2023, instead of from March 1, 2023.

3 Ways to Save Money With TaxTech

We can shout the phrase, “TaxTech can save you money!” until we’re blue in the face, but it doesn’t mean anything without offering details. Here we provide more context on how TaxTech will save your company money...

VIES Is Having Issues (Again), So Here’s What You Can Do About It

This invaluable portal has its limitations. One limitation you’ve no doubt encountered is the multiple times each month when VIES is experiencing ‘downtime’, perhaps due to high usage or maintenance.

Malaysia Will Levy Sales Tax on Low Value Goods Beginning in April 2023

Malaysia will impose sales tax on imported low value goods sold online beginning on April 1, 2023. The implementation of sales tax on low value goods took effect from January 1, 2023, the imposition of sales tax has been delayed until April 1, 2023.

Poland Postpones Mandatory E-invoicing Until July 1 , 2024

The Polish Ministry of Finance has confirmed changes to the National e-Invoice System (Krajowy System e-Faktur; KSeF), taking into consideration the results of public consultations on the Act that introduces e-invoicing as a common billing system.

Greece: myDATA, the Greek e-bookkeeping and tax compliance system

The Greek e-bookkeeping system will be rolled out in November 2021, after being delayed a few times because of the COVID-19 pandemic. Greek businesses will need to issue e-invoices and file tax information online, via the compliance platform myDATA.

Philippines Changes VAT Return Filing Frequency

The Bureau of Internal Revenue (BIR) introduced a VAT return simplification for taxpayers in the Philippines. Beginning January 1st, 2023, liable taxpayers should submit their VAT returns quarterly.

Egypt Publishes Updated Guides on E-invoicing Obligations

These guides are designed to help businesses and individuals understand the process of registering for the e-invoice system, the integration process together with the e-signatures and codes, and frequently asked questions about the system.

Portugal Introduces VAT Changes and Postpones the SAF-T Accounting Files

Portugal introduced changes to its VAT Code in the State Budget for 2023 and postponed the deadline to submit SAF-T Accounting files. Learn more in our article.

ViDA Proposal Now Available In All EU Languages

The proposal for the Council Regulation on Administrative Cooperation (EU 904/2010) is now available in all EU languages, which means it’s time for us to get our feedback engines revving.

France Released an Updated Version of Its E-invoicing Technical Specifications

The French Tax Administration released version 2.2 of its e-invoicing technical specifications on January 31, 2023. Technical specifications aim to provide details on the upcoming French e-invoicing and e-reporting system. 

Highlights From India’s Union Budget FY 2023-2024

The Finance Minister of India presented the Union Budget on February 1, 2023. The main focus of the budget (also referred to as the “Amrit Kaal Budget”) is on widening economic growth, boosting key areas like the start-up ecosystem...

Czech Republic Increases The VAT Registration Threshold

The VAT registration threshold for resident businesses in the Czech Republic has been increased from CZK 1,000,000 (~42,000 EUR) to CZK 2,000,000 (~84,000 EUR) beginning January 1, 2023. 

The Five Most Important TaxTech Trends of 2023

TaxTech is a fast-moving industry that’s dedicated to improving the lives of tax teams everywhere, it’s important to stay up-to-date on all the innovations and trends that will define it for years to come.

The VAT Gap: What the New Report Says and Why It Matters

Value Added Tax (VAT), is an important source of revenue for many countries in the European Union.The European Commission (EC) recently released a report on the 2022 VAT Gap of the EU member states. We dive into the report's details & why it matters.

Luxembourg Reaches the Last Phase of the B2G E-invoicing Roll-Out

Beginning on March 18, 2023, more taxpayers in Luxembourg will be covered by the B2G e-invoicing obligation. According to the law, economic operators must issue and transmit electronic invoices when...

Philippines Proposes the Introduction of VAT Obligations for Foreign Digital Service Providers

The Philippine Government is in the course of enacting Bill 4122, which requires non-resident DSPs to collect and remit VAT on the sale of digital services...

GSTIN Validation in India: Everything you need to know

Tax ID validation is a compliance issue that’s now front-and-center in many countries – especially India. In order to ensure they’re working with a legitimate party, Platform Operators and Marketplaces must validate tax IDs.

Fonoa ranked as one of Sifted’s fastest growing fintechs of 2022

The Netherlands Increases the VAT Registration Threshold and Extends Applicability Until the End of 2024

The Netherlands obtains permission to extend the deadline for applicability of the special measure for the VAT registration threshold exemption for taxable persons whose annual turnover is less than EUR 25,000. 

Top TaxTech Tips for 2023

Insights from Erich Tschopp, Director of Global Indirect Tax at Airbnb, and Rob van der Woude, the former Head of International Tax at Uber (and Fonoa’s Chief Tax Officer).

Bulgaria Introduces Amendments to the VAT Act

The National Assembly of Bulgaria has adopted the Bill to Amend the VAT Law. The amended provisions of the Law extend the applicability of the reduced VAT rate of 9% on different types of goods and services, and the VAT rate of 0% on bread and flour.

KSA announced the businesses affected by the second wave of the integration phase

According to ZATCA’s announcement, the Integration Phase‘s second wave will affect taxpayers whose VATable revenue for 2021 exceeded half a billion SAR (approximately 133 million USD). Learn more.

Norway Extends VAT Liability to All Remotely Delivered Services by Non-Resident Businesses

The Norwegian Parliament has recently passed an amendment to the VAT Act, which will make non-resident businesses providing remotely delivered non-digital services to consumers in Norway liable for VAT.

Portugal Introduces Important Changes to Invoice Reporting Obligations and E-invoicing Beginning in 2023

The Portuguese Secretary of State for Tax Affairs has signed a Government Order that makes significant changes to the format of e-invoices and digital tax reporting responsibilities for taxpayers. 

Five Common Invoicing Mistakes Your Digital Company Is May Be Making

Slovakia Temporarily Reduces VAT Rate on Restaurant and Catering Services

The National Council of Slovak Republic has, on second reading, approved the proposed amendment of the VAT law. The VAT rate for catering and restaurant services will be temporarily reduced.

Switzerland Increases VAT Rates Beginning in 2024

On December 9, 2022, the Swiss Federal Council set a date for the AHV 21 reform to come into effect, which includes a measure to increase the currently applicable VAT rates.

VAT in the Digital Age: Key Takeaways

The ViDA proposal was published today (8 Dec 2022), in three pieces of EU legislation. We summarized the VIDA updates in bullet points. We read it, so you don't have to.

VAT in the Digital Age: What You Need to Know

We summarized the VIDA updates, so you don't have to! The proposal aims to: modernize VAT reporting obligations and facilitate e-invoicing, update the VAT rules for the platform economy, move towards a single VAT.

Finland Temporarily Zero-Rates Passenger Transport Services

The Finnish Government has announced a temporary application of the zero-rate to domestic passenger transport. This transport is currently subject to the 10% reduced rate.

Challenges for Digital Platform Operators as DAC7 Looms – and How to Face Them

Fonoa’s Tax Technology Director Alexander Kobakhidze (AKo) has written our latest piece for Bloomberg Tax on DAC7 - looking at the challenges digital platform operators face as the legislation comes into effect in one month’s time. 

European Union DAC7 Update: December ❄️ 2022

Stay up to date on all things DAC7. A monthly country by country overview of progress and practical solution. Delivered to you in a useful and digestible format.

Saudi Arabia Extends Grace Period for Tax Penalties

The Tax Authority of Saudi Arabia (ZATCA) announced an extended grace period for noncompliance related to e-invoicing and other tax obligations. TimelineThe extended grace period is now effective from December 1, 2022, to May 31, 2023.

Mexico Extends the Delayed Mandatory Date of the New E-invoice Format to All Invoices

Mexico’s Tax Administration Service (SAT) announced that the mandatory start date of CFDI 4.0 will be delayed for every invoice type from January 1, 2023, to April 1, 2023. There are also delays related to the transport document extension (Carta Port

Singapore Set to Increase GST Rate In 2023 and 2024

Through the 2022 Budget Law, the Singapore Ministry of Finance has announced significant changes in relation to the current GST mechanism. The GST rate will be increased over a two year timeframe. The first change will be effective January 1...

Lithuania Introduces Changes to the Applicable VAT Rates for Hospitality, Ebooks, Accommodation and Events

The Lithuanian Parliament approved an amendment to the VAT Act on November 22, 2022, including changes to the application of the 9% reduced VAT rate. The VAT rate for ebooks and electronic non-periodical publications, e.g., textbooks and dictionaries

Ireland Changes VAT Rates for Newspapers, Hospitality, & Tourism

Ireland changes the VAT rates for newspapers, hospitality and tourism. The new VAT rates on newspapers will be applicable as of January 1, 2023. Changes to VAT rates in the hospitality and tourism sector will be effective from March 1, 2023.

United Arab Emirates Extends 14 Day Invoice Issuance Rules for Periodic Supplies, Consecutive Payments, & Credit Notes

Taxpayers in the United Arab Emirates (UAE) will now have 14 days to issue tax invoices relating to periodic supplies and consecutive payments, as well as credit notes. This is a result of an amendment recently made to Federal Decree-Law No. 8 of 201

Luxembourg Temporarily Reduces VAT Rates

Tax News Alert! Luxembourg has published an amendment to the VAT Act, which includes a provision temporarily reducing current VAT rates by 1%. The new VAT rates will be effective between January 1 and December 31, 2023.

Mexico delays mandatory start date of the new e-invoice format CFDI 4.0

Mexico delays implementation of CFDI 4.0 It will now come into effect on April 1st, 2023, not January 1st, 2023 as originally planned. Giving some additional breathing room for businesses and allows them to prepare for the upcoming changes.

What is the most common misperception about the tax profession?

Featured in Bloomberg Tax, our Chief Tax Officer's discusses the most common misperception about the tax profession, and how he is working to change it?

Austria’s reporting obligation for platforms and DAC7: Everything You Need to Know

Everything you need to know about the upcoming data sharing requirements in Austria and how DAC7 may influence the future. Learn about the current laws and possible upcoming changes.

Can you validate VAT numbers in Uganda? Yes, now you can. 

Foreign businesses who charge VAT on Digital Sales in Uganda can finally differentiate between B2B and B2C sales. Instantly validate tax ID numbers from Uganda – and 95+ other countries – with Fonoa Lookup.

Why Validating Tax Numbers Is So Difficult, And How to Make It Easier

“Can’t wait to validate these tax numbers!” As far as we know, that’s not a phrase anyone working on a tax team has ever uttered. Fonoa makes this process effortless.

When working remote turns into a "Colombian VAT Holiday"

One of our Tax Technology experts found themselves working remotely in Colombia on holiday, and it happened to be a Colombian VAT Holiday! Read more about his unique experience.

Uruguay Releases New Electronic Invoice Version CFE 23.2

The Uruguayan tax authority (DGI) has released a new version of its electronic invoice that is in line with the reforms set by Resolution 531/2022. The new version will be mandatory as of November 1, 2022. Learn more.

Closing the VAT Gap—Automating Tax Compliance in a Digital World

Featured in Bloomberg Tax, including our Chief Tax Officer's key tips for tax professionals on how to successfully integrate new technologies into their processes.

Tricky VAT rules on cross-border transportation are back in the spotlight with the rise of the digital economy

‍A wave of legislation has come into force requiring that VAT (or similar taxes) be charged on digital services supplied to local customers from abroad. We have highlighted 6 reasons it is worth looking into.

El Salvador mandates e-invoicing

On August 30, 2022, the Asamblea Legislativa (parliament) approved Decree 487/2022 and reformed the tax code making electronic invoicing or E-invoicing (Documento Tributario Electronico) mandatory. 

European PSPs to Collect Tax Identification Numbers from 1 January 2024

EU Directive 2020/284 introduced new record-keeping and potential reporting obligations on European payment service providers (PSPs) effective 1 January 2024.

DAC7: Reporting Obligations for Online Platforms in the EU

DAC7 Overview. The 7th Directive on Administrative Cooperation is an initiative to improve tax cooperation between EU member states. Find out how it will affect online platforms in the EU.

Suriname introduces VAT system beginning January 1st, 2023, at a rate of 10%

On August 30, 2022, the Surinamese parliament passed legislation to remove the turnover tax and introduce a new VAT system. The 10% VAT rate will come into effect on the 1st of January, 2023.

Chile urges compliance with digital service rules

VAT on digital services came into effect in Chile on June 1, 2020. Under this rule, non-resident suppliers of digital services to final consumers were obliged to register for VAT in Chile and charge VAT on their invoices to customers. 

Tax reforms in Portugal starting January 1st, 2023

The Portuguese parliament enacts the 2022 Budget Law, with many tax reforms starting January 1st, 2023. Among reforms, Portugal shortens deadline to report transactions and expands the scope of entities that are obliged to report transactions.

Supplying digital services abroad? 6 reasons why you can't ignore indirect tax.

‍A wave of legislation has come into force requiring that VAT (or similar taxes) be charged on digital services supplied to local customers from abroad. We have highlighted 6 reasons it is worth looking into.

Australia’s updated B2B e-invoicing using the Peppol framework (2023-2025)

The Australian Department of Treasury has designed a plan to promote the adoption of B2B e-invoicing using the Peppol format. Proposing that by 2025, all companies will need to exchange e-invoices for all B2B transactions.

Fuzzy Matching - mathematical algorithms supporting Tax ID validation

Fuzzy Matching is a brilliant feature in the Fonoa Lookup product that helps you charge taxes more accurately and combat tax fraud in over 80 countries.

Argentina’s Tax Identification Numbers will now be generic & non-binary

Argentina’s tax identification numbers (CUIT) & social security numbers (CUIL) will now be ‘gender neutral. Argentina’s tax authority (the AFIP) has confirmed the implementation of a new tax identification number prefix format for individuals.

All foreign and local companies operating in Serbia obliged to use Serbian e-invoicing system effective 1 January 2023

Serbia mandates all B2B transactions be reported in the e-invoicing system effective 1 January 2023. Fonoa helps companies be compliant with digital reporting and e-invoicing.

Updated Reporting Requirements in the Kingdom of Saudi Arabia

Saudi Arabian Zakat, Tax and Customs Authority (ZATCA) has published final guidelines for Phase Two of the KSA e-invoicing mandate, scheduled to go into effect 1 January 2023.

Psst! You may be gambling with profit margins

Calculating taxes “after the fact” impedes businesses from fine-tuning pricing for competitive purposes, as margins are unknown at the time of checkout.

Official mandatory application of e-invoices in Vietnam

July 1, 2022, it is officially compulsory to apply electronic invoices for businesses operating in Vietnam. Fonoa automates e-invoicing and your other indirect tax (VAT) requirements. Learn more about this change in our article.

New Mandatory RFC Validation Method in Mexico

Fonoa supports the new 2023 rules for RFC number validation in Mexico and includes name and zip code as part of the validation. Find out more in our article.

Mandatory e-invoicing likely to be postponed in Poland

Poland (KSeF) possibly postpones e-invoicing until 2024. Use Fonoa to automate e-invoicing and your other indirect tax (VAT) requirements. Learn more about this change in our article.

e-Invoicing in Italy: Fattura vs Scontrino

From January 1st, 2019, all invoices issued following the sale of goods or provision of services carried out between entities resident or established in Italy must be electronically invoiced. Learn more about e-invoicing in Italy in this article.

Tax IDs and registrations in Canada

GST/HST registration can be validated against the central database in Canada, and Fonoa Lookup supports TIN validation in Canada both at the Federal level, and for QST ID, ie Quebec sales tax registrations. Learn more in this article.

What is sequential invoice numbering

Tax invoices in most countries require unique and sequential invoice numbering. This means that the invoice number structure must be consistent in structure, and sequential, such that there are no gaps between two consecutive unique invoices.

Egypt to mandate eReceipts for B2C transactions from July, 2022

The Egyptian Minister of Finance just announced the launch of the eReceipts system for a trial period starting from April 15, 2022, until July 1, 2022. Check out what are your obligations if you are dealing with end consumers in Egypt.

Summary invoice: What is it?

A summary invoice is a document generated on top of the invoices that need to be issued per individual transaction and serves the purpose of outlining the total amounts due for that client in a given time frame. Learn more in our article.

How to Validate The Tax ID Numbers of Your Customers

Although this can be a difficult process, it is important to ensure you check the business status of your customers and validate their tax ID numbers. Check out why in this article.

Third-party billing‍: What is it and what are its benefits?

Third-party billing is an arrangement that companies take in order to take over the responsibility of issuing invoices in the name and on behalf of the underlying supplier towards their customers. Learn more in our article.

Why Is It Essential To Validate The Tax Number of Your Customers Before A Transaction Takes Place?

The validation of your customer's tax ID must be an indispensable step in your checkout flow, especially if you are dealing with business customers. Check out why.

Why Is VIES Not Always The Best Solution to Verify European VAT Numbers?

VIES is an online tool often used by EU businesses to validate EU VAT numbers of business partners or customers, but due to some limitations, VIES tool is not always reliable.

Egypt: What does B2B e-invoicing look like in Egypt?

Egypt has implemented changes to its tax legislation in order to make e-invoicing mandatory for a number of companies. In this article, we’ll look into e-invoicing for B2B businesses in Egypt.

Zero-rated supplies: definition, types, examples

Zero-rated supplies are important for business taxes, and remote suppliers are particularly concerned. In this article, we’ll discuss what zero-rated supplies are, and what is the difference between tax-exempt and zero-rated supplies. Learn more.

Japan: What is the Qualified Invoice System?

Japan is currently in the process of rolling out a new tax reform and a new invoicing system. It all started on the 1st of October 2019 with a new multiple rate system. Learn more in our article.

VAT for events: what are the most important things to consider?

With many people returning to the office after a prolonged absence, most companies are starting to question whether it would be best to resume in-person meetings and corporate events, and are also looking for ways to tackle VAT on events. Learn more.

AliExpress expects to see a decrease in EU sales after the July 1 VAT reform

Alibaba, the company behind AliExpress, the hugely popular Chinese eCommerce platform which sells to customers from the whole world, expects to see a decline in their EU sales in the next months. Find out more in our article.

The EU VAT reform: invoicing for online marketplaces

The EU VAT reform, in force since July 1, 2021, has a profound impact on the eCommerce industry, including online marketplaces. In this article, we’ll look into the invoicing obligations and VAT liability of online marketplaces.

Poland: The rollout of the KSeF e-invoicing system is in its next phase

Poland has begun the gradual rollout process of its Krajowy System of e-Faktur, or the KSeF e-invoicing system. In this article, we’ll look into the latest developments of the KSeF system and the accompanying legislation necessary for its rollout. 

EU: VAT on the trade of services between EU countries

One of the core principles of the European Union is the free flow of goods and services. In this article, we’ll look into your VAT responsibilities as an EU service provider, as well as into the new OSS scheme designed to streamline tax compliance.

The EU VAT reform: OSS, IOSS and MOSS

Three key terms define the EU VAT reform: OSS, IOSS and MOSS. In this article, we’ll look into what each one of those terms means, what impact it can have on your business, and explain how you can benefit from the scheme that is right for you.

Non-EU B2C sellers: do you need an IOSS intermediary in the EU?

If you’re operating a business that sells goods to EU customers and aren’t located in the EU, you’d need to consider registering for the IOSS (Import One-Stop-Shop) scheme, and appoint an intermediary. Find out more in our article.

Canada: eCommerce businesses are subject to new GST/HST rules

As of July 1, 2021, eCommerce businesses who operate in Canada are subject to new tax rules. The goal of the new regulations is to make competition between Canadian and non-Canadian businesses fairer. Find out more in our article.

VAT registration exemption thresholds in the EU in 2021

In the EU, small businesses have the possibility to not register for VAT, if their annual turnover is under a certain limit. In this article, we’ll look at the different VAT thresholds per country, and see the rationale behind the existence of limits

Cross-border invoicing and reporting in Italy

Italy has introduced mandatory e-invoicing between Italian taxpayers in 2019, but cross-border transactions weren’t in the system’s scope. At the moment, Italy is looking to introduce an expanded CTC for cross-border transactions. Find out more now.

E-invoicing in the Scandinavian countries: Sweden, Norway, Denmark, Finland

Scandinavian countries have been making rapid progress towards electronic invoicing. In this article, we’ll look into the current state of e-invoicing in Sweden, Norway, Denmark and Finland. Find out more in our article.

E-invoicing in Saudi Arabia: timeline, requirements, and technical details

E-invoicing will become mandatory for businesses operating in Saudi Arabia, making the Kingdom the first Middle Eastern country to implement an e-invoicing reform. Find out more in our article.

EU: If you’re selling on Etsy and have EU customers, here’s what’s changed in July 2021

If you’re an Etsy seller and have buyers from the EU, VAT collection now looks different, after the EU VAT reform (effective from July 1, 2021). In this article, we’ll look at the things you need to consider and to do. Learn more.

EU: How the EU VAT reform impacted Amazon pan-EU FBA sellers?

The past year has been very successful for eCommerce businesses, as demand was further fueled by the pandemic. However, the EU VAT reform, which came into effect on July 1, 2021, has a profound impact on eCommerce in the EU. Find out how.

EU: B2B E-Invoicing in the EU

Across the European Union, countries are trying to reduce VAT gaps and increase VAT revenue by modernizing their invoicing and VAT collection processes. In this article, you can learn more about e-invoicing regulations in some European countries.

Dropshipping from China into the EU, IOSS, and the new EU VAT rules

The European Union has introduced a major VAT reform that impacts all eCommerce sellers who ship to EU customers. Let's look at the things that change for you if you have a dropshipping business and are shipping items from China into the EU.

EU: When are online marketplaces liable for VAT on B2C transactions in the EU?

With the EU VAT reform that entered into force as of July 1, 2021, online marketplaces that facilitate B2C sales in the European Union need to deal with a new administrative burden: charging and remitting VAT on some transactions. Learn more.

EU: Do you need to register for the OSS (One-Stop-Shop) system?

The EU VAT reform will profoundly affect VAT declaration and remittance for eCommerce retailers who have customers in the EU. Learn more and prepare your business for all changes that are coming in the upcoming weeks.

EU & UK: New VAT rules for online retailers

Brexit brought many changes to how online retailers in the EU and in the UK need to handle VAT. EU distance selling rules no longer apply in the UK, and shipments between the UK and the EU are now subject to import duties and other fees. Learn more.