Regulatory compliance

Overview

Monite aims to help SMBs create invoices that comply with the local regulatory requirements. As part of this approach, invoices can only be issued by entities from countries for which Monite provides regulatory coverage.

Entities registered in countries other than those listed can create draft invoices, but will not be able to issue them (that is, move invoices to the "issued" status).

Supported countries

Monite Accounts Receivable API supports invoicing for entities from the following countries.

Countries marked with * are supported with some specifics. Follow the links for the details.

🇦🇴 Angola ^*
🇧🇪 Belgium
🇧🇼 Botswana
🇪🇪 Estonia
🇸🇿 Eswatini
🇫🇷 France ^*
🇩🇪 Germany
🇮🇪 Ireland
🇱🇸 Lesotho ^*
🇱🇷 Liberia ^*
🇲🇿 Mozambique ^*
🇳🇦 Namibia
🇳🇱 Netherlands ^*
🇿🇦 South Africa
🇪🇸 Spain ^*
🇦🇪 United Arab Emirates (UAE)
🇬🇧 United Kingdom (UK) ^*
🇿🇼 Zimbabwe ^*

Additional considerations

Angola

Angola

According to the law, invoices need to be issued in Portuguese in Angola. Monite does not support invoice localization yet.
In Angola, taxpayers with a turnover of 250000 USD or more are required to use e-invoicing. Monite does not support e-invoicing yet.

France

France

Users should specify their RCS number as their tax_id in the entity information.

Lesotho

Lesotho

When creating entities or counterparts, if they have a "Tax Identification Number", it should be specified under the tax_id.

Liberia

Liberia

The Liberian legislation requires to issue separate invoices for goods and services. As per the legislation requirements, users should not issue an invoice containing both goods and services.
In Libera the VAT system is not yet implemented. Instead, GST (Goods and Service Tax) is issued. Attention:
- For GST rates we are using vat_rate. We do not have an specific field mapped for GST rates.
- For company tax numbers, we are using vat_id.
Caveat: PDF invoices will show “VAT” instead of “GST”. The automatic conversion from "VAT" to "GST" will be handled in future releases.

Mozambique

Mozambique

According to the law, invoices must be issued in Portuguese in Mozambique. Monite does not support invoice localization yet.

Netherlands

Netherlands

Users that have a Dutch Business Register number (KVK) should specify it as their tax_id in the entity information.

Spain

Spain

We support mainland Spain (excluding Canary Islands, Ceuta, and Melilla). Taxpayers located in mainland Spain need to set up their VAT ID with type of "eu_vat".
Some Spanish taxpayers may be required to include an income tax withholding on their invoices for certain transactions. Use the withholding_tax_rate field in the invoice payload to specify the percentage of withholding.

The following is not supported:

VAT rates for the special retail scheme (Recargo de equivalencia).

UK

Monite supports invoicing for the following scenarios:

B2B (business-to-business) sales - both domestic and cross-border, including sales that fall under the Northern Ireland Protocol (see the notes below).

📘
Norther Ireland Protocol specifics
Sales of goods from Northern Ireland to EU member states fall under the Northern Ireland Protocol, which sets the rules for post-Brexit trade. Among other things, the NI Protocol requires that invoices for such sales display the seller VAT ID with the "XI" prefix instead of "GB".
Learn how to configure VAT IDs for UK entities that operate under the NI Protocol.

Zimbabwe

Zimbabwe

According to the Zimbabwean Tax Authorities, invoices should be sent via an official Fiscal device. If the invoice is not issued through a fiscal device, the counterpart will not have the right to claim input VAT. This is not supported by Monite yet.