Worldwide updates on E-Invoicing/Real Time Reporting/SAF-T in February 2025

For the Podcast version on SPOTIFY, click HERE

The Overviews

Join the Linkedin group on ”Global E-Invoicing/E-Reporting/SAF-T Developments”, click HERE

Highlights

AFRICA

Botswana: E-invoicing solution set to transform tax compliance in Botswana by March 2026

Electronic Invoicing Initiative: The Minister of Finance and Economic Development highlighted the implementation of an electronic invoicing solution as a pivotal initiative in the 2025/2026 Budget Speech, aimed at enhancing tax compliance and efficiency with a completion target set for March 2026.
Strategic Tax Law Reforms: The budget outlines ongoing strategic tax law reviews, including the introduction of three key tax bills: a new Tax Administration Act, a revised Income Tax Act, and a revised VAT Act, all designed to strengthen the tax framework.
Enhanced Tax Compliance Measures: The Botswana Unified Revenue Service (BURS) plans to implement various measures to boost compliance, including introducing VAT on digital transactions by September 2025 and employing technology-driven solutions for real-time tracking of VAT transactions, which will improve reporting accuracy and reduce illicit trade.

Nigeria’s FIRS Launches E-Invoicing Pilot for Large Taxpayers

On February 17, 2025, the Federal Inland Revenue Service (FIRS) announced plans to initiate an e-invoicing pilot in the second half of the year, targeting selected large taxpayers during a stakeholder engagement meeting.
This pilot follows FIRS’s earlier announcement in September 2024 about mandatory e-invoicing through the FIRS e-invoice system, part of the Tax Administration Solution 3.0 project, with ongoing consultations and stakeholder engagement.
The national e-invoice, compliant with global best practices and utilizing BIS Billing 3.0 UBL for e-invoice exchange, aims to gather insights from the pilot to inform broader implementation for additional taxpayer groups.

ASIA

Indonesia – E-Faktur Client Desktop: New Option for Tax Invoice Creation

E-Faktur Client Launch: Starting February 12, 2025, Taxable Entrepreneurs (PKP) can use the e-Faktur Client Desktop application to create tax invoices for Taxable Goods and Services, as outlined in Decree KEP-54/PJ/2025.
Exclusions from E-Faktur Use: The application cannot be used for specific transaction codes (e.g., other deliveries to foreign passport holders) or for centralized VAT invoicing by branches, and tax invoices confirmed after January 1, 2025.
Multiple Invoice Creation Channels: PKP can create tax invoices through three channels, including Coretax DJP and integrated Tax Application Service Providers, with specific guidelines for serial number applications and data availability in Coretax DJP.

Malaysia – New e-Invoice Guideline Version 4.1 and Specific Guideline Version 4.0

Revised E-Invoice Guidelines: On January 28, 2025, the Inland Revenue Board of Malaysia published updated versions of the e-invoice Guidelines (v.4.1) and Specific Guidelines (v.4.0), which clarify rules regarding self-billed transactions, exceptions for self-billed e-invoices, and the consolidation of self-billed transactions.
Exemptions and Consolidation Rules: The new guidelines specify that certain international organizations are exempt from issuing e-invoices, including self-billed invoices. Additionally, consolidation of self-billed transactions is generally disallowed, with exceptions for claims from insurance companies to non-business individuals and transactions involving taxpayers’ overseas branches.
New Requirements for Self-Billed E-Invoices: Buyers must now issue self-billed e-invoices for specific transactions such as capital reductions and liquidation proceeds. The guidelines also clarify exceptions for self-billed e-invoices related to interest payments, including new provisions for interest paid to related companies and late payment charges, which must be implemented by July 1, 2025.

Malaysia Updates e-Invoicing Timeline – New Implementation Dates & Interim Measures

Revised e-Invoicing Timeline: Malaysia has introduced a phased implementation schedule for e-Invoicing based on annual turnover, with deadlines set from August 2024 to January 2026, allowing businesses to prepare adequately for compliance.
Interim Relaxation Measures: A six-month interim relaxation period for each implementation phase will enable businesses to gradually adopt e-Invoicing practices without immediate compliance pressure, allowing for consolidated invoicing and custom information input.
Preparation Recommendations: Businesses of varying sizes are encouraged to proactively enhance their invoicing systems, train staff, and utilize government resources during the interim period to ensure a smooth transition into the new e-Invoicing framework.

Malaysia’s Updated Timeline for e-Invoicing Implementation

Postponement of e-Invoicing Deadline: The Malaysian government has extended the e-Invoicing deadline for small and medium enterprises (SMEs) with annual sales between RM150,000 and RM500,000 to January 1, 2026, providing over 240,000 SMEs with a six-month transition period to adapt.
Exemptions and Government Support: SMEs with annual sales below RM150,000 are exempt from e-Invoicing requirements, benefiting over 700,000 small traders. To support the transition, the government offers free access to the MyInvois portal, a mobile app for tax submission, and nationwide training conducted by the Inland Revenue Board (LHDN).
Tax Incentives for Digital Transformation: The government has introduced various tax incentives to assist SMEs in adopting e-Invoicing, including capital allowances for ICT investments and tax deductions for e-Invoicing consultancy fees, aiming to facilitate a smooth transition and encourage digitalization by 2026.

EUROPE

Belgium – Non-established entities may be exempt from the E-Invoicing obligation

Mandate as of July 1, 2026:Belgium will implement E-Invoicing for domestic transactions as of January 1, 2026. The mandate also included non-established entities to receive E-Invoices.
E-Invoicing Obligations:Belgium’s requirement for non-established entities to receive E-Invoices diverges from the EU VAT Directive, complicating harmonization and increasing costs for multinational corporations.
Recent Clarification:During a recent webinar, it was suggested that non-established entities may be temporarily exempt from this obligation until electronic reporting is fully implemented by 2028.

Belgium will introduce near-real time reporting as of 2028

Implementation by 2028: Belgium plans to introduce near real-time transaction reporting requirements by 2028 as part of its VAT reforms.
Complementing E-Invoicing: These new obligations will complement the e-invoicing requirements set to start in January 2026, further combating tax evasion.
Integration with Systems: The reporting will involve automatic data transmission to the tax authority, integrating with cash registers, payment, and invoicing systems, with details and timelines still to be clarified.

Bosnia and Herzegovina Holds Public Hearing on Draft E-Invoicing Law

Bosnia and Herzegovina has initiated a public hearing on the Draft Law for Fiscalisation of Transactions, running from January 1 to March 1, 2025, to gather input on e-invoicing and real-time reporting regulations.
The draft law aims to implement mandatory e-invoicing for B2B, B2G, and B2C transactions to combat tax fraud, with a focus on creating an effective legal framework through public consultation.
Interested parties can submit feedback via a Public Discussion Form available on the Federal Ministry of Finance’s website, which will inform the final proposal for the e-invoicing law.

Croatia Proposes Mandatory Electronic Invoicing as of Jan 1, 2026

Expansion of Fiscalization Scope:The proposed law broadens the existing fiscalization framework by mandating the fiscalization of all invoices related to final consumption (B2C), as well as the issuance and fiscalization of electronic invoices (eInvoices) in business transactions between taxpayers (B2B) and between taxpayers and public bodies (B2G). This transition aims to enhance transparency and efficiency in tax monitoring.
Implementation of eInvoices:A significant feature of the proposal is the introduction of mandatory eInvoices starting January 1, 2026, for taxpayers in the VAT system, with a complete transition from paper invoices to eInvoices by January 1, 2027. The law outlines the procedures for issuing, receiving, and fiscalizing eInvoices, enhancing real-time data reporting to the Tax Administration to combat VAT fraud and streamline tax compliance.
Administrative Benefits and Cost Savings:The law is expected to reduce administrative burdens significantly by eliminating various tax returns and paperwork associated with traditional invoicing, leading to estimated savings of over EUR 120 million for businesses. Additionally, the law promotes the use of a free application for small taxpayers to facilitate the transition to digital invoicing, encouraging a more efficient and environmentally friendly approach to business operations.

EU Parliament Advances ViDA Reforms, Final Ratification Expected by March 2025

Approval of ViDA Package: On February 12, 2025, the EU Parliament approved the VAT in the Digital Age (ViDA) package, following a political agreement among member states. This package aims to modernize the VAT system by introducing mandatory digital reporting requirements, e-invoicing, and new rules for the platform economy, with full implementation expected by 2035.
Key Reforms and Implementation Timeline: ViDA includes significant reforms such as the expansion of the One-Stop Shop (OSS) for cross-border transactions by July 2028, mandatory VAT collection for online platforms by January 2030, and a full transition to digital reporting and structured e-invoicing by July 2030. These changes are designed to enhance compliance, reduce fraud, and streamline VAT management for businesses.
Impact on Tax Compliance and Fraud Prevention: The ViDA package aims to tackle an estimated €11 billion annual loss in VAT revenues due to fraud by implementing real-time digital monitoring and improved transparency. The phased rollout of these reforms will require businesses to adapt to new compliance requirements, ultimately leading to a more efficient and harmonized VAT system across EU member states.

Greece – Council of the EU approves implementation of Mandatory Electronic Invoicing for B2B Transactions in Greece

Special Measure for Electronic Invoicing:Greece is authorised to implement mandatory electronic invoicing for transactions between taxable persons within its territory, deviating from Articles 218 and 232 of Directive 2006/112/EC, from 1 July 2025 to 31 December 2027.
Implementation and Benefits:The measure aims to enhance the efficiency of tax collection, reduce VAT fraud, and simplify administrative processes through real-time data transmission to Greece’s myDATA platform. It is expected to lower costs associated with paper invoicing and improve compliance.
Conditions and Reporting:Greece must notify the European Commission of the national measures taken to implement this decision and provide a report by 31 March 2027 assessing the measure’s effectiveness in combating VAT fraud and its impact on businesses. The measure will cease if a general EU system for electronic invoicing is adopted before the end date.

Italy E-invoicing Schema Update: Key Changes Effective April 1, 2025

New Document Type and Tax Regime Code: The updated version 1.9 of the Italian mandatory e-invoicing specifications introduces Document Type “TD29” for reporting omitted or irregular invoices and a new Tax Regime Code “RF20” for taxpayers under the cross-border VAT exemption established by EU Directive 2020/285.
Revised Document Types: The description of Document Type “TD20” has been updated to eliminate scenarios now addressed by TD29, ensuring clearer categorization for invoicing purposes.
Changes to Value and Error Codes: The update includes new value codes for fuel sales, replacing the previous code “27101943” with “27101942” and “27101944,” as well as revisions to several error codes to incorporate the new Document Type “TD29” and accommodate the cross-border VAT exemption regime.

Norway Explores e-Invoicing for Businesses as a future Outlook

Investigation into Digital Bookkeeping and e-Invoicing: The Norwegian Ministry of Finance is investigating digital bookkeeping and e-Invoicing requirements to enhance competitiveness, improve tax compliance, and streamline reporting obligations for businesses, potentially adopting a model similar to Denmark’s mandatory e-Invoicing system.
Existing Framework and Future Expansion: Norway has mandated e-Invoicing for Business-to-Government (B2G) transactions since 2012 and is considering extending this requirement to Business-to-Business (B2B) transactions to improve tax reporting efficiency and reduce fraud.
Timelines and Business Preparedness: The Ministry plans to complete its investigation by mid-June 2025, but a timeline for implementing mandatory e-Invoicing has not been established. Businesses are advised to monitor updates, assess their systems for compatibility, and prepare for potential compliance requirements in the near future.

Slovenia Postpones Mandatory B2B E-Invoicing to 2027

On February 11, 2025, the Financial Administration of the Republic of Slovenia (FURS) published a new draft law introducing mandatory B2B e-invoicing, which postpones its implementation from June 2026 to January 2027 for all taxpayers.
The revised draft removes the requirement for near real-time e-reporting to FURS and includes the Peppol network as a valid exchange option for B2B e-invoicing, alongside certified service providers and direct exchange methods under specific compliance conditions.
Stricter requirements for service providers, including ISO/IEC 27001 certification, are introduced, and B2C e-invoicing is permitted with prior agreement, while the draft law will be submitted to the National Assembly for further legislative consideration.

UK Government Launches Consultation on e-Invoicing: A Step Toward Digital Efficiency

Public Consultation Initiative: On February 13, 2025, the UK Government initiated a public consultation to accelerate the adoption of electronic invoicing (e-Invoicing) across businesses and the public sector, aligning with global digital tax reforms like the EU’s VAT in the Digital Age (ViDA) initiative. The consultation aims to gather input from various stakeholders on implementing a standardized e-Invoicing framework that enhances efficiency, reduces administrative burdens, and ensures compliance.
Key Focus Areas for Feedback: The consultation addresses several critical areas, including whether e-Invoicing should be mandatory or voluntary, the standards for interoperability with existing systems, the government’s role in implementation, and how e-Invoicing can be integrated with the UK’s VAT reporting system to strengthen tax compliance and reduce fraud.
Expected Benefits and Next Steps: A structured e-Invoicing system is anticipated to provide substantial benefits, including reduced errors, faster payments, and improved tax compliance for businesses, while enhancing transparency and efficiency for the government. The consultation will conclude in April 2025, with the government analyzing feedback and potentially releasing a roadmap for e-Invoicing implementation later in the year, indicating a significant shift towards digital tax compliance in the UK.

LATIN AMERICA

Bolivia postpones deadline to comply with the e-invoicing obligation for taxpayer groups 10 and 11

Deadline Extension: The Bolivian National Tax Service (SIN) has postponed the deadline for taxpayer groups 10 and 11 to issue digital tax documents from February 1, 2025, to March 1, 2025.
Resolution Details: This change was announced in Resolution No. 102500000006, which revises previous resolutions regarding the online billing modality for issuing digital tax documents.
Impact on Taxpayers: The extension will affect 7,586 taxpayers, who can find more information about their obligations on the National Tax Service’s website.

Brazil Introduces NFCom as a New Mandatory E-Invoicing Requirement

Updated Implementation Timeline: Brazil’s SINIEF Adjustment No. 34/24 establishes that the mandatory adoption of NFCom, a new invoicing requirement for ICMS taxpayers, will begin on November 1, 2025, streamlining invoicing for Communication and Telecommunications services.
Real-Time E-Invoicing Features: NFCom will introduce real-time validation and a standardized XML format, replacing the outdated models and improving compliance efficiency. Key features include event tracking, digital signatures, and mandatory archiving for five years.
Impact on Telecommunications Sector: The NFCom is expected to significantly enhance compliance and reduce operational costs for the telecommunications industry, which plays a crucial role in Brazil’s economy, with over 336 million active service contracts as of January 2023. Businesses can test NFCom transmissions and voluntarily adopt the system before the official deadline.

Costa Rica Extends Electronic Invoicing Deadline to September 2025

New Implementation Deadline: Costa Rica’s Ministry of Finance announced that taxpayers must implement version 4.4 of electronic invoicing rules by September 1, 2025, extending the original deadline of June 1, 2025.
Reason for Extension: The extension aims to provide taxpayers and developers additional time to adjust their systems for proper electronic invoice issuance, ensuring a smooth transition to the updated requirements.
Importance of Electronic Invoicing: Electronic invoices are crucial for the pre-population of information in self-assessment returns as part of the TRIBU-CR project, which aims to enhance the digital treasury transformation in Costa Rica.

Dominican Republic Offers Tax Credit for E-Invoicing Adoption

Tax Credit Overview: The Dominican Republic’s DGII issued Notice No. 05-25, establishing a tax credit for businesses implementing e-invoicing, applicable to various tax liabilities within the same fiscal year.
Credit Details: The maximum credit limit is set at 2 million Dominican pesos (approximately US$32,161), and businesses must apply within six months of the notice’s publication to be eligible.
Eligibility and Restrictions: Certain conditions must be met to qualify, with exclusions for those using DGII’s free invoicing technology or under special tax regimes; the credit cannot be refunded or offset against other taxes.

Pakistan Implements New Electronic Invoicing Mandate for Taxpayers Effective Feb. 3, 2025

Mandatory Electronic Linkage: All registered persons must electronically link their electronic fiscal devices with the Federal Board of Revenue (FBR) and report this linkage through the online platform.
Electronic Invoicing Requirements: Registered persons are required to use linked devices capable of issuing electronic invoices in the prescribed format, which must be validated through FBR’s systems. Transactions must only be carried out through these linked devices.
CCTV Monitoring and Data Storage: Taxpayers must establish CCTV monitoring in areas where these devices are used, with recordings stored for at least one month and provided to FBR upon request.

Saudi- Arabia: ZATCA Determines Criteria for Selecting Taxpayers for 20th Wave of E-Invoicing Integration

Criteria for Inclusion in 20th Wave: The Zakat, Tax and Customs Authority (ZATCA) announced that taxpayers in Saudi Arabia with a taxable turnover exceeding SAR 1.5 million in 2022 or 2023 will be included in the 20th wave of Phase 2 e-invoicing integration, requiring compliance by October 31, 2025.
Notification and Compliance Timeline: Affected taxpayers will receive notifications from ZATCA, and they must integrate their electronic invoicing systems with ZATCA’s platform, Fatoora, within the specified compliance period of August 1 to October 31, 2025.
Ongoing Monitoring for Future Waves: Businesses not included in the first 20 waves should stay informed about future announcements from ZATCA regarding the integration timeline for subsequent waves to ensure timely compliance with e-invoicing regulations.

UAE e-Invoicing: A New Digital Era for Tax Compliance

Introduction of e-Invoicing Framework: The UAE has announced a new e-Invoicing framework set to be implemented starting July 2026, aimed at enhancing tax compliance and efficiency through a Peppol-based Continuous Transaction Controls (CTC) system. This framework will initially focus on business-to-business (B2B) and business-to-government (B2G) transactions, excluding business-to-consumer (B2C) transactions.
Implementation Timeline and Business Requirements: A phased implementation process is established, with key milestones including the accreditation of UAE service providers beginning in Q4 2024 and the release of final technical documentation in Q2 2025. All VAT-registered businesses, as well as non-VAT registered entities conducting taxable activities, must comply with the e-Invoicing requirements.
Structured Data and Invoicing Scenarios: The e-Invoicing system will utilize the PINT AE Data Dictionary to ensure consistency and compliance across invoicing practices. It identifies 16 invoicing scenarios, each with specific data requirements, necessitating that businesses align their invoicing processes accordingly to avoid rejections and ensure proper categorization.

Argentina

Armenia