Post by Sapphire Capital on Jul 12, 2008 21:13:29 GMT 4
In ruling DGT number 22-07 issued as of October 1 2007, tax administration authorised the implementation of electronic invoices. However, in order for taxpayers to use this new system, several requirements must be met. For instance, all formal requirements established by section 18 of the regulations of the VAT Law and section 9 on the income tax law for paper invoices must also be met by electronic invoices. Some of these requirements include, identification of the taxpayer, consecutive numeration, date of the transaction, name of the buyer, a detail of the merchandise being acquired, subtotal amounts, applicable taxes, and total amount including taxes.
Also, if taxpayers decide to start using the electronic system to issue their invoices, they must first file for an authorisation and registration before the tax authorities.
Accordingly, the companies could now take advantage of using it as an alternative to paper invoicing if they wish. This system enables companies to save on storage and custody costs related to paper invoices.
The electronic invoice would have the same legal effects as the paper invoice. Although issuing an electronic invoice is legally authorised, it does not release the taxpayer from the obligation the buyer with the paper invoice if the buyers request it.
Furthermore, it is worth mentioning that one of the main requirements stated in this ruling is that the taxpayer authorised to issue electronic invoices must allow the tax administration to have direct access to the electronic invoicing system.
Also, if taxpayers decide to start using the electronic system to issue their invoices, they must first file for an authorisation and registration before the tax authorities.
Accordingly, the companies could now take advantage of using it as an alternative to paper invoicing if they wish. This system enables companies to save on storage and custody costs related to paper invoices.
The electronic invoice would have the same legal effects as the paper invoice. Although issuing an electronic invoice is legally authorised, it does not release the taxpayer from the obligation the buyer with the paper invoice if the buyers request it.
Furthermore, it is worth mentioning that one of the main requirements stated in this ruling is that the taxpayer authorised to issue electronic invoices must allow the tax administration to have direct access to the electronic invoicing system.