Return to mapElectronic invoicing and e-transport in Paraguay
Electronic invoicing in Paraguay is implemented through the Integrated National Electronic Invoicing System (SIFEN), administered by the Undersecretary of State for Taxation (SET). This system replaces paper invoices with Electronic Tax Documents (DTE) with full legal validity. In addition, the Electronic Remittance Advice (NRE) supports the transfer of goods within the national territory, ensuring logistical traceability and fiscal transparency.
Characteristics of Electronic Invoicing in Paraguay
The SIFEN (Integrated National Electronic Invoicing System), managed by the Undersecretary of State for Taxation (SET), implements a digital system that replaces paper invoices with Electronic Tax Documents (DTE) with full legal, fiscal, and accounting validity. These documents are managed through the e-kuatia platform, which processes issuance, validation, shipment, and archiving, guaranteeing security and traceability in each transaction.
The system involves three main actors: SET, which regulates and validates the documents; the electronic issuer, who generates and submits them; and the recipient, which receives and manages them in accordance with the regulations. For non-electronic recipients, the legislation contemplates use of the KuDE, a graphic representation of the invoice.
Mandatory Use
Electronic invoicing in Paraguay is mandatory for different groups of taxpayers defined by the SET and the National Tax Revenue Directorate (DNIT). As of 2022, participants in the pilot plan and the voluntary phase were required to issue electronic documents. In 2026, the mandatory use will apply to government suppliers, who must issue all their invoices electronically, with the exception of the virtual certificate of withholding.
Invoice Format
Invoices are issued in standardized XML format and are differentiated as follows:
- DE (Electronic Document): generated by the authorized issuer, pending validation.
- DTE (Electronic Tax Document): approved version of the DE after passing the SIFEN validations, with full legal, accounting, and fiscal validity.
Key documents include: Electronic Invoice, Self Invoice, Export Invoice, Credit and Debit Notes, Electronic Cash Receipt, Certificate of Withholding, and Electronic Remittance Advice.
Electronic Signature
Documents must be digitally signed with a certificate issued by an authorized Certification Services Provider, which ensures authenticity, integrity, and non-repudiation.
Invoice Archiving
DTEs must be archived in electronic format for a minimum legal term of five (5) years, guaranteeing integrity, accessibility, and traceability.
Administrative Requirements
To operate in SIFEN, taxpayers must:
- To be authorized as electronic invoice issuers by SET.
- To have a digital certificate that includes the Single Taxpayer Registry (RUC).
- Comply with tests in the SET certification environment.
- Manage the stamping of the DTEs and the Taxpayer Security Code (CSC) to generate QR codes in the KuDE (simplified graphic representation of the DTE).
Fiscal control
There are two validation methods:
- Pre-validation: the DTE is approved by SET before being submitted to the recipient, generating a Control Code (CDC) and a QR for the KuDE.
- Post-validation: the DE is delivered and must be sent to the SET within 72 hours for validation.
Print format
When a recipient is not electronic, or for shipments of goods, the KuDE or standardized graphic representation of the DTE must be issued, in paper or digital format, with a QR code for verification.
e-Invoicing Workflow in Paraguay
The electronic invoicing process in Paraguay covers the phases of issuing, validating, control, dispatch and storage of DTEs, ensuring tax compliance and legal validity.
Issuance and validation
The transaction data is extracted from the taxpayer's ERP and generated in XML according to the SET standard. The system validates that the required fields are complete and correct.
Signature and fiscal control
Each document is digitally signed and submitted to SIFEN. Depending on the case, pre- or post-validation applies. With pre-validation, SET assigns a Control Code (CDC) that converts the document into a DTE.
Shipment to destination
Once validated, the DTE is sent to the electronic recipient via secure communication channels. In case of non-electronic recipients, the KuDE is sent in paper or digital format.
Electronic invoice archiving
Sender and recipient must keep the DTE for five (5) years, ensuring integrity and accessibility for audits or SET verifications.
Frequently Asked Questions about Electronic Invoicing in Paraguay
Below are some of the most frequently asked questions about the electronic invoicing system in Paraguay.
What is an Electronic Document (DE)?
This is the receipt generated by the electronic invoicing system that is digitally signed but still pending validation by SET.
What is an Electronic Tax Document (DTE)?
It is the DE once validated and approved by SIFEN. It is only legally and fiscally valid in situation.
What documents can be issued electronically?
Among others: Electronic Invoice, Self Invoice, Credit and Debit Notes, Remittance Advice, Electronic Cash Receipt, Certificate of Withholding, and Export Invoice.
What is the KuDE?
It is the standardized graphic representation of the DTE, mandatory for the transfer of goods or when the recipient is not electronic. It includes a QR code to verify its validity.
Can an approved DTE be canceled?
Yes, within 48 hours after approval for invoices, and up to 168 hours for other documents. Once canceled, the DTE has no legal or fiscal effect.
What is E-kuatia'i?
It is SET's free solution for taxpayers with low invoicing volume, which includes issuing, sending, and storing DTEs.
For how long should DTEs be archived?
For a minimum of five (5) years, guaranteeing their integrity and accessibility for tax controls.
What is a SIFEN?
The Integrated National Electronic Invoicing System (SIFEN) is the platform of the Paraguayan Tax Administration that enables electronic issuance, validation, approval, and consultation of Electronic Tax Documents (DTE).
What happens if a DE is rejected by SIFEN?
The system reports the error and the issuer can correct it and resend it until validation is obtained.
What is a digital signature?
It is a security mechanism based on a digital certificate issued by an authorized provider. It guarantees the authenticity of the issuer, the integrity of the document, and prevents it from being modified or repudiated, granting full legal validity to DTEs.
What is the difference between a virtual invoice and an electronic invoice?
A virtual invoice is the receipt issued by a taxpayer through the Marangatu system, without a digital signature or validation in SIFEN. On the other hand, an electronic invoice is an Electronic Document (DE) structured in XML format that has been digitally signed.
Characteristics of the Electronic Remittance Advice (NRE) in Paraguay
The Electronic Remittance Advice (NRE) is the Electronic Tax Document that records the transfer of goods within Paraguay, whether for sales, consignments, returns, internal transfers, services, or other reasons. It is regulated by the SET and is managed in the Integrated National Electronic Invoicing System (SIFEN), which validates and approves the documents. The NRE does not record prices or taxes: its purpose is to accredit physical movement, ensure logistical traceability, and support tax compliance.
It must be issued prior to the start of the shipment and its KuDE (graphic representation with QR code) must accompany the cargo during the entire journey. It can be linked to one or several invoices (electronic or paper), and conversely, an invoice can reference one or several NREs, depending on the transaction.
Mandatory Use
The NRE is mandatory whenever there is a transfer of goods within the country, whether or not there is an associated sale or purchase. Applies to owners/submitters, shippers (where applicable), and operations requiring documentation of the physical movement of goods.
Mandatory information
The Electronic Remittance Advice is generated in XML format and requires prior validation in the SIFEN system. To be valid, the NRE must contain:
- Issuer's data (RUC, company name, establishment of origin).
- Recipient identification and destination address.
- Detailed description of the goods: quantity, unit of measure, approximate weight and relevant characteristics.
- Reason for transfer (sale, return, consignment, internal transfer, etc.).
- Shipper, vehicle and driver data, when applicable.
- Date and time of the start of the transfer, as well as the maximum period of validity of the document.
- Reference to associated electronic or physical invoices.
Frequently Asked Questions about the Electronic Remittance Advice (NRE) in Paraguay
Below are some of the most frequently asked questions about the NRE in Paraguay.
What is the NRE?
It is the DTE that supports the transfer of goods within Paraguay, documenting origin, destination, goods, and transportation. It does not replace the invoice nor does it confirm or prove prices/taxes.
When should it be issued?
Always before initiating the physical transfer of goods, whether or not there is a sale. Applies to internal transfers, consignments, returns, services with materials, samples/customs, and movements related to imports/exports.
Is the KuDE mandatory in transportation?
Yes. The KuDE of the NRE must accompany the merchandise during the whole journey and allows for verification via the QR code.
Can an NRE be linked to multiple invoices?
Yes. The NRE can be linked to several invoices and, conversely, an invoice can reference one or several NREs, depending on the transaction.
What is the deadline for submitting the NRE to SIFEN?
In general, up to 72 hours from the digital signature of the DE. It must be issued prior to the transfer; transmission after the deadline is considered untimely.
What happens if SIFEN rejects the NRE?
The system reports the error code and message. The sender can correct and resend the DE, reusing the CDC if the data structure does not change. If there was no delivery, you must disable the number.
What is the minimum information that must be included in the NRE?
Sender/recipient (RUC/ID), origin and destination, list of goods (items, quantities, units; ideally: lot/serial if applicable), shipper/vehicle (if a third party is involved), start date/time, and references (invoice, purchase order, order).
How should changes in the transfer be documented?
The transport event (change of driver/vehicle/company, or change in quantities), linked to the corresponding NRE or FE, is recorded.
Does the NRE support fiscal credit/debit?
The NRE does not itself confirm taxes; it supports the transfer. The fiscal effects result from the invoice and other receipts. The KuDE is valid if it matches the DTE approved in SIFEN.
For how long should documents be archived?
For the statute of limitations for the tax. The DTEs, events, and, for non-electronic recipients, the KuDE (physical or digital) must be archived.
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