Cyprus requested to implement EU VAT E-invoicing Directive
The European Commission has requested Cyprus to introduce the latest EU e-invoicing VAT Directive along with all the other member states.
EU Electronic Invoicing Directive
The 2nd EU VAT Directive on Invoicing covers the introduction of optional electronic invoicing regimes to help reduce the volume and costs of paper invoices. It was published in 2010, and member states were obliged to transpose it into their local legislation by 1 January 2013.
The new invoice directive covers formats and processes to be applied to enable companies, suppliers and customers to use e-invoices as a substitute for paper invoices for tax and audit purposes. Issues including:
- Allowable electronic invoice formats (PDF’s, XML etc)
- Prerequisites for the their acceptance (e.g. written consent of customers)
- Systems for ensuring authenticity, including electronic signatures
- Business controls around the creation and storage of e-invoices
- Audit trial
- Rules for determining which countries e-invoicing rules to be adopted in the case of intra-community supplies of goods or services.
Cyprus last to enact 2nd VAT Invoice Directive
So far, Cyprus has not implemented the latest Invoice Directive. The Reasoned Opinion issued by the European Commission gives it 60 days to act. If it fails to do so, then the EC may refer it to the European Court of Justice, the highest court of appeal on EU legal and trade matters.