Developments in the EU VAT landscape of electronic reporting
Some developments in various EU countries with regard to VAT electronic reporting are outlined in this article.
The Polish extended Standard Audit File for Tax (SAF-T/JPK_VAT) was supposed to replace the periodic VAT return this year. However, the implementation date has again moved from 1 July 2019 to 2020. The current intention is that the mandatory SAF-T submission will be implemented in steps:
- January 1, 2020: for all large taxpayers (over 250 employees or turnover about € 50m per annum);
- July 1, 2020: for all other taxpayers.
Romania has also planned to introduce a SAF-T for VAT by the end of 2020. The obligation to submit the SAF-T will be applicable to all businesses registered for VAT in Romania, so including foreign businesses. The intention is to start with a pilot.
The Hungarian tax authority is also considering a pilot for SAF-T, this trial has an aimed start of 2020.
Portuguese established companies are required to issue invoices using a certified invoicing software when their annual revenue has exceeded € 100.000 in the previous year. This threshold has changed to € 75.000 in 2019 and will decrease to € 50.000 in 2020.
In a decree-law N.º 28/2019 dated February 2019, the Portuguese Tax Authorities have defined/clarified the rules regarding the certified software and the invoices requirements. It was stated that the use of certified invoicing software is mandatory for all companies registered in Portugal (established and/or not established) as from July 1, 2019. However, several queries have been raised regarding the implementation of this procedures for non-resident companies, with no fixed establishment and only a registration for VAT purposes.
If the rules would also apply to non-residents, this has some implications and challenges. For example, it will also be mandatory to inform the Portuguese Tax Authorities about the location of the physical archive of the invoices issued and all the supporting accounting documents, as well where the digital archive is made (if applicable). Should this be outside Portugal, it will be necessary to obtain pre-approval from the Portuguese Tax Authorities.
On June 27, 2019, the Portuguese Authorities have issued a written communication regarding the certified invoicing system for non-residents. According to this communication the previously announced deadline to comply (July 1, 2019) has been postponed until January 1, 2020. Also, according to the communication, the PT Tax Authorities should inform all the administrative, operational procedures and clarify all the queries raised by the taxpayers until October 1, 2019.
For now, we should wait for the clarifications (October 1, 2019). This also means that, if any obligation should arise for foreign businesses, these businesses will have 3 months for the implementation (from October 1, 2019 to January 1, 2020).
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