E-Invoicing & E-Reporting developments in the news in week 50 & 51/2025

Podcast on Spotify

Follow the latest updates on E-Invoicing and Real Time Reporting on www.vatupdate.com and the LinkedIn pages on E-Invoicing/Real Time Reporting and ViDA.

HIGHLIGHTS OF WEEKS 50 & 51 /2025

E-Invoicing Timeline Confirmed: The Finance Bill 2026 maintains the established timeline for e-invoicing, requiring all VAT-registered businesses in France to be capable of receiving e-invoices by September 1, 2026. Large enterprises and mid-caps must issue e-invoices for B2B transactions from this date, with SMEs and micro-enterprises following by September 1, 2027.
Withdrawal of Grace Period Amendment: The proposed two-year grace period for penalties associated with e-invoicing compliance has been withdrawn, meaning businesses will not benefit from any tolerance for infringements recorded between September 2026 and August 2028. The National Assembly confirmed that the amendment was not adopted, leaving no grace period in the final version of Article 28.
Implications for Businesses: With the grace period eliminated, businesses must prepare for the mandatory issuance and receipt of e-invoices starting in September 2026. Companies should now operate under the expectation that penalties for non-compliance will be enforced from the go-live date, with specific levels of penalties established in Article 28.

Pilot Project Extension: Kazakhstan’s government has extended the Digital VAT pilot project for automated VAT refunds until December 31, 2026, following a joint order from the Ministry of Finance and the Ministry of AI and Digital Development, which updates the rules for payments and electronic invoice handling.
Modernization of VAT Refund Processes: The pilot aims to streamline VAT refunds by utilizing the Digital Tenge system, allowing refunds to be processed within 15 working days without tax audits. Participants must use digital tenge with VAT marking for specific purposes, and payment documents must include the registration number of the relevant e-invoice.
Operational Guidelines and Impact: Payments will be processed through second-tier banks, with strict controls on the use of VAT-marked digital tenge, which cannot be used for other purposes or withdrawn as cash. The new rules, effective from December 21, 2025, apply retroactively from October 7, 2024, to December 31, 2026, influencing the handling of electronic invoices linked to VAT payments.

Increased Exemption Threshold: On December 6, 2025, Malaysia’s Cabinet approved an increase in the e-invoicing exemption threshold from RM500,000 to RM1 million in annual revenue. As a result, businesses with revenue below RM1 million will no longer be required to comply with the MyInvois e-invoicing mandate starting in 2026.
Revised Implementation Timeline: The updated implementation timeline reflects that taxpayers with annual turnover under RM1 million are now exempt from the e-invoicing requirements. The phased rollout for larger taxpayers will continue as planned, with specific compliance dates for different revenue brackets.
Implications for Businesses: Companies with annual revenue below RM1 million are relieved from mandatory e-invoicing requirements but can still choose to adopt e-invoicing voluntarily to align with larger clients. Conversely, businesses with revenue at or above RM1 million must adhere to the phased e-invoicing mandate and ensure compliance with the latest guidelines from the Inland Revenue Board of Malaysia (IRBM).

Preparation for Peppol Authority Status: The Oman Tax Authority (OTA) is in the process of securing necessary government approvals to formally establish itself as a Peppol Authority, a key step in implementing the Peppol 5-corner model.
Framework Development: The establishment of the Peppol Authority is crucial for creating the infrastructure required for electronic invoicing and interoperability in the country, aligning with international standards.
Upcoming Pilot Program: The OTA aims to initiate a pilot program for the Peppol 5-corner model in August 2026, marking a significant advancement in Oman’s digital tax landscape and e-invoicing capabilities.
Oman Tax Authority (OTA) — Updated FAQ on E-Invoicing

Completion of Legislative Framework: The Ministry of Finance and Economy has finalized the legislative framework for mandatory e-invoicing via the National e-Invoicing System (KSeF) in Poland by signing the remaining four executive acts, with key provisions published in the Official Journal.
Exemptions and Technical Details: The act detailing exemptions specifies scenarios where invoices need not be issued via KSeF, including motorway tolls, passenger transport tickets, and certain financial services. Additionally, the act on the use of KSeF outlines authorization methods, QR code requirements, and data access procedures for invoices.
Implementation Timeline: Starting February 1, 2026, all taxpayers, including the largest ones, will be required to issue and receive e-invoices through KSeF. The updated JPK_VAT will reflect these changes, requiring the inclusion of KSeF invoice numbers, thus completing the transition to mandatory e-invoicing in Poland. Taxpayers have a 45-day period to prepare before these requirements take effect.

On 3 December 2025, the Serbian Parliament passed amendments to the VAT Law. The amendments were published in the Official Gazette on 4 December 2025 and took effect on 12 December 2025, with most provisions applying from 1 April 2026.
As part of this reform, the pre-filled (preliminary) VAT return requirement was delayed by one year. It will now apply for:
- The January 2027 tax period for monthly filers
- The January–March 2027 period for quarterly filers

Introduction of E-Invoicing Penalty Regime: Cabinet Decision No. 106 of 2025 establishes a specific penalty framework for non-compliance with the Electronic Invoicing System, applicable only to entities legally required to use the system. Key penalties include AED 5,000 monthly for delayed implementation, AED 100 per e-invoice for late transmission, and AED 1,000 daily for failing to report system malfunctions.
Amendments to VAT Law: Federal Decree-Law No. 16 of 2025 amends the VAT Law effective January 1, 2026, simplifying administrative processes and tightening input tax recovery controls. Important changes include the removal of the need for self-invoices in certain transactions, a five-year limit on reclaiming excess input tax, and new anti-evasion measures allowing the Federal Tax Authority (FTA) to deny input tax recovery linked to evasion chains.
Combined Impact on Businesses: The new e-invoicing penalties and VAT amendments create a more structured and compliance-focused environment for UAE businesses. Companies must prioritize e-invoicing readiness, maintain robust documentation, and actively monitor refund timelines to mitigate financial penalties and manage tax risks effectively.