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Belarus introduces obligatory electronic VAT invoicing as of July 2016

Upcoming changes and the introduction of EVIs

Starting from 1 July 2016, Belarus will require the electronic invoicing of value added tax (VAT) as introduced by the Law of the Republic of Belarus N 343-3 dated 30 December 2015, About introduction of amendments and additions to some laws of the Republic of Belarus with respect to the business activity and taxation. As of this date, it will be insufficient to simply collect supporting documents in order to claim VAT deductions. In addition to the supporting documents, all Belarus VAT payers will be required to issue electronic VAT invoices (EVIs) for each VATable transaction (the sale of goods, or the provision of work or services).

The new rules for VAT deductions differ substantially from the existing rules as no VAT invoice is required currently and there is no obligation to prove VAT deductions electronically.

Current documentary proof of VAT deductions

In order to deduct VAT in Belarus the VAT payer collects the supporting documents, which may be:

  • Issued in both paper form and electronically
  • Developed by the taxpayer but must comply with the requirements established in the tax law

New procedure for issuing EVIs

Starting from 1 July 2016, the EVIs must be issued electronically in .xml format via the Portal of the Ministry for Taxes and Levies of the Republic of Belarus (the Portal).

The deadline for issuing an EVI is no later than the fifth day of the month following the month when the VATable transaction took place.

There are two ways to meet this requirement:

  • Create EVIs in the Portal directly
  • Create the EVIs in .xml format and upload them to the Portal

The Ministry for Taxes and Levies of the Republic of Belarus has already established:

  • The preliminary format of EVIs
  • Guidelines on how to use the Portal

Potential challenges with preparing EVIs

  • The large volume of data to be reflected in each EVI makes the process complicated
  • The manual creation of EVIs threatens compliance with deadline
  • The large number of counterparties makes the process cumbersome

EYG no. 00509-161Gbl

Download this Tax Alert as a PDF file

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