Panama Will Implement Electronic Invoicing in 2017
Panama’s economic and finance department has announced that it will implement electronic invoicing in 2017. The goal is to reduce tax evasion because with this system, businesses will report the details of their sales directly to the tax administration digitally and in real time. This has already happened in multiple countries such as Mexico, Argentina, Chile and Brazil.
Since 2011, wholesale retailers have been obligated to use fiscal printers, a measure that was intended to improve the control of taxes. However, after four years, the figures continue to be negative. From January to June of this year, the country’s economy grew by 6.2% but the revenue from sales tax fell by 6.5%.
In addition, fiscal printers have caused some operational problems and it has been difficult to integrate them with accounting programs. All of this has motivated the need to seek an alternative system that is able to meet the objectives set forth by the country’s economic and finance department and facilitate the process to businesses at the same time.
The implementation of electronic tax documents will simplify the generation, sending and declaration of invoices. With this technology, it’s possible to completely automate operations so that companies reduce errors and increase productivity rapidly.
Furthermore, the electronic invoice minimizes economic costs by eliminating the need to spend money on paper, postage and storage. It is estimated that savings could reach 80% compared to the traditional process.
A Global Trend
Today, dozens of countries around the world use digital documents or are in the process of doing so. EDICOM, through its International Electronic Invoicing Observatory, is responsible for studying the progress that occurs with e-invoicing technology as well as the progress of countries like Panama that will implement it in the future. This data is essential to keep the global e-invoicing platform up to date.