How does e-Invoicing in Costa Rica work?

How does e-Invoicing in Costa Rica work?

05/03/2018

 

In Costa Rica, electronic invoicing is done through the Ministry of Finance, which receives, validates and issues invoice receipts for final recipients. All electronic receipts and associated documents must have an acceptance message from the Ministry of Finance otherwise they cannot be used as a means of supporting tax credits or as deductible expenses.

In addition, several technical requirements exist. To be able to issue electronic receipts, the taxpayers must register with the DGT and have a security mechanism to the sign the electronic vouchers to guarantee their integrity and authenticity. It’s necessary that:

  • Invoices are signed electronically in order to guarantee integrity and authenticity. The invoice must be digitally signed from a certificate issued by an international certification authority.
  • Invoices are stored. Storage is mandatory for the sender and receiver for a period of five years.

Electronic documents in the electronic invoice in Costa Rica

In Costa Rica, commercial transactions comprise a total of five documents or messages that are part of the exchange:

  • Invoice: Backs the sale of goods and the provision of services.
  • Credit note and Debit note: Allow canceling or modifying the accounting effects of the electronic invoice or electronic receipt, not altering the information of the source document.
  • Electronic ticket: Electronic invoice that backs the sale of goods and services, authorized only for transactions with final consumers.
  • Acknowledgments of acceptance or rejection of documents.

The flow works the following way:

  • The taxpayer sends an XML of the invoice to the ministry of finance for validation as well as for a message acknowledging that it was received.
  • The tax administration receives the invoice and has up to 3 hours to validate and send an acknowledgment of acceptance or rejection. This message will accompany the invoice once it is sent to the recipient.
  • The recipient must accept or reject the invoice with a new message.

In Costa Rica’s electronic invoicing flow there are two key messages that travel along with the electronic invoices.

  • Message from the Ministry of Finance: A message given by the Ministry of Finance in response to the invoice’s electronic issuer indicating its approval or rejection. Validations by the ministry of finance will take place at structural levels and will also involve semantic validations (amounts, addresses, etc.)
  • Received Message: A message sent by the invoice’s receiver to the Ministry of Finance accepting it, partially accepting it or rejecting it. All electronic receipts and associated documents must have an acceptance message from the Ministry of Finance. Otherwise they cannot be used as a means of backing tax credits or deductible expenses.

Automate the issuance and reception of electronic invoices with any interlocutor

Given the large numbers of messages that must be handled in a short time, EDICOM proposes a solution capable of establishing EDI connections with interlocutors. Through a portal of suppliers, any type of documentation can be received from the electronic issuers. This portal is designed for those who receive electronic invoices but don’t have an integrated EDI solution.

The electronic sender-receiver must adhere to requirements while creating the invoice such as the numeric key and the QR code and must send it in XML format to the Ministry of Finance for validation.

Through the portal, the XML invoice and the confirmation message from the Ministry of Finance are sent to the receiver. The invoice must be accepted or rejected by the recipient, an action that can be verified from the same portal. The receiver will upload the electronic invoice to the portal and send the recipient’s message to the Ministry of Finance. The portal will also send the recipient’s message to the invoice’s issuer.

If you want to know more about this solution, contact our sales team to request a live demonstration of it.

If you want more details about how the Electronic Invoice operates in Costa Rica, download this free document: Expert Chat: Costa Rica’s Electronic Invoice.

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