In recent years, the APAC region, like others, has started e-Invoice implementation to prevent tax evasion and non-compliance. The APAC region has also started to regulate various aspects of the e-Invoice system in accordance with national standards for B2G and B2B transactions so that they can be sent through the PEPPOL network.
Already implemented by some countries in the APAC region, their aim is to make both the e-Invoice and CTC models mandatory in the future. For this reason, each country implements its own e-Invoicing models and decides on format, content and technical requirements depending on national standards.
Below you can see general information about the e-Invoice regulations of Australia, New Zealand, Vietnam, and the Philippines in the APAC region.
Australia
The Australian Government (Department of Treasury) took steps to implement e-Invoicing in Australia 2018, and has since announced that it will work with the PEPPOL network to implement e-invoicing in the country. Hence, from February 2019, public and private entities in Australia can send and receive invoices through PEPPOL. To be eligible to use the PEPPOL network, users must have an accredited PEPPOL access point. Accreditation of these access point owners and accredited members are audited by ATO.
The Australian government has launched e-Invoicing in the public sector. From July 1st 2022, e-Invoicing is mandatory for all B2G transactions following PEPPOL standards.
Also, e-Invoicing for B2B transactions has been supported by the Australian government through the Business E-invoicing Rights (BER). This means that businesses are legally obligated to accept and send e-Invoices if requested by a trading partner that issues or accepts e-Invoices. Therefore, with the determined timeline, all businesses will be allowed to request electronic invoices in PEPPOL format from their business partners, respectively. The BER initiative aims to gradually mandate the use of e-Invoicing in Australian businesses of their size.
The possible timeline for taxpayers as follows:
From July 1, 2023: Large businesses
From July 1, 2024: Medium-sized businesses
From July 1, 2025: Remaining businesses
There is no need to sign e-invoices before submission. The format is PEPPOL BIS Billing 3.0. E-Invoices should be archived for 5 years.
New Zealand
The implementation of e-Invoicing in New Zealand began in February 2019 with the New Zealand government’s announcement of the adoption of the PEPPOL standard for the Trans-Tasman e-Invoicing framework. New Zealand made a simultaneous announcement with Australia about this, and the PEPPOL authority was established in both countries. The Ministry of Business, Innovation and Employment (MBIE) in New Zealand is responsible for the process. By digitizing the invoicing system, the New Zealand government aims to save billions of dollars in ten years and aims to have 90% of B2G transactions done through e-invoicing by 2026.
To use e-Invoices in New Zealand, businesses must have a PEPPOL access point and a New Zealand Business Number (NZBN). The invoice format is PEPPOL BIS Billing 3.0 and e-Invoices must be archived for 7 years.
Vietnam
In Vietnam, the General Department of Taxation (GDT) implemented an e-Invoicing system in 2020 in two phases and taking into consideration the impact of the Covid-19 pandemic. To facilitate a smooth transition, businesses were given until July 2022 to adjust to the new system. As of July 1, 2022, the usage of electronic invoices became obligatory for both public and private sectors, including enterprises, economic organizations, business households, and individuals. These invoices must be issued in XML format with a digital signature, and the data collected needs to be archived for a period of 10 years. Prior to utilizing electronic invoices, taxpayers are required to register on the e-Invoice portal of the General Department of Taxation and undergo a registration and approval process.
Regarding the content of invoices, it is essential that all text is written in the Vietnamese language. If the inclusion of a foreign language is necessary, it should be positioned below or to the right of the Vietnamese text, and its font size must be smaller. Businesses operating in Vietnam should adhere to these guidelines to ensure compliance with the e-invoicing Vietnam regulations laid out by the tax authorities.
Philippines
In the Philippines, issuance of electronic receipts and invoices has been effective since 2022 as a pilot program. As a first step of Philippines e-invoice, identified taxpayers have been selected by the tax authority, the Bureau of Internal Revenue (BIR). In the coming years another list of taxpayers will be released by the responsible authority. Taxpayers engaged in the export of goods and services, electronic commerce (e-commerce), and taxpayers under the Large Taxpayers Service (LTS) are under regulation in Philippines.
From a technical perspective, the Electronic Invoicing/Receipting System (ElS) is capable of storing and processing the data required to be transmitted by taxpayers using their Sales Data Transmission System. Thus, the encrypted sales data to be transmitted to EIS shall be in Java Script Object Notation (JSON) file format.
In the second part, we will cover the general information about the e-Invoice regulations of Thailand, Singapore, Malaysia, Indonesia and South Korea from the APAC region in detail.
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