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Cyprus requested to implement EU VAT E-invoicing Directive

  • Nov 21, 2013 | Richard Asquith

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.