Electronic invoicing and the myDATA platform of the Independent Public Revenue Authority (AADE) have brought significant changes to the way businesses record and monitor tax data. One of the most important benefits of adopting electronic invoicing is the reduction of the statute of limitations for tax years, i.e. the period of time during which the State can impose taxes and fines. In this case, businesses can reduce the statute of limitations from 5 to 4 years, ensuring better security and more favorable conditions for the audit of their tax affairs.

A. Incentives for the issuer through electronic invoicing

The adoption of electronic invoicing offers significant benefits and incentives for document-issuing businesses:

1. Reduction of the limitation period from 5 to 3 years:
   For tax years 2020, 2021 and 2022, businesses that opt for electronic invoicing see their tax statute of limitations reduced to 3 years instead of 5.
   • In 2020, the statute of limitations is 31/12/2024
   • In 2021, the statute of limitations is 31/12/2025
   • 2022 expires on 31/12/2026
2. Increase in expenses:
   Businesses are entitled to an increase of 100% of the initial expenses for the purchase of equipment and software, as well as for the remuneration of the service provider during the first tax year of use of electronic invoicing.
3. Reduction of tax refund time:
   The tax refund process is faster, as the State must refund the tax within 45 days of submitting the return, instead of the 90 days that were previously in effect.

B. Incentives for the recipient through electronic invoicing

Businesses that choose to accept invoices electronically through any provider declare the use of this medium to the Tax Administration and benefit from the reduction of the statute of limitations for tax years from five to four (4) years. This means that for tax years 2020 and 2021, the statute of limitations will be reduced by one year, as explained below.

C. In detail I. – II. The provisions defining the limitation period

1. Article 71F of the Civil Code:
   According to article 71F of the Income Tax Code (ITC), businesses that choose electronic invoicing do not need to separately declare their acceptance of receiving the documents, as they are considered to have already done so through the declaration to the Tax Administration.
2. Benefits for reducing the statute of limitations:
   Businesses that declare the use of electronic invoicing (until the end of 2021) for all documents they accept can reduce the statute of limitations by one year for the tax year 2022. Thus, the State's right to impose tax for the year 2022 will expire in 2027, instead of 2028.
3. First declaration of commencement of work:
   New businesses that submit a declaration of commencement of operations in 2021 and declare acceptance of electronic invoicing for their tax year will immediately benefit from the reduction in the statute of limitations for the year 2021.

What are the benefits for the business?

1. Security for the business:
   The ability to reduce the statute of limitations helps businesses have better control over their tax affairs, protecting them from potential future tax statutes of limitations.
2. Economic benefit:
   Increments in the purchase costs of equipment and services for electronic invoicing reduce costs for businesses during the initial installation and adoption of the new technology.
3. Simplification of procedures:
   Electronic invoicing facilitates the process of issuing, transmitting and archiving documents, reducing bureaucracy and the time required to manage tax obligations.

Conclusions

The adoption of electronic invoicing and its declaration of acceptance, through the AADE's myDATA, is a strategic choice that offers significant advantages for businesses. From the reduction of statute of limitations to financial support and the improvement of procedures, businesses that invest in this new technology ensure their compliance with tax obligations in a simple and inexpensive way.

Implementing these changes is to the benefit of all businesses, as it enhances their efficiency, security and growth prospects in the market.