E-invoicing is one of the most important tools to prevent fraud and tax evasion in Latin America. Invoicing regimes are mandatory in many countries, and in others, implementation is being phased in.
The transition has been steady, and many countries have enacted laws and regulations to promote the widespread use of electronic invoicing.
E-invoicing systems integrated with other business management software are becoming increasingly common in many countries.
This has made it an essential element in the digital transformation process in Latin American countries.
How has e-invoicing developed in Latin America?
Chile, Mexico, and Brazil have led the way, and now Costa Rica and Ecuador are catching up. In Mexico, the CFDI 4.0 is adapting to current needs, while in Costa Rica almost all taxpayers now use e-invoicing.
However, in Ecuador, the obligation was established in November 2022. Uruguay completed its calendar in December of the same year, and Peru postponed the sending of electronic invoices until January 2023.
Colombia implemented electronic payroll in 2021, while Panama has required electronic invoicing for public entities since July 2022. Additionally, Bolivia, El Salvador, Honduras, and the Dominican Republic have also adopted this trend.
What developments can we expect in 2024 for e-invoicing in Latin America?
Paraguay, the Dominican Republic, and Bolivia will lead the developments in e-invoicing in Latin America, as their authorities plan to include a greater number of taxpayer groups in their e-invoicing systems.
Electronic Invoicing in Paraguay
The National e-Invoicing System was implemented in 2018, with group 1 taxpayers participating. In 2022, the voluntary phase began for group 2 taxpayers.
In 2023, additional groups joined the e-Invoicing System, with group 3 joining in January, group 4 in April, group 5 in July, and group 6 in October.
The remaining groups are expected to join by 2024:
- Group 7 in January.
- Group 8 in April.
- Group 9 in June.
- Group 10 in October.
Electronic invoicing in Bolivia
The National Tax Service is responsible for implementing the electronic invoicing system in Bolivia since 2021. In that year, taxpayers in groups 1 and 2 were added. During 2023, taxpayers in group 3 adopted an assigned online invoicing modality.
The SIN has established the accession deadlines for group 4 (31 January), group 5 (29 February), and group 6 (31 March) for the year 2024.
Electronic invoicing in the Dominican Republic
Electronic invoices (e-CF) will be made mandatory by the General Law on Electronic Invoicing in the Dominican Republic 32-33. The General Directorate of Taxes will be responsible for its implementation.
The schedule for implementation is as follows:
- 15 January: Group 1.
- 15 March: Group 2.
- 15 May: Group 3.
Electronic invoicing in Brazil
NF3-e, also known as the electronic electricity bill, was adopted in Minas Gerais and Espírito Santo in June and October 2023, respectively. It will be implemented in Santa Catarina on 1 January 2024 and in São Paulo on 1 June 2024.
Additionally, the use of Nota Fiscal de Serviços Eletrônica (NFS-e) is mandatory for services provided by small taxpayers who are not incorporated into the NFS-e system.
Electronic invoicing in Uruguay
On 1 December, DGI Resolution No. 2548/023 was published, extending the deadline for taxpayers to implement an electronic invoicing system.
The following taxpayers must obtain the status of electronic issuer before 1 January 2025
- Taxpayers providing exclusively personal services on a self-employed basis.
- Taxpayers registered with the tax authority as of 31 July 2023 and registered between 1 August 2023 and 31 December 2024.
According to Resolution 2389/023, all remaining VAT-registered businesses must have adopted e-invoicing by 1 May.
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