Return to mapElectronic invoicing and e-transport in Ecuador
Electronic invoicing in Ecuador is managed by the Internal Revenue Service (SRI as per the Spanish acronym) and replaces paper records with digital documents with full legal validity, facilitating invoice issuing, validation, and storage. In addition, Remittance Advice forms support the transfer of goods within the country, guaranteeing the traceability of transaction and fiscal transparency.
Characteristics of electronic invoicing in Ecuador
Electronic invoicing in Ecuador is part of the electronic records system. Promoted by the SRI since 2012, it has become fully established through resolutions that defined progressive incorporation timelines. Currently, all taxpayers are required to issue electronic invoices, which ensures greater transparency in commercial transactions.
The system contemplates different types of electronic documents (invoices, credit and debit notes, certificates of withholding, remittance advices, among others), which must be issued in XML format, digitally signed, and validated with SRI before being sent to the customer. In addition, each receipt has a printed copy of the electronic document (RIDE) that can be handed over when a recipient does not accept the electronic format.
Mandatory Use
The SRI established a progressive timeline for integration of the system that concluded in 2022, reaching 100% of taxpayers. Currently, electronic invoicing is mandatory for all individuals and legal entities that carry out taxable commercial transactions, including public and private entities and government suppliers.
Invoice Format
Electronic invoices are issued in XML format, as per the specifications established by the SRI, and must be sent for prior validation.
Electronic Signature
E-invoicing issuance requires an electronic signature in XAdES-BES format, which guarantees the authenticity and integrity of the documents.
Invoice Archiving
Electronic invoices must be archived for seven (7) years by both the issuer and recipient, guaranteeing their availability in the event of audits or legal requirements.
Administrative Requirements
To issue electronic invoices, the following is required:
- A valid electronic signature certificate.
- Register a debit agreement and access to the online SRI portal.
- Authorization to issue electronic invoices.
- An invoicing system that complies with SRI technical guidelines.
Fiscal control
The invoice must be validated by SRI before it is sent to the recipient. The agency assigns an authorization number that is incorporated into the document and recorded along with the RIDE.
Purchase/sales summary
Regulations require the electronic declaration of the settlement of purchases of goods and services rendered, which serves as an additional accounting supporting documentation.
e-Invoicing workflow in Ecuador
The process of issuing electronic invoices in Ecuador follows the following phases:
Issuance of invoices
Transaction data is generated in the taxpayer's management system or ERP and converted to XML format in accordance with SRI regulations.
Validation and electronic signature
Before being sent to SRI, the invoices in XML format are validated in accordance with technical regulations and signed with an electronic certificate according to XAdES_BES standard.
Submission and authorization
The invoice is sent to SRI via Web Services for validation. The agency returns the authorization within 24 hours. At the same time, the printed copy (RIDE) is generated and sent to the customer together with the XML copy.
Invoice Archiving
Authorized invoices are integrated into the taxpayer's system and must be archived electronically for seven (7) years, together with the SRI authorization codes.
Frequently Asked Questions about Electronic Invoicing in Ecuador
Below are some of the most frequently asked questions about the electronic invoicing system in Ecuador.
Which invoices must be issued in electronic format?
Invoices, settlements of purchase, credit and debit notes, certificates of withholding, and remittance advices, among others defined by SRI.
How is authorization to issue electronic invoices obtained?
The process starts in a test environment and then in production. Only in the latter case are invoices valid for tax purposes.
What options are available for issuing electronic invoices?
Taxpayers can use the free desktop invoicing system, the online SRI portal, or in-house invoicing solutions.
What is a RIDE?
It is the printed copy of the electronic invoice, which accompanies the XML file and must comply with the technical requirements defined by the SRI.
How are electronic invoices canceled?
Through a credit note or the online SRI system, within the deadlines established by the regulations.
What is the deadline for issuing a certificate of withholding?
It must be issued within five days of when the sales receipt was issued.
Can I issue electronic invoices linked to physical invoices?
Yes, it is possible to issue electronic credit or debit notes or certificates of withholding related to physical invoices.
For how long are invoices archived?
All invoices must be archived for a minimum period of seven (7) years, in electronic formats that guarantee integrity and accessibility.
Characteristics of Remittance Advice in Ecuador
Remittance advice in Ecuador is a tax document regulated by the Internal Revenue Service (SRI as per the Spanish acronym) that supports the legality of the transfer of goods within the national territory. It acts as a complementary record to the electronic invoice, certifying the origin of the goods and ensuring compliance with tax obligations.
It must be issued before starting any shipment and the document must accompany the goods during the entire journey. It includes detailed information on the sender, consignee, transporter, vehicle and goods moved, which guarantees the traceability of transactions, reinforces the legal security of transactions, and prevents penalties or product withholding in tax controls.
Mandatory Use
Issuing Remittance Advice is mandatory for all companies and businesses that move goods within Ecuador, whether via proprietary or contracted transportation. It must be issued in cases of sale, consignment, returns, repairs, internal transfers between warehouses, or in import and export operations. Only taxpayers under simplified regimes, such as RIMPE (Popular Businesses), are exempt from this obligation.
Mandatory information
Remittance Advice must contain, at a minimum:
- Issuer's data: RUC (tax identification number), company name, and establishment.
- Recipient’s data: name, identification, and address.
- Address of origin and destination of the goods.
- Start and end date of the transfer.
- Detailed description of the goods (type, quantity, weight, value).
- Vehicle and driver identification.
- Reason for transfer.
- Authorization number granted by the SRI.
Frequently asked questions about Remittance Advice in Ecuador
Below are some of the most frequently asked questions about Remittance Advice in Ecuador.
What is Remittance Advice in Ecuador?
It is a tax document regulated by the SRI that supports the legal transfer of goods within national territory, guaranteeing traceability from origin to final destination.
When should Remittance Advice be issued?
It must be issued whenever goods are moved within the country, whether for sale, consignment, import, export, repairs, returns, or internal movements between establishments of the same company.
Who is require to issue it?
The owners of the merchandise, shippers that move goods without the sender, companies, individuals and undivided estates with accounting, as well as importers and exporters.
What happens if I do not issue Remittance Advice?
Non-compliance may result in economic sanctions by the SRI and withholding of the merchandise by the control authorities, in addition to impact on the formality of the commercial operation.
For how long is Remittance Advice valid?
The validity depends on the distance of the transfer. In all cases, the maximum validity date must be stated on the document and cover the entire journey until final delivery of the goods.
How does it relate to the electronic invoice?
Remittance Advice is a complementary document that usually accompanies the electronic invoice in the case of sales. Together, they ensure tax compliance and facilitate the traceability of the commercial transaction.
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