e-Invoicing situation in Latin America [White Paper]
This year around 30 billion e-invoices will be exchanged worldwide, states the latest report from Billentis. Of these, 11 billion will be in Latin America alone, a figure much higher than that of other regions. The fact is that countries across the American continent have been at the forefront in use of this technology for years. The reason? The majority of Treasury Departments in countries like Mexico, Brazil, Argentina or Chile require the use mandatory e-invoicing from their companies.
For multinational companies that decide to start operations in LATAM, this requirement may have some complications. This is because the system may have different requirements in each country and failure to comply with them may incur penalties, or simply prevent companies from doing business. So, the EDICOM team has drawn up a free guide to e-billing in Latin America (available in English, Spanish and Portuguese) with the main details of the current model in each area.
e-Invoicing situation in Latin America
Today, the tax authorities of almost all countries in this area are promoting the use of e-invoicing as a method to prevent tax fraud and simplify compliance. Nevertheless, the stages of development reached are different in each country.
The most advanced in this technology are Mexico and Brazil. There, almost 100% of invoices are electronic and the system is mandatory for all taxpayers. Moreover, these states are now tending towards digitization of other tax processes, such as e-accounting.
Another country leading the way in widespread use of e-invoicing is Argentina. There, this technology is expected to become mandatory for almost all taxpayers by the end of 2016. Chile is also part of the group of regions leading the pack. In fact, it was the first Latin American state to roll out the system. However, for a long time, until 2014, it was an optional technology. Since then, the Chilean tax agency has set out a mandatory plan for gradual adoption for companies, due for completion in 2018.
Ecuador, Guatemala, Peru and Uruguay have decided, following Chile’s example, to implement e-invoicing gradually, depending on the sector and the technical or economic capabilities of businesses. A similar plan is due to be rolled out in Colombia in the near future. In this country, e-invoicing is not yet mandatory, but the pilot project for adoption of this technology has already begun, with the aim of making it compulsory from 2017.
What information is included in this White Paper?
The White Paper drafted by EDICOM’s e-billing specialists explains the background and characteristics that define this technology in Latin America. We must bear in mind that, although each country has a different regulatory framework, the Latin American model has certain features common to all States. Among them, the fact that it is compulsory in the majority of cases.
In addition, this document includes a guide with the most significant aspects of the e-billing model in Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Peru and Uruguay. This way, companies doing business in these markets can quickly see if the mandatory nature of the ruling affects them and what the technical characteristics are.
The White Paper on e-invoicing in LATAM also recommends a list of best practices for easy and simple implementation, as transparent as possible for the regular working processes of the companies concerned.