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.
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.
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...
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
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
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Greece: myDATA, the Greek e-invoicing and tax compliance system
The Greek e-invoicing 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.
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: 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: 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: 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.
EU: VAT on sales facilitated by online marketplaces
Online marketplaces, such as Amazon, eBay or Cdiscount will be considered as the deemed supplier for some transactions in the EU, and, as a result, will be liable for collecting and remitting VAT on those sales. Find out more in our article.
EU: VAT rules for dropshipping in the EU
B2C dropshipping businesses who sell to EU customers need to adapt to the EU VAT reform that has been introduced on July 1, 2021. Find out more in our article.
Portugal: ATCUD and QR codes on invoices become mandatory from January 2022
Portugal is introducing mandatory ATCUD (document identification number) and QR codes on invoices, starting from January 2022. This is a part of a bigger effort by the Portuguese government to simplify and modernize tax compliance and VAT. Learn more
Poland introduces its e-invoicing system, the KSeF, in October 2021
Starting from October 1, 2021, Polish businesses will be able to use the official e-invoicing system to issue electronic invoices for B2B transactions. Find out more what it is all about in our article.
EU: Imports from China after the VAT Reform on July 1, 2021
The EU VAT Reform scheduled for July 1, 2021 will have a big impact on imports from non-EU countries, such as China. Learn how will new regulations impact international buyers who usually use Aliexpress, Wish, and eBay for online shopping.
EU: The One-Stop-Shop (OSS) Scheme is not Adapted to Fulfillment by Amazon
From July 1, 2021, the new EU VAT reform will affect cross-border trade in the EU (including imports from abroad). VAT legislation in the EU was outdated and not adapted to the realities of online trade, especially at its current scale. Learn more.
UK & EU: The Principle of Use and Enjoyment for VAT
Use and enjoyment for VAТ purposes is a principle that determines where a specific service is used, and where it should be taxed. It is used to prevent tax avoidance and non-taxation, as well to avoid double taxation. Find out more in this article.
EU: EC Sales List (ESL) Obligations for Intra-Community Trade
If you’re operating an EU VAT-registered business and are selling goods and services to other VAT-registered businesses in the EU, you need to submit EC Sales List (ESL) returns on a regular basis (monthly, quarterly, or annually). Find out more.
Digital taxes on online courses: key factors to consider
If you’re an online course creator and sell your courses on Teachable or Udemy, you need to know what digital taxes you need to pay. In this article, we’ll look at consumption taxes on digital products and services, and how they affect you.
EU: IOSS and VAT rules for non-EU businesses who import to the EU
The EU VAT reform scheduled for July 1, 2021, will bring lots of changes to how B2C businesses operate in the EU. This reform will also affect non-EU businesses importing into the EU. Find out more about what is coming as of July 1 in our article.
EU: One-Stop-Shop for E-Commerce Explained: IOSS or OSS?
As already discussed - with the EU VAT reform scheduled for July 1, 2021, e-commerce business owners who have cross-border transactions within the EU or who import goods from outside the EU will be impacted.
EU 2021 VAT Package: VAT on Goods Sold via Online Stores like Amazon, AliExpress and eBay
Starting from July 1, 2021, EU customers will be charged VAT for products they order on online stores and marketplaces (such as Amazon, AliExpress, eBay), regardless of the order’s value. Find out more in our article.
UK & EU: eBay Sellers’ VAT Obligations
In 2021, both the UK and the EU have rolled out important changes to the way VAT on online purchases is handled. These affect eBay sellers who trade with end customers in the EU and UK. Find out how to adapt to new changes in this article.
EU: Amazon FBA & Your VAT Obligations in the EU after July 1, 2021
Many companies sell products on Amazon, but not all of them know how this affects their VAT obligations in the different countries where they sell, and how to remain VAT-compliant. Here is what you need to know.
UK: Taxes on Earnings from Twitch
If you’re earning money on the streaming platform Twitch as an affiliate, a partner, or via donations, you’ll need to pay income taxes. Find out more in our article.
UK: Tax Obligations for Streamers on YouTube and Twitch
If you’re making money from streaming on Twitch or on YouTube, you might need to pay taxes on that income, regardless of whether it’s donations, ad revenue, or affiliate fees. What is all about, find out in our new article.
Turkey: E-invoicing Rules and Regulations
Turkey introduced mandatory e-invoicing for some taxpayers. Starting from July 1, 2020, companies who had generated gross revenue of over 5 million Turkish lira in 2018 and 2019 were required to transition to e-invoicing. Find out more.
Argentina: E-invoicing Rules and Regulations
The mandatory e-invoicing in Argentina went through several waves of adoption, but as of 2019, it is mandatory for all entities in Argentina. Find out more about e-invoicing rules and regulations in Argentina in this article.
Italy: Changes to E-Invoicing Rules for B2B Cross-Border Transactions, Starting from 2022
As the most advanced country in Europe in terms of electronic invoicing, Italy is introducing new e-invoicing rules for B2B cross-border transactions. Find out more about the upcoming changes in this article.
Portugal: Changes to E-invoicing Rules in 2021-2022
Portugal is continuously developing and expanding the mandate of its electronic invoicing system. Some changes are already implemented, and some will be in the upcoming months. Find out more in this article.
Dropshipping In The EU: Your VAT Obligations
Over the past decade, dropshipping is one of the fastest-growing ways to run your online business. But, when it comes to taxes, things might be complex. You can find an overview of your VAT obligations in this article.
B2B E-Invoicing in Poland (KSeF)
Poland will introduce an e-invoicing solution for B2B transactions in October 2021. The new digitalized system is known as KSeF (Krajowy System e-Faktur, or National e-Invoicing System) and its use will be voluntary for businesses for the time being.
One Stop Shop (OSS) and Import OSS Explained
As of July 1, 2021, the EU will introduce its new VAT package for e-commerce, which means that businesses will have to switch to the One Stop Shop (OSS) reporting in the EU. Find out more in this article.
The Digital Levy: The Taxation of the Digital Economy in the EU
The taxation of the digital economy didn’t pass below the radar of governments within the European Union. Find out in our new article which principles and rules you should follow to stay tax-compliant. p.s. we have a solution for you.
Post-Brexit B2C Distance Selling and VAT Regulations in Northern Ireland
As of January 1st, 2021, the UK left European Union. Although Northern Ireland is a part of the UK, under the Northern Ireland Protocol, EU VAT rules will continue to apply after the end of the transition period. Find out more about new tax rules.
What Is A VAT Number, What Is Used For, And How To Check It?
Besides the contact information of companies you are working with, there is always one additional number. What that number represents, and why is it always displayed on invoices and other official documents? Find out answers in our new article.
What Is A Credit Note And When To Issue it?
You've probably heard about credit notes tens or hundreds of times, but what is it actually, when to issue it, and what information a credit note must contain? Find answers to these and many more questions in our new article.
EU Reverse Charge: What Is It And Who Is It For?
If you are selling your products and services to customers in another EU country, you need to follow special VAT rules that differ from the ones if you were selling to customers domestically. EU reverse charge is one of them. Find out more here.
What Is A GST And Which Countries Have It?
GST, or Goods and Services Tax, is a type of indirect tax that is aimed at consumption. Many similar consumption taxes around the world are roughly based on the same principles. In some EU Member States, this tax type is called a VAT. Find out more.
No More Distance Selling Thresholds And 2 Other Big Changes Coming To e-Commerce In July 2021
After significant changes caused by the UK leaving the EU, the European Commission released the "EU VAT package 2021," which will significantly impact e-commerce businesses. Does it mean the end of e-commerce in the EU, as we know? Find out here.
EU VAT Number Formats
All EU member states have a fixed format for their VAT numbers, which includes a two-letter code of the country and a string of digits. You can find a full list of the Member States and their formats of the VAT number in this article.
EU VAT Rates
Besides the standard VAT rate, almost all EU Member States have reduced VAT rates. Find a list of VAT rates applied in the Member States of the European Union in our article.
What does DAC7 Mean for Online Platforms
DAC7, according to many, will cause tectonic changes in the way how global digital platforms operate. In short, under DAC7 online platforms will need to report income earned by sellers in the EU, which means additional compliance responsibilities.
What is VIES?
If you operate in or have customers in the EU, you’ve probably heard about VIES, an online system developed to check the VAT ID of a VAT-registered business in the EU. Find out more about this project of the European Commission in our article.
Checking Your Customers’ Tax ID
If selling digital services, the chances you have customers in every corner of the world are high. To apply the right taxation principles, you should check your customer’s tax ID. That’s very important but very difficult. Find out more in our article
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