The advisory firm Paystream Advisorshas issued a report on e-invoicing in Latin America primarily aimed at large international companies with expanding economic interests in the region.
The first part of the study, headed “A CFO’s Guide to E-invoicing in Latin America”,examines the main features of electronic invoicing in Brazil, Argentina, Chile and Mexico. It also recommends some solutions for starting up the system. Among them, those from EDICOM stand out for their international scope and constant updating.
Latin America is probably the most advanced region of the world in the rollout of electronic invoicing. In these countries, most governments have adopted strict legislation making the use of electronic billing systems an everyday activity spread throughout all scopes, from B2B and B2G, where the generation of electronic invoicing is mandatory for submission to the tax authorities, to its implementation in the B2C areas, as a mechanism that provides a certain degree of fiscal control over individual taxpayers. Electronic invoicing not only entails great cost savings, but is also proposed as a highly effective measure to combat tax evasion.
The rollout of electronic billing in these countries has been progressive, gradually incorporating a greater number of taxpayers over time. In Mexico, for example, the process has been going on for over a decade. The aim of this gradual implementation is that the adaptation should take place without great efforts. However, today multinationals who want to grow in Latin America should implement this system from the word go. A process which can be difficult, especially in countries like Brazil or Mexico, where electronic invoicing is particularly complicated. This is compounded by the fact that many of these businesses come from countries like the United States, where the tax system is completely different.
Companies in the process of expansion should also bear in mind that each State has different technical and legal requirements. In this sense, the guide drawn up by Paystream is very useful, because it approaches the constraints involving e-invoicing in each of these countries. The report also highlights the need to have an international platform like EDICOM’s,which allows users to work with a single solution in different States, regardless of the legal standards, language employed or time zones.
An all-round solution
EDICOM has carried out electronic billing and EDI projects in over 60 countries worldwide. Moreover, the International E-Invoicing Observatory, run by renowned experts in the field, makes it possible to constantly update the solutions, so that they are always adapted to the law in each country. These features have consolidated the company’s position as a front runner in the sector.