Previously, we discussed the development of the e-invoicing requirements and the status quo in the CEE (find the article here). Now it’s time to look at the most recent e-invoicing and CTC updates in Northern Europe, where e-invoicing mandates are being rapidly implemented. Countries are considering e-invoicing mandates because ViDA will likely make it mandatory to issue e-invoices for cross-border transactions, and national mandates will make it easier to manage the process.
Before we begin — a quick reminder. E-invoicing efforts in Europe are part of the VAT in the Digital Age (ViDA) directive by the European Commission. This direction is meant to make VAT more transparent and equal across Europe while simplifying the monitoring and reporting efforts.
Lithuania
Lithuania aims to implement a centralized e-invoicing platform by September this year. It will be based on the Peppol framework, complying with Peppol BIS 3.0.
Currently, the country requires e-invoices for B2G transactions. The mandate was implemented in 2017.
Sweden
Sweden is among the countries to begin requiring e-invoicing for B2B transactions, according to the position of The Swedish Agency for Digital Government (DIGG), the Swedish Tax Agency, and the Swedish Companies Registration Office.
Currently, the country has a mandate for e-invoicing B2G transactions.
Germany
The most recent information from Germany shows that the country intends to implement an e-invoicing mandate for business-to-business transactions. Contrary to many other countries, Germany hasn’t chosen a centralized reporting measure and will not implement a real-time clearance model.
The B2G e-invoicing has been mandatory in Germany since 2020 and currently involves transactions between businesses and state-owned authorities in some states. The system is being expanded, with most states joining by 2024. It is advised that all authorities accept e-invoices in Peppol format by October this year.
Finland
Even though Finland supports ViDA, as of yet, it doesn‘t have a B2B electronic invoicing requirement, yet clients can ask for an e-invoice if needed. This rule has been in place since 2020 for all companies that collect a turnover above €10,000.
Denmark
Denmark is establishing the digitalization of taxes via its Bookkeeping Act. By 31 October 2023, companies must align their systems with the new requirements to comply with OIOUBL and PEPPOL BIS formats. Digital bookkeeping should be implemented in Denmark between 2024 and 2026.
Latvia
Latvia is also considering the e-invoicing mandates after extensive consultations with stakeholders. As of now, it is expected that the requirement to issue B2B e-invoices should begin by 2025.
Latvia implemented its B2G e-invoicing mandate in 2020.
What’s next?
As you can probably see, there are still a couple of years of the transitional period left. Therefore, we recommend consulting trustworthy taxation experts to be better prepared for a digital future of VAT.
If you’re looking for expert partners in the field — contact our team, and we will provide as much individual support as needed.