96% of transactions in Chile now take place via e-invoicing
The e-invoicing rollout in Chile is becoming an increasing reality. Around 70% of big businesses now comply with Law n° 20.727, which states that all large companies with annual turnover above 100,000 UF (approximately $2,340 million US dollars) may no longer issue documents on paper for tax purposes and are required to adopt the new electronic system.
Figures from Chile’s Internal Revenue Service (SII) show that 7 out of 10 companies already comply with the new rules, a figure expected to rise to almost 100% by the end of the year. Currently, up to 86% of these big corporations are either obeying the current legislation or converting to the new system, with the corresponding technical certification process to be able to implement it.
This is good news for e-invoicing in Chile, which has now become compulsory, initially for the large companies making up the biggest business sector in the country in terms of turnover. 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 now 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, from 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 removes 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. Likewise, it means a breakthrough in document management, 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 complete their obligations regarding 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.