Electronic Invoicing in Paraguay: Integrated System of National Electronic Invoicing (SIFEN)

Electronic Invoicing in Paraguay: Integrated System of National Electronic Invoicing (SIFEN)

05/03/2019

The Integrated System of National Electronic Invoicing (SIFEN) establishes Paraguay’s new tax regime. SIFEN is the system, which issues, receives, validates, archives and arranges the consultation services for Electronic Tax Documents or DTEs.

The implementation of the Electronic Invoice in Paraguay, planned by the State’s Undersecretary for Taxation (SET), seeks to improve tax collection and curb tax fraud in the country. The current Electronic Billing project in Paraguay began in 2017.

Planned in a staggered manner, it’s part of a voluntary phase to achieve progressive use by companies and taxpayers. The Paraguayan government will authorize up to 100 companies to make electronic invoicing stations voluntarily during 2019.

Decree Nº 7795 of the Ministry of Finance includes SIFEN and regulates the use of the following electronic documents:

  • Electronic sales receipts
    • Electronic invoices
    • Electronic import invoices
    • Electronic export invoices
    • Electronic auto invoices
  • Electronic supplementary documents
    • Electronic credit notes
    • Electronic debit notes
  • Electronic submission notes
  • Documents that prove electronic retention

To use electronic invoicing in Paraguay, one must be approved by the tax administration as an electronic biller.

To do this, it is necessary to comply with some technical requirements:

  • Acquire the electronic signature of an authorized Certification Services Provider.
  • Possess an adequate eFactura system that allows for emission, reception and conservation.
  • Pass a process of testing and technological homologation.
  • Make the request for stamping and authorization through the tax management system (Marangatu).

To guarantee authority and authenticity, the digital signature and the control code must be included on the Electronic Document (DE).

How does Electronic Invoicing Function in Paraguay?

  • Electronic invoices are generated in XML format and the stamp on each document must be registered.
  • The digital signature and the control code must be included on each electronic document to guarantee its authenticity and integrity.
  • The electronic biller must send the electronic documents to the tax administration for validation.
  • Once the invoice is received, SIFEN will verify its validity. In the event that it meets the requirements, it will acquire the value of an Electronic Tax Document, and only thereafter shall be valid for, in each case, supporting the fiscal credit and debit of the VAT tax, as well as the sale of goods and services and the costs and expenses of income taxes.
  • The electronic invoice has legal validity once it is validated and authorized by SET.
  • The electronic biller is obligated to consult the result of the verification process through the web service provided by the Tax Administration.
  • When the buyer is an electronic receiver, the biller must send the DTEs by web service, email, data messaging or put them in an information system to be downloaded. At the same time, the receiver must show proof of acceptance or rejection with the DTEs received, indicating in the latter case the reason.
  • When the buyer is a non-electronic receiver, the biller must submit a graphic representation of the documents in physical format or send them in a digitalized form by email or make them available for download.
  • The DTEs must be conserved therefore guaranteeing their confidentiality, integrity, accessibility, and subsequent consultation.

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