e-facturation Finance Law to introduce centralised e-invoicing platform
The East African island state of Madagascar is set to become the latest country to mandate the use of centralised e-invoicing.
The latest Finance Law changes include the introduction of an e-facturation platform to collect structured VAT invoices. The aim is to secure existing tax receipts, eliminate fraud on missing transactions and reduce the costs of compliance for both tax payers and the Direction Générale des Impôts.
No set date for implementation has been provided; but 2025 likely.
Digitalising taxes
The country has been undertaking a range of digitalisation projects for tax compliance, including:
- A new e-VAT reporting platform
- Improving and securing tax revenues through the use of electronic declaration and telepayment platforms. Recently, the use of the “e-balance sheet” tele-transmission module for financial statements has also made it possible to effectively combat tax fraud;
- Imposing VAT on digital services;
- Using digital tools to strengthen the resilience of tax revenues and recover 97.48% of annual forecasts despite the health and economic crisis;
- Gradually expanding to the informal economy through the use of mobile phone payment platforms for synthetic taxes.
