Concept Definition
What is mandate compliance in e-invoicing?
Mandate compliance refers to a business's adherence to government-imposed e-invoicing obligations, including issuance in approved formats, use of certified transmission channels, reporting to tax authorities, and meeting deadlines. Non-compliance typically results in financial penalties and may invalidate invoices for VAT purposes.
What are the penalties for mandate non-compliance?
Penalties for e-invoicing mandate non-compliance vary by jurisdiction:
- France: Fines for failure to issue or receive compliant e-invoices (amounts set by DGFiP regulations).
- Germany: Invoices not in an accepted format may be invalid for input VAT deduction.
- Italy: Invoices not transmitted via SdI are not legally valid. Buyer cannot reclaim input VAT.
- Saudi Arabia: ZATCA can block business registration for persistent non-compliance.
Frequently Asked Questions
- Does mandate compliance apply to foreign suppliers?
- Yes. If a foreign supplier makes taxable supplies in a jurisdiction with an e-invoicing mandate, the mandate applies to those supplies. In France, the B2B mandate applies to invoices between French VAT-registered entities regardless of the ultimate ownership of the supplier.
- How can a business prepare for mandate compliance?
- Preparation involves: identifying all in-scope invoice flows, selecting a compliant platform (PDP, certified Access Point), updating ERP systems to generate approved formats, registering with the required authority or platform, and testing end-to-end invoice flows before the mandate deadline.