Implemented
- Angola is the only country outside Europe to have adopted the SAF-T requirements for electronic data transmission relating to VAT reporting and accounting elements. Since 2019, the Adminitraçao Geral Tributária – AGT, has collected information from selected taxpayers through the OECD system.
- The e-Invoice is called facture normalisée and was introduced on a mandatory basis in 2020 for all businesses subject to VAT. Companies must send e-Invoices to the system Système dématérialisé des Machines Électroniques Certifiées de Facturation (e-MECeF). For them, the measure was taken by the Direction Générale des Impôts – DGI as part of the modernization of the tax system.
- The e-Invoice is part of the set of reforms aimed at the control and traceability of trade by the tax authority of the Office Burundais des Recettes – OBR. In fact, the law requires that, as of 2022, companies subject to VAT and foreign companies with a local tax representative declare invoicing data related to transactions and payments in real time. However, e-Tax compliance is being limited by the state of digitalization of companies.
- As of January 2022, VAT reports will be submitted electronically to the tax authorities via email.
Côte d’Ivoire
- In 2019, the Direction Générale des Impôts – DGI, Côte d’Ivoire’s tax authority, within the Plan National de Développement – PND, National Development Plan, implemented a new certified e-Invoicing system, which imposes the real-time sending of electronic and stamped invoices to the DGI. For the time being, the obligation only affects technology companies offering digital goods or services.
- Ghana began from the 1st of October 2022 the rollout of their certified electronic invoicing system. The implementation is taking place in waves, starting with the 600 largest taxpayers that generate more than 90 per cent of VAT revenue. Wave two will be the medium-sized taxpayers, which will start in 2023. And by 2024 all businesses need to be linked to the Government Portal issuing certified “e-VAT invoices”.
- Since 2005, several initiatives have been undertaken by the Kenyan Treasury, Kenya Revenue Authority – KRA, to digitize the government’s administrative processes. In fact, taxpayers have at their disposal several digital platforms to carry out transactions telematically. However, the definitive step has been taken in 2022 with the massification of e-Invoicing. As of November 30th, all businesses subject to VAT must report their e-Invoices to the government through the Tax Invoice Management System – TIMS.
- The government plans to introduce electronic B2B2G and B2C invoicing. Right now, we are waiting for the Revenue Services Lesotho – RSL tax authority to define the model.
- Niger has opted for an e-Invoicing system very similar to that of neighboring Benin. The invoicing system is called Le Système Électronique Certifié de Facturation (SECeF), and the e-Invoice is also called a certified invoice. Its use has been mandatory for all companies since 2021. With its implementation, the Direction Générale des Impôts – DGI aims to facilitate increased tax collection, improve tax compliance, facilitate companies’ management, and enhance their competitiveness.
Nigeria
- Nigeria is in the process of developing its tax and accounting reform project, “Integrated Tax Administration System – ITAS,” with which the tax authority, Federal Inland Revenue, wants to automate tax management in the country. It is an e-VAT Compliance system through which all taxpayers must report their transactions electronically. In addition to e-Reporting, companies must, as of February 2022, send all import and export invoices electronically to the Central Bank of Nigeria (CBN).
Senegal
- Senegal is one of the first African countries to equate the validity of e-Invoices with paper invoices. It did so in 2008 through the Law – loi n° 2008-08. For the time being, its use remains voluntary. However, at the e-VAT level, the Direction générale des Impôts obliges all taxpayers to report their financial activity through the government platform “Sen-etafi” as of 2021.
- Although e-Invoicing is voluntary, its use is widespread in the country. In fact, it is one of the pioneer African countries to introduce its use. To exchange e-Invoices in an integrated manner through Electronic Data Interchange, prior approval from the Treasury of South Africa, The South African Revenue Service – SARS, is required. In addition, SARS has defined what the e-Invoice should look like and the conditions for its e-Archiving.
- Tanzania is another African country that has opted for a VAT compliance system based on Electronic VAT Reporting through fiscal devices, Virtual Fiscal Device (VFD). Taxpayers must declare their e-Invoices to the tax authorities, Tanzanian Revenue Authority – TRA, for B2B and B2C in real time.
The Democratic Republic of the Congo
- The Directorate General of Taxes (DGI) of the Democratic Republic of the Congo has recently announced that it will require Electronic VAT Reporting for all taxpayers subject to VAT. Implementation will be gradual, starting with large companies, with prior notice from the government.
- In the case of the Togolese Republic, the e-Invoice was equated to the paper invoice in 2018, and its use is voluntary.
- The Uganda Revenue Authority, URA, has imposed, as of January 2022, e-Invoicing on all taxpayers. The invoicing system, called EFRIS (Electronic Fiscal Receipting and Invoicing System), impacts both the B2B2G and B2C sectors. Companies must send e-Invoices to EFRIS through electronic fiscal devices (EFDs).
- As of January 2022, Zimbabwe requires the declaration of e-invoices through e-Tax devices called Electronic Tax Registers (ETRs).
- ETRs send real-time transaction information from taxpayers to the tax agency ZIMRA
Planned
- B2B
- Botswana’s 2024 budget aims to modernize the Income Tax Act in response to the changing global business environment. Key proposals include reviewing and modernizing tax laws, implementing electronic invoicing for efficient VAT collection, incorporating digital sales into taxation, optimizing e-services for enhanced accessibility, and digitally tracking excisable goods.
- No exact date known yet.
Cape Verde – Implements Self-Invoicing Ordinance
- Cape Verde has introduced a self-invoicing Ordinance to regulate the issuance of invoices by purchasers on behalf of taxable suppliers.
- The ordinance applies to entities with organized accounting obligations, including public entities, organizations, small businesses, and taxpayers classified as microenterprises.
- Invoices must clearly mention the goods seller or service provider and can be processed electronically through digital channels like SMS, email, or electronic mailbox.
- The self-billing regime is applicable only to transactions associated with the acquirer’s main activities.
- Microenterprise taxpayers have the option to choose coverage under the self-billing regime while still maintaining the obligation to issue invoices.
- The ordinance came into effect on 1 January 2024, the day after its publication.
- B2B, B2C, B2G
- The 2024 Budget Statement includes the second phase of its e-invoicing system (e-VAT).
- The first phase, which ended in 2022, applied to large and high-risk taxpayers.
- The second phase will include 600 large and over 2000 small and medium taxpayers and is expected to be completed by December 2024.
- Some key points from the Budget Statement include the requirement for e-VAT invoices as the basis for deductible expenses related to income tax.
Kenya – Extends E-Invoicing Grace Period for Non-VAT Registered Taxpayers Until March 31, 2024
- Kenya Revenue Authority (KRA) announced grace period for non-VAT registered taxpayers to onboard to e-invoicing platform until March 31, 2024
- No penalties will be imposed on businesses during grace period for not issuing electronic invoices
- E-invoicing mandate in Kenya requires invoices to be sent to KRA’s platform in regulated format
- All businesses, including those not registered for VAT, required to use electronic Tax Invoice Management System (eTIMS) for e-invoicing as of September 1, 2023
- Starting January 1, 2024, business expenses not documented with electronic tax invoices are ineligible for tax deductions.
Malawi paves the way for e-invoicing
- B2B, B2C
- Malawi will abolish the use of Electronic Fiscal Devices (EFDs) and move towards an e-invoicing system.
- On 23 February 2024, the Finance Minister of Malawi, Chithyola Banda, announced these changes during the 2024/25 Budget Plan presentation.
- The new system will lead to a more effective and accurate collection of VAT and will reduce compliance costs.
- Further details will be announced by the Malawi Revenue Authority.
- No exact date known yet
Mauritius Implements Mandatory E-Invoicing for Large Taxpayers by May 2024
- B2B, B2C
- The Mauritius Revenue Authority (MRA) is implementing mandatory e-invoicing in phases.
- Large taxpayers with a turnover of RS 100 million must comply by May 15, 2024.
- The rollout started in 2023, with electronic billing systems already in place by June 1, 2023.
- Large taxpayers are expected to issue invoices through the MRA’s Electronic Billing System from May 15, 2024.
- Other taxpayer categories’ timelines will be confirmed later in 2024.
- Generating an EBS e-invoice involves certification with the MRA, creation via accounting systems, transmission to the MIRA system, and customer verification through the MIRA system.
- The new regime uses JSON format via API to MRA and covers sales invoices, credit notes, and debit notes.
- Fines for non-compliance range from MUR 5,000 to 10,000 per month, up to a maximum of MUR 200,000.
- The effective date for e-invoicing is May 15, 2024.
Namibia – Plans Introduction of Government-Controlled VAT E-invoicing Regime
- B2B
- Namibia has unveiled plans to introduce a government-controlled VAT e-invoicing system, according to the recent budget announcement for the 2024/25 fiscal year.
- The Namibia Revenue Authority (NamRA) will oversee the implementation of this electronic invoicing regime.
- While similar systems have been implemented in other countries, Namibia will review these models to develop its own tailored approach.
- The move towards e-invoicing aims to enhance efficiency, transparency, and tax compliance in Namibia’s business landscape.
- Date of implementation is not yet known.
- Nigeria’s government aims to double VAT revenues through the implementation of e-invoicing.
- Mandatory e-invoicing is already in place with the Central Bank for clearing payments.
- The timing for the implementation has not been provided yet by the Fiscal Revenues Committee.
Rwanda’s New E-Invoicing Enforcement Drive to Boost Tax Compliance and Consumer Incentives
- Rwanda’s Government is implementing an E-Invoicing Enforcement Drive
- The goal is to improve value-added tax compliance rates
- Incentives will be offered to consumers who request electronic invoices
Zambia: E-Invoicing Obligation Commences July 1, 2024
- The Zambian Revenue Authority (ZRA) announced that as of July 1, 2024, all VAT registered taxpayers are mandated to issue e-invoices through the Smart Invoice software solution implemented by ZRA.
- The Zambia Revenue Authority requires all businesses subject to VAT to issue e-Invoices using Electronic Fiscal Devices (EFD) in B2B and B2C environments.
Sources
See also
- E-Invoicing/Real Time Reporting – What can you find on VATupdate.com
- See also Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
