96% of transactions in Chile now take place via e-invoicing
Day by day, implementation of e-billing in Chile is gradually making headway. Currently around 70% of big businesses already comply with Law n° 20.727, which rules that all large companies with annual incomes above 100,000 UF, approximately $2,340 million US dollars, may no longer issue documents on paper for tax purposes and are required to take up the new electronic system.
According to the Internal Revenue Service (SII), 7 out of 10 companies are already complying with the new rules, a figure they expect to rise to almost 100% by the end of the year. Right now, up to 86% of these large corporations are either obeying the current legislation or already engaged in switching over to the new system, with the corresponding technical certification process to be able to implement it.
Good news for e-invoicing in Chile, which has now become compulsory, first of all for the large companies making up the biggest business sector in terms of turnover in the country. However, the SII also highlights how the combined forces of the big hitters already working with e-invoicing and those currently in the certification process already represent 96% of all transactions taking place throughout the territory.
Small and medium-sized businesses are next in line to comply with the e-billing legislation in Chile, as of August 2016. Finally, it will be the turn of micro-businesses as of February 2017. Benefits of this new system include simplicity, time-saving and efficient control of tax-related matters.
Law n° 20.727 on electronic invoicing in Chile does away with the need to have invoices stamped at the SII offices, allowing savings on the time traditionally spent going there and back and waiting to carry out the transaction. In turn, it also means a breakthrough in document management by removing the need for physical storage of documents - no more printing on paper - so the risk of them being mislaid becomes negligible.
Making it easier for citizens to comply with their obligations in terms of tax payments, improving economic and business processes between companies, and VAT payment deferral, now shifted from the 12th to the 20th of each month for payments via Internet, are other advantages of e-billing. With this law, corporations can no longer issue documents of this legal validity on paper, unless covered by any of the causes for exception defined in the law per se.