Changes to the Electronic Invoice in LATAM Countries in 2018

Changes to the Electronic Invoice in LATAM Countries in 2018

13/12/2017

e-Invoicing is already present in many Latin American countries as the only accepted invoicing model. In countries like Mexico and Brazil, the electronic document is already used in 100% of commercial operations. In other countries like Chile, Argentina, Colombia, Peru, Costa Rica and Uruguay work is being done to fully implement it in the medium term.

Chile, Mexico and Brazil were pioneers in using the electronic invoice. In these countries, the model has become widespread and it’s now moving towards other tax compliance procedures such as electronic accounting and e-VAT processes. The goal is to facilitate these tasks for taxpayers and to reduce economic costs.

Changes to the electronic invoice in 2018

In Brazil, the electronic invoicing system is one of the most consolidated in the world. It’s the world’s largest power in issuing electronic tax documents through different invoicing models. In 2018 a new document called the EFD-REINF will be mandatory for the transmission of withholding taxes related to the provisions of services to SPED. On July 2nd, it will be mandatory to migrate to the new version (4.0) of NF-e. In January 2018, the validation of EAN codes included in the fiscal notes for CNAE group 324 was launched and progressively extended to other economic activities.

Chile will complete the last phase of migration for rural microenterprises in February 2018 both for the issuance and receipt of electronic invoices.

Colombia will be one of the leading countries in terms of the widespread implementation of electronic invoicing next year. So far, this model has had a low adoption rate. However, DIAN has launched a progressive adoption project. Those taxpayers that have already requested numbering ranges for electronic invoices according to decree 1929 must invoice electronically starting in January 2018. Additionally, the DIAN is working on a resolution which will require selected large taxpayers to start their electronic invoice project in 2018. In 2019, all Colombian companies must use this system.

2018 will be the year for electronic invoicing adoption in Costa Rica. The country is in the process of implementing the electronic invoice in phases. The DGI is responsible for notifying selected companies about the mandatory use of the e-invoice. In addition, the DGI has published compliance start dates for taxpayers who provide a professional service independently as a natural or legal person by sectors or activities. Click here to check the calendar for adopting the electronic invoice in 2018.

Ecuador has established the mandatory use of issuing electronic invoices for new taxpayers starting on January 1, 2018. These new e-invoice issuers must obtain an electronic certificate and request membership to the issuer system in order to register the SRI’s test and production environments. Also, Ecuador will implement a new electronic invoicing schema in 2018. On January 1, 2018, the current online model in which the SRI received invoices to authorize them will no longer be used. Only the offline model referred to in Resolution 0079 will be used. This offline model was previously used mainly for contingency situations.  With this model, the contingency codes are eliminated since it allows for the simultaneous transmission of electronic documents to the SRI and receiver. The objective is for authorization to take place immediately.

Mexico will continue making improvements to the CFDI. On January 1st the use of version 3.3 of the CFDI will be mandatory. Also on this date, the only authorized version of the foreign trade complement will be version 1.1. A new complement, the Electronic Payment Receipt, will be mandatory starting on April 1, 2018. Finally, starting on July 1, 2018 the approval process for cancelling electronic invoices will become effective.

In Paraguay, the electronic invoice project is expected to advance significantly in 2018 with the legislation coming into force. A pilot project will be set up with some voluntary companies and e-Invoicing regulation is expected to be communicated to taxpayers in mid-2018.

There are still some countries in South America that have yet to implement electronic invoicing. However, the truth is that changes produced in countries that use this system make LATAM one of the leading continents in the process of incorporating the global electronic invoice. It is foreseeable that the governments of the countries will follow suit over time.

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