Return to mapElectronic Invoicing in Panama
Electronic invoicing in Panama was introduced in 2016 with the creation of the Panama Electronic Invoicing System/ Sistema de Facturación Electrónica de Panamá (SFEP). In 2021, a voluntary adoption phase began, culminating in January 2022, marking the beginning of mandatory implementation for various taxpayer groups.
Characteristics of Electronic Invoicing in Panama
The regulatory authority overseeing the electronic invoicing system in Panama is the General Directorate of Revenue/ Dirección General de Ingresos (DGI), which operates under the Ministry of Economy and Finance/Ministerio de Economía y Finanzas (MEF).
One key aspect of electronic invoicing in Panama is that all invoices must be pre-validated by a Authorized Certification Provider / Proveedor Autorizado Calificado (PAC) before being sent to the recipients, following a pre-authorization model.
Mandatory Use
The DGI has progressively expanded the reach of the Panama Electronic Invoicing System (SFEP), incorporating an increasing number of taxpayers.
Since January 2022, it became mandatory that all newly established companies are required to adopt electronic invoicing as the sole valid method for issuing tax receipts.
Invoice Format
Electronic invoices in Panama must comply with the XML format, an internationally recognized standard that facilitates interoperability between systems and the exchange of data in a structured and secure manner.
This format is regulated by Law 51 of July 22, 2008, which establishes the legal framework for the creation, use, and storage of electronic documents and digital signatures.
Electronic Signature
According to Law 51 of July 22, 2008 (Articles 2 and 74), the qualified electronic signature of the issuer guarantees the legal validity of electronic invoices. This signature must be backed by a qualified electronic certificate issued by a certification service provider registered with the National Electronic Signature Directorate of the Public Registry of Panama/la Dirección Nacional de Firma Electrónica del Registro Público de Panamá.
Invoice Archiving
Both issuers and recipients are required to archive electronic invoices in compliance with Panama’s tax legislation.
Under current regulations, invoices must be retained for a minimum of five years, aligning with the statute of limitations for tax obligations related to the Transfer of Movable Goods and Services Tax /Impuesto de Transferencia de Bienes Muebles y Servicios (ITBMS), equivalent to VAT in other countries.
Administrative Requirements
The process of enrolling in Panama’s electronic invoicing system is relatively straightforward and accessible to taxpayers. To start issuing electronic invoices, companies must:
- Obtain access credentials: Taxpayers must secure credentials to log into the e-Tax 2.0 platform, the DGI’s official portal.
- Register on the DGI platform: Taxpayers must register in the electronic invoice section of the DGI’s website and complete the required information to enroll inthe system.
- Select an authorized PAC: Businesses must work with an Authorized Certification Provider (PAC), responsible for issuing, transmitting, and archiving electronic invoices in compliance with regulations.
This process enables a smooth transition to electronic invoicing, ensuring legal compliance while streamlining financial management for businesses.
Fiscal Control
To ensure the traceability and authenticity of electronic invoices, regulations recommend the use of a Unique Electronic Invoice Code/Código Único de Factura Electrónica (CUFE).
The CUFE serves as a unique identifier that authenticates the validity of the invoice, facilitates tax audits by the DGI, and prevents duplication of documents.
Unlike in other countries, Panama does not require the issuance of numbering ranges by the DGI, offering taxpayers greater flexibility in their tax operations.
EDICOM PAC Panama, Authorized Certification Provider
On November 14, 2022, EDICOM was accredited as an Authorized Certification Provider (PAC) by the General Directorate of Revenue (DGI) of Panama.
EDICOM is one of the leading PACs in the market, recognized for its expertise, service quality, and ability to provide international electronic invoicing solutions at an international level.
The Role of a PAC in Panama | Authorized Certification Provider
An Authorized Certification Provider (PAC) is an entity endorsed by the DGI, responsible for authorizing the use of electronic invoices for taxpayers implementing this system through its services.
A PAC’s primary function is to verify that each electronic document complies with current tax regulations, ensuring its authenticity and validity before it can be officially used.
Main Responsibilities of a PAC
An Authorized Certification Provider (PAC) must guarantee an efficient and secure service for taxpayers, fulfilling the following responsibilities:
- Electronic Document Management Platform: The PAC must maintain a robust platform for receiving, validating, and sending electronic documents. This system should ensure efficient transaction management, secure archiving and queries, guaranteeing fast response times to avoid disruptions in the invoicing process.
- Validation and Authorization of Electronic Documents: The PAC verifies that each document meets fiscal requirements set by the DGI, including: correct data format, proper tax calculations, and validation of the issuer’s and recipient’s tax details. Once a document is approved, the PAC authorizes its use, signing it with a digital certificate to ensure authenticity.
- Management of Invalid Documents: If a document fails validation, the PAC must notify the issuer with details about the rejection, which may include: Incorrect or incomplete fields, Calculation errors, Missing mandatory information. In such cases, the issuer must correct and resubmit the invoice following the specified guidelines.
- Secure archiving of the information: The PAC must guarantee the confidentiality and protection of the information provided by the taxpayer and the DGI while ensuring compliance with applicable regulations.
- Adaptation to Regulatory Changes: PACs must implement the necessary updates in the validation processes according to modifications introduced by the DGI in the Technical Sheet, within the deadlines established by the regulatory entity.
Frequently Asked Questions
Below are some of the most frequently asked questions about the electronic invoicing system in Mexico.
What is a Qualified Authorized Provider (PAC)?
A Qualified Authorized Provider (PAC) in Panama is a company or individual authorized by the General Directorate of Revenues (DGI) to provide authorization services for the use of Electronic Invoicing by taxpayers.
Who can authorize your electronic documents (credit note, debit note, and invoice)?
According to Decree No. 766, which indicates that all companies that join the electronic invoicing model must hire the services of at least one Qualified Authorized Provider (PAC) to validate and authorize electronic documents.
What guarantees the legal validity of the Electronic Invoice?
According to Law 51 of July 22, 2008, articles 2 and 74, the electronic invoice will be guaranteed through the qualified electronic signature of the issuer, backed by a qualified electronic certificate issued by a certification services provider registered with the National Electronic Signature Directorate of the Public Registry of Panama.
What is the treatment of airline tickets in the Electronic Invoice model, knowing that in many cases the tickets do not have the fiscal data of the clients?
In the case of airline tickets, they have a special treatment, since in order to issue electronic invoices, the passenger's information must be supplemented by some means, in case they request the invoice, or otherwise a final consumer invoice must be issued.
Whose responsibility is it to store the XML, the issuer's or the PAC’s?
In Panama, the responsibility of storing the XML files of electronic invoices falls on both the issuer and the PAC (Authorized Certification Provider). Both parties must keep copies of the electronic invoices issued and received for a minimum period of 5 years.
How many items (articles) can be sent on an invoice?
Up to 1000 items (articles) can be sent on an invoice.
Do I need an electronic signature, even when working with a Qualified Authorized Provider?
Yes, it is necessary for the issuer to have their electronic signature certificate, remember that each company is responsible for the invoices they issue.
What is CUFE?
Its acronym stands for Unique Electronic Invoice Code, which is the number that identifies an invoice.
For a Panamanian company where all the income is not produced in Panama, that is to say that it does not invoice within the territory, is it obliged to use electronic invoicing?
According to Law 66 of 2019 of the Republic of Panama, all companies registered in the country are required to issue electronic invoices, even if their income comes from non-Panamanian sources and they do not issue invoices within the territory. The obligation of electronic invoicing was established with the aim of modernizing the country's tax system and improving efficiency and transparency in business management.
Therefore, if the Panamanian company in question is registered in the country, it must comply with the obligation to issue electronic invoices, even if all its income comes from non-Panamanian sources.
For the consumption of the DGI's WebService is a special permit required?
The use of the DGI WebService is not public for the issuance of electronic invoices, so you must be certified as a PAC to be able to use it.
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