January 1 is the next important date scheduled in the e-invoicing rollout schedule in Ecuador. Although this system has been operating on an optional basis since 2012, this year the Internal Revenue Service (IRS) issued a ruling making it compulsory for different taxpayer groups, with the aim of expanding its use to increase cost savings and combat tax evasion.
Throughout 2014, thousands of businesses have begun using electronic invoicing, in two stages: one in August and the other in October. Now, in just over a month it will be the turn of the last private sector group affected by the regulation. This group includes all those special taxpayers that did not migrate by the previous deadlines, i.e. self-printers, companies trading via Internet and taxpayers engaged in economic activities for export.
On the same date, January 1, 2015, the rollout of e-invoicing in the Administration will commence. Public companies, mixed economy businesses and public sector financial institutions will be the first to take this technological leap. Subsequently, two other groups related with the public administration area will still have to migrate.
In general, it is anticipated that rollout of electronic billing in Ecuador should be completed by July next year. By then, the IRS calculates that more than 13,600 taxpayers will use this system. Thanks to this, trade relations will be streamlined, at the same time as productivity and savings are increased. This is because this new system almost completely automates the procedure and slashes the costs of printing, sending and storing documents.
The advantages offered by electronic invoicing have become a priority in countries worldwide. European Union countries and several states on the American continent such as Mexico, Chile and Brazil have all taken similar steps to Ecuador’s to encourage the use of this system.
How to issue an electronic invoice?
EDICOM has developed an international electronic invoicing platform that enables you to create, send and store the electronic invoice in accordance with the requirements set forth in Ecuador. This process takes place automatically, so companies save on the time usually given over to these administrative tasks.