CFDI: Changes to electronic invoice CFDI 3.3 and CFDI complements in 2018

Mexico CFDI

The SAT has been publishing a series of facilities around CFDI 3.3 and CFDI Complements throughout 2017. We have compiled all these updates to establish a schedule of the most relevant changes in the electronic invoice in Mexico CFDI in 2018.

  1. CFDI 3.3: Comes into force as mandatory on January 1, 2018.
  2. Foreign Trade Complement: Version 1.1 will be the only version valid as of January 1, 2018.
  3. Electronic Payment Receipt (Payments add-on): Continues to be optional until March 31, 2018.
  4. The cancelling of invoices scheduled for January 1, 2018 is postponed until July 1, 2018.
  5. The Retail Complement may continue to be used with CFDI 3.3: The SAT has confirmed that this complement will remain active, so that those companies that already used it can continue doing so or those that wish to do so, have it available.
  6. Managing advance payments with CFDI 3.3: For the updated CFDI version, the SAT has defined how to manage advance payments by issuing a different CFDI for each moment of the transaction statement as a whole.–> Download the updated CFDI White Paper!

–> Read the full article about the CFDI changes for 2018.

2018 Roadmap: Changes in e-Invoicing in LATAM countries

e-Invoicing LATAM

The diversity of Latin America can be seen in the different plans being carried out by each country. It is the most advanced region in terms of e-Invoicing, however each country is in a different maturity  phase in relation to the electronic invoice. The implementation of e-Invoicing has many advantages for governments that are realizing that the best way to monitor tax payments and fiscal audits is through electronic invoicing.

South America: At the Forefront of the Electronic Invoicing World

The electronic invoice is already present in many Latin American countries as the only accepted invoicing model. In countries like Mexico and Brazil, the electronic document is already used in 100% of commercial operations. In other countries like Chile, Argentina, Colombia, Peru, Costa Rica and Uruguay work is being done to fully implement it in the medium term.

Chile, Mexico and Brazil were pioneers in using the electronic invoice. In these countries, the model has become widespread and it’s now moving towards other tax compliance procedures such as electronic accounting and e-VAT processes. The goal is to facilitate these tasks for taxpayers and to reduce economic costs.

–> Discover EDICOM’s solution for Global e-Invoicing.

Changes to the electronic invoice in 2018

In Brazil, the electronic invoicing system is one of the most consolidated in the world. It’s the world’s largest power in issuing electronic tax documents through different invoicing models. In 2018 a new document called the EFD-REINF will be mandatory for the transmission of withholding taxes related to the provisions of services to SPED. On July 2nd, it will be mandatory to migrate to the new version (4.0) of NF-e. In January 2018, the validation of EAN codes included in the fiscal notes for CNAE group 324 was launched and progressively extended to other economic activities.

Chile will complete the last phase of migration for rural microenterprises in February 2018 both for the issuance and receipt of electronic invoices.

Colombia will be one of the leading countries in terms of the widespread implementation of electronic invoicing next year. So far, this model has had a low adoption rate. However, DIAN has launched a progressive adoption project. Those taxpayers that have already requested numbering ranges for electronic invoices according to decree 1929 must invoice electronically starting in January 2018. Additionally, the DIAN is working on a resolution which will require selected large taxpayers to start their electronic invoice project in 2018. In 2019, all Colombian companies must use this system.

2018 will be the year for electronic invoicing adoption in Costa Rica. The country is in the process of implementing the electronic invoice in phases. The DGI is responsible for notifying selected companies about the mandatory use of the e-invoice. In addition, the DGI has published compliance start dates for taxpayers who provide a professional service independently as a natural or legal person by sectors or activities. Click here to check the calendar for adopting the electronic invoice in 2018.

Ecuador has established the mandatory use of issuing electronic invoices for new taxpayers starting on January 1, 2018. These new e-invoice issuers must obtain an electronic certificate and request membership to the issuer system in order to register the SRI’s test and production environments. Also, Ecuador will implement a new electronic invoicing schema in 2018. On January 1, 2018, the current online model in which the SRI received invoices to authorize them will no longer be used. Only the offline model referred to in Resolution 0079 will be used. This offline model was previously used mainly for contingency situations.  With this model, the contingency codes are eliminated since it allows for the simultaneous transmission of electronic documents to the SRI and receiver. The objective is for authorization to take place immediately.

Mexico will continue making improvements to the CFDI. On January 1st the use of version 3.3 of the CFDI will be mandatory. Also on this date, the only authorized version of the foreign trade complement will be version 1.1. A new complement, the Electronic Payment Receipt, will be mandatory starting on April 1, 2018. Finally, starting on July 1, 2018 the approval process for cancelling electronic invoices will become effective.

In Paraguay, the electronic invoice project is expected to advance significantly in 2018 with the legislation coming into force. A pilot project will be set up with some voluntary companies and e-Invoicing regulation is expected to be communicated to taxpayers in mid-2018.

There are still some countries in South America that have yet to implement electronic invoicing. However, the truth is that changes produced in countries that use this system make LATAM one of the leading continents in the process of incorporating the global electronic invoice. It is foreseeable that the governments of the countries will follow suit over time.

Do you want to be aware of all the news about electronic invoicing in any country in the world? Do you want to know the details about the electronic invoice in the rest of Latin America? At  Global e-Invoicing, we’ll tell you all the details.

Hungary to implement real-time VAT returns through SAF-T by July 2018

Hungary VAT

The Hungarian Ministry of Economy is delaying the deadline set by Decree 23/2014 for the rollout of real-time VAT declarations until July 1, 2018. The government is still working on finalizing the details of the process, such as the communication protocol that will be used to send the data.

To kick-start this process, the Hungarian government has created a platform called KOBAK through which tests can be run to check if the data exported from the XML are correct.

The standard used for the generation of this XML will be SAF-T. The SAF-T standard is a structured format widely used for the exchange of tax information with tax agencies, such as electronic accounting and e-VAT. Its use is widespread in Europe in countries such as Portugal, Poland, Luxembourg, Lithuania, France, Norway or Austria.

Taxpayers must send the VAT information of each invoice within 24 hours as of its issuance. The obligation affects all invoices that contain at least 100,000 HUF in VAT. This is approximately 320 euros. It will also affect foreign companies registered in Hungary for VAT purposes. Failure to comply with this law can lead to fines of up to 500,000 HUF (€1,600 per invoice).

This new system will affect the internal procedures in companies when registering and preparing the information to be sent. Carrying out these tasks for each invoice received can mean spending a large amount of human resources and time on these tasks. But there are technological solutions that can guarantee compliance with the immediacy demanded by the regulation.

–> Download free White Paper on Global VAT Compliance

How to automate the generation and sending of e-VAT?

The solution consists of automating creation of the XML file from the ERP and the subsequent sending to the tax authority through the connection required by the same.

EDICOM, as a specialized technological partner, is able to perform the entire process automatically to avoid major changes in the in-house procedures of companies. The flow would take the following steps:

  1. Data capture: EDICOM’s solution automatically takes the invoice data required by the administration from the client’s ERP.
  2. Generating the structured SAF-T file.
  3. Connection with the Hungarian Tax Authority: Automates forwarding of the previously validated file for registration and authorization by the administration.
  4. File sending.
  5. Reception and archiving of acknowledgments and integration in the ERP.

The entire process is automatic, performed in a matter of seconds and totally transparent to the user. This means that accounting and admin departments can continue to work from their usual management systems.

In addition, the EDICOM Platform is not only ready for e-VAT returns, but also for e-Invoicing and any other business or tax communications.

Other current e-VAT systems

In Spain, on July 1, 2017, a similar system was launched, called SII. In this case, the companies have 4 days from the issuance or receipt of the invoice to declare the taxes. They do so directly to the Tax Agency’s electronic office, which returns the corresponding acknowledgments.

Lithuania has rolled out a smart tax administration system designated i.MAS. This modernization initiative is based on three areas: the e-waybill (i.VAZ), e-invoicing and VAT returns (i.SAF), and the electronic tax audit (i.SAF-T) file.

In Poland, the Ministry of Finance requires taxpayers to declare their VAT records electronically through the JPK_VAT file. The JPK_VAT file, which includes the company’s purchases and sales VAT records, must be submitted by day 25 of each month.

White Paper on e-VAT returns worldwide

In general, tax agencies around the world are moving towards electronic tax compliance. However, in a global market like today’s, each country continues to issue its own standards. This hampers the adaptation of companies that find technology both a challenge and an opportunity, in equal measures. To this end, EDICOM has published a free white paper explaining how to issue an electronic VAT return in each world region.

Our Global VAT Compliance Expert Analysis (available in English and Spanish) is a resource for companies operating in several countries or intending to do so. Through it, you can find out how the indirect tax VAT works, how it is regulated and what its implications are both for companies and tax authorities.

–> Download free White Paper on Global VAT Compliance

Facturae to include new e-invoicing format version 3.2.2

Facturae

The format of Facturae e-invoicing with Public Administrations in Spain is due to undergo a change in XML schema to the new version 3.2.2, as published in the Resolution of August 24, 2017 by the Secretary of State for Information Society and Digital Agenda and the Secretaries of State for Finance and Budgets and Expenses.

This modification requires a change in the XML schema used for e-invoicing with public administrations in Spain.

Read the complete article about the new Facturae version 3.2.2.

The impetus of e-Commerce: new opportunities and challenges for B2B

e-Commerce

The annual spread of e-Commerce worldwide shows that shopping habits are set to continue on the online path. Benchmark studies, like the one drafted by consulting firm Frost & Sullivan, confirm this growth. Global sales through e-Commerce are forecast to reach 9.8 billion dollars in the year 2020. This means an increase of 30% compared to 2017.

In the B2B (Business-to-Business) area, the trading volumes in e-Commerce are currently higher than for the B2C (Business-to-Consumer) sector, and the trend is forecast to continue. In 2020, the volume of e-commerce between companies will be 50% greater than between companies and consumers.

This scenario means that companies operating in the B2B sector must adapt to the demands of their clients and undertake the digital transformation required by e-Commerce; and not only to increase their market share, but to stay in it.

One of the important reasons that companies have to embark on e-commerce is clear from the study “Mastering Omni-Channel B2B Customer Engagement”, by Forrester Consulting. The report states: “The demands of B2B buyers have changed the rules of the game for sellers in this business area. Buyers, conditioned by their personal experiences as consumers and encouraged by digital technologies, expect a consistent and personalized experience at each stage of the purchasing process”, in other words, like what takes place in the B2C field.

In this sense, Forrest Consulting considers: “For B2B companies to succeed in their future advances in digital commerce, they must reconsider the approach they take to client engagement (which in marketing means forging solid and lasting relationships with users, generating commitment between the brand and consumers) and how they get involved with people, processes and technology to drive that loyalty across all channels.”

The role of EDI in e-Commerce

With the adoption of EDI (Electronic Data Interchange) systems, companies operating in the B2B scope have already benefited from their production processes and responded efficiently to their customers’ demands. EDI system solutions, like those provided by EDICOM, let you connect with any retailer, supplier or manufacturer from a single communications platform, able to maintain a fluid exchange of commercial messages with any supplier: orders, despatch advices, delivery notes, invoices, etc. All this in a secure, automated and immediate environment. Sectors such as fashion or logistics were the first to clearly perceive the advantages EDI might offer their businesses.

The spread of e-Commerce, the increase in online orders and increasing demand for immediacy in deliveries give rise to the need to optimally and instantly manage supply chain and stock management information. This is where EDI comes in as a key factor. By processing the business documents exchanged in any B2B relationship electronically and automatically, companies get instant information on the status of their goods and can quickly forecast and manage stocks or new orders.

More benefits of EDI:

  • Allows integration of communications with companies’ in-house IT systems.
  • Business transactions processed automatically.
  • Companies’ administrative, management and logistics processes optimized.
  • Quicker turnaround times in goods receipt and delivery.
  • Enhanced security and confidentiality in communications.
  • Economic costs kept down by computerizing all the company’s communication processes.

With the changing habits of consumers and companies around e-commerce, companies must also adapt to meet the expectations of immediacy, security and availability that today’s online shopping demands. EDI does not connect with the consumer directly, but provides businesses with better management of all the information handled and, in consequence, a better final consumer experience.