Question of the day

What do you need to know before you fill in the electronic tax invoice? You will find the answer to this question in this material, but to begin with, please note that the e-Invoice system provides for two life cycles of the tax invoice – the long cycle and the short cycle, and the supplier can issue the electronic tax invoice by choosing only one of these options. Long life cycle assumes that the electronic tax invoice will acquire the status of ‘finished’ once it has been signed with a digital signature by the Buyer; and short life cycle assumes that the electronic tax invoice will acquire the status of ‘finished’ after it has been signed with the Supplier’s second signature.

In accordance with the Regulation on the automated information system for the creation and movement of electronic tax invoices ‘e-Invoice’, approved by Order of the State Tax Service No 317 of 26.6.2020several scenarios can be performed when generating the tax invoice under SIA ‘e-Invoice’, as follows:

I. the tax invoice is generated in the context of the supply of goods/services and both participants in the transaction are users of SIA ‘e-Invoice’ – both the ‘long life cycle’ of the tax invoice and the ‘short life cycle’ of the tax invoice can be used;

II. the tax invoice is generated in the context of the supply of goods/services, but the ‘Buyer’ has not indicated an agreement to receive tax invoices in electronic form in relation to that ‘Supplier’ – the ‘Short Cycle’ is to be used;

III. the tax invoice is generated in the context of the supply of goods/services, but the ‘Buyer’ opted for the option of receiving tax invoices in electronic form in relation to the ‘Supplier’ only through the ‘long cycle’ of the respective tax invoice – the ‘long cycle’ is to be used;

IV. the tax invoice is generated in the context of the supply of goods/services, but the ‘Buyer’ is not recorded in SIA ‘e-Invoice’ – the ‘short cycle’ is to be used.

The selection of the life cycle of the tax invoice can be done by clicking on the ‘Sign’ option or by applying their electronic signature (s).

Change in the life cycle of the tax invoice

In accordance with point 141 of the Regulation on automated information system for the creation and movement of electronic tax invoices ‘e-Invoice’notes that the ‘Supplier’ and ‘Buyer’ may change the life cycle of the tax invoice, according to the following scenarios:

a) For the tax invoice issued through the ‘long cycle’, from the compartment of the Supplier ‘Dispatched to the Buyer’ and the compartment of the Buyer ‘For Acceptance’, both the Supplier and the Buyer may opt for the option of changing the cycle of the tax invoice from the ‘long cycle’ to the ‘short cycle’. After coordination of the tax invoice by the ‘Buyer’, with its transfer to the compartment of the Supplier ‘On Signature of the Purchaser’ and to the compartment of the Buyer ‘For Signing’, modification of the cycle by the Supplier will only be possible once the Buyer has given its acceptance.

b) For the tax invoice issued in the ‘short cycle’, from the ‘finished’ compartment, both the Supplier and the Buyer may opt to change the tax invoice cycle from the ‘short cycle’ to the ‘long cycle’ only after giving the other party to the transaction’s acceptance. When changing the tax invoice cycle from the ‘short cycle’ to the ‘long cycle’, it moves to the status ‘For Acceptance’ at the Buyer and the tax invoice loses its status as a ‘finished’ tax invoice, until it is also electronically signed by the Buyer.
Following the change in the life cycle of the tax invoice, the parties to the transaction will receive a notification through the ‘Personal Cabinet of the Taxpayer’ of the adjustment made, as of 1.3.2021.

Please note point 141 was introduced by OSFS586 of 26.11.20 and entered into force on 1.1.2021. However, in SIA e-Invoice at the time no life cycle change possible of the electronic tax invoice in the manner described in this point. Respectively, if it is necessary to change the life cycle of the tax invoice, the only way is to carry out the procedure for cancelling the tax invoice. The procedure for cancelling the tax invoice can only be carried out by the ‘Supplier’ taxpayer who issued (created) the tax invoice.

Original and copies of the electronic tax invoice

If the ‘Long Cycle’ of the tax invoice is used, electronic tax invoices are filled in, signed, sent and received via SIA ‘e-Invoice’. The original of the tax invoice issued in the long cycle shall be deemed to be the electronic document and the paper copies of that tax invoice shall be deemed to be copies.

When using the ‘Short Cycle’ of the life of the tax invoice, where in SIA ‘e-Invoice’ only the ‘Supplier’ is registered, and where other participants are registered in the system but have not indicated their acceptance to receive tax invoices in electronic form in relation to that ‘Supplier’, the tax invoice will be created and signed in electronic form by the ‘Supplier’, after which the latter will print it on paper, sign it with a handwritten signature and send it to the other parties (Carrier, Buyer) for acceptance and handwritten signature. In the case of the supply of services, the handwritten signature on the supplier’s copy shall not be required. The original of the tax invoice issued in the ‘short cycle’ is deemed to be the document printed on paper, which will bear the handwritten signature of the ‘Supplier’, who signed electronically to obtain the series and number of the tax invoice.

Signature and affixing of the stamp

The electronic tax invoice, generated, electronically signed and sent via the ‘Long Cycle’ by the Supplier via SIA ‘e-Invoice’, subsequently printed for the transport of the goods to their destination by the Supplier’s own transport, is not required to be signed by hand and stamped with the Supplier’s stamp on the paper medium of the document.

In accordance with point 13 of Order No 118 of the Ministry of Finance of 28.8.2017, when providing the services, the signature and stamp of the beneficiary on the copy of the supplier’s tax invoice, on the basis of which the revenues are recorded, is not mandatory.

On the copy of the beneficiary’s tax invoice, on delivery of the services, on the basis of which the costs and expenses are recorded, the signature of the person responsible and, where appropriate, the stamp of that person shall be compulsory.

Therefore, when documenting the services, the taxpayer is to opt for the ‘Short Cycle’ and then print the tax invoice in paper format after signing it.

Source: contabilsef.md