The Federal Administration of Public Revenue (AFIP) recently announced the massive mandatory application of e-invoicing in Argentina. This system was first used in 2006, but it was not until 2014 when its expansion throughout the country took place, due to approval of General Resolution 3571/2013. Now, the publication on 11th March of General Resolution 3749/15 goes one step further and requires more taxpayers to use electronic billing. If you have any doubts and queries about it, in this post we answer the most frequently asked questions about the new rules.
What is e-Invoicing?
The e-invoice is equivalent to an invoice on paper and legally valid for tax purposes. Moreover, this system provides extra security conditions, as it ensures the document’s authenticity and integrity.
What are the advantages of this system?
Use of e-invoicing will enable the authorities to better monitor business activities carried out in the country, thus helping prevent tax evasion. Moreover, with this system the process is automated, so errors and the costs arising from the use of paper, administrative management and sending are kept to a minimum. All this helps boost cost savings and productivity in the company.
For whom is it mandatory?
As of 2014, all groups indicated in the General Resolution 3571/2013 are required to issue electronic invoicing. Soon, as indicated in the new General Resolution 3749/15, all taxpayers registered for Value Added Tax (VAT) will have to join the system and stop issuing their invoices on paper. In addition, the legislation also provides for the accession of a small group of individuals and businesses, regardless of their taxation status. This group consists of companies providing prepaid medical services, privately-run public education institutions, rural property agencies, those renting property for tourism and, finally, art galleries, dealers and traders.
What happens if it is impossible for me to join the system, although I am required to do so?
The legislation provides some exceptions (Article 8) for taxpayers with difficulties in joining the system by the scheduled date. In these cases, the taxpayers must justify their situation between April 1 and May 31.
How are e-invoices issued?
There are two options for issuing electronic invoices. On one hand, small businesses with a low billing turnover can do it manually with a fiscal key through the AFIP website. On the other, the entire process can be automated through the use of specific solutions, which can generate the file, submit it to the AFIP via webservice, send it and store it safely. In the case of the EDICOM e-Invoicing Platform, which facilitates the procedure for big businesses with a high billing turnover.
What type of invoices are affected by Resolution 3749?
As stated in Article 2 of the resolution, taxpayers must issue the following documents electronically:
Class “A” invoices and receipts, “A” with the legend “PAYMENT IN C.B.U. NOTIFIED” and/or “M”, where indicated.
Class “A” credit and debit notes, “A” with the legend “PAYMENT IN C.B.U. NOTIFIED” and/or “M”, where indicated.
Class “B” invoices and receipts.
Class “B” credit and debit notes.
Do individual flat-rate taxpayers (monotributistas) have to join the system?
The flat-rate payer categories B to G are not required to join the regime, although they may do so on a voluntary basis. The remaining categories (from H to L) signed up for electronic invoicing in 2011.