What is real-time invoice reporting?
The electronic invoice reporting is a real-time tax data reporting model for audit purposes. This audit report model currently applies in Hungary, Spain, Greece, and Turkey. This is very common in Europe as governments cannot make business-to-business (B2B) e-invoicing mandatory because of EU law. In contrast to electronic invoicing, e-invoices are not directed to buyers from the tax authority, as they are part of the invoice reporting model. Instead, invoices are sent to both the tax authority and buyers separately by the supplier. The invoicing process continues independently.
Real-time invoice reporting (RTIR) currently exists in Spain, Hungary, and Greece. In July 2017 Spain’s Immediate Invoice Reporting (SII) system came into effect. One year later, in July 2018, Hungary mandated taxpayers to provide invoice data to the online invoice system shortly after issuance. And Greece recently launched the MyData E-books system featuring real-time invoice reporting obligations.
Requirements for electronic real-time invoice reporting format:
Required invoice details must be sent to the tax authority in a defined electronic format. When a business issues an outbound invoice to one of its partners, this information must also be submitted to the relevant tax authority. Only the invoice header information, the total amount, and the VAT amount has to be communicated. This information is then formatted into XML files that are then submitted to the tax authority.
How can SNI help you with electronic invoice reports?
With SNI’s solution, when an outbound invoice is issued to a trading partner or other organization, the SAP add-on automatically extracts the relevant invoice data. This data is then converted into electronic XML files. Users can monitor this process easily through the SNI Cockpit. Finally, via an SNI Connector, the information is submitted to the tax authority in real time. SNI has add-on solutions meeting the requirements for each of the aforementioned countries’ obligations on real-time invoice reporting.