IMF Study Demonstrates Peru E-invoicing Works for Business and Government

Gustavo Jiménez
August 27, 2019

Far from being a burden, Peru’s electronic invoicing mandate has helped medium-size businesses embark on digital transformation while also catalyzing a broadening of the country’s tax base.

The International Monetary Fund (IMF) will release this fall a study detailing the impact mandatory e-invoicing in Peru, which began in 2014 and has since moved to a clearance model. Salma Khalid, an economist in the IMF’s Western Hemisphere Department, and Matthieu Bellon, an economist in the organization’s Fiscal Affairs Department, discussed the forthcoming study in a recent podcast. 

Peru widens its tax base with e-invoicing 

The economists found that mandatory e-invoicing has begun a widening of Peru’s tax base brought on primarily by small and medium-size businesses that were previously among the least compliant in the country. Firms report 10 percent more transactions on average than before mandatory e-invoicing took hold, the IMF economists found. 

Compliance to mandatory e-invoicing has been strong in part because it makes the threat of audit more real to businesses that could largely ignore the possibility of an audit before the mandate began. The cost of auditing through traditional paper methods is prohibitively high for the SUNAT, Peru’s tax authority, so auditing smaller businesses in the era before e-invoicing was rare. 

Mexico has, for its part, experienced success with e-invoicing and e-auditing. The process for resolving an audit from beginning to remediation used to take more than three years. After the Mexican tax authority, the SAT, implemented e-invoicing and e-audits, the time required for an audit shrunk to just 33 days. 

In the e-invoicing era, auditing is considerably easier and less expensive, meaning businesses have motivation to stay in compliance. The IMF economists found that while the largest and smallest businesses adapted fairly easily to e-invoicing, medium-size companies struggled the most, having to deal with far more transactions than the smallest businesses but lacking the budget larger businesses have to quickly adopt an e-invoicing compliance solution.

E-invoicing in Peru is a positive for government and businesses 

Still, e-invoicing has been a positive force in pushing medium-size businesses to pursue digital transformation, which will “make them more competitive” and “allow them to engage more effectively with the new economy,” the economists said in their podcast. They also praised the SUNAT for an effective rollout of the mandate, which took smaller businesses’ concerns into account by giving them more time to comply. 

Peru isn’t the only nation in Latin America to experience success with e-invoicing. Industry observer Billentis reported earlier this year that other Latin American countries have used the clearance model to produce measurable results:

  • Brazil has seen a $58 billion increase in tax revenue as a result of plugging gaps in invoicing and reporting.
  • Chile and Mexico reduced the VAT gap up to 50 percent.
  • Colombia found that it could reduce 50 percent of the country’s tax evasion by applying these forms of models.

Billentis also predicts that the clearance model will dominate global e-invoicing, with the market for e-invoicing and business enablement for this technology-driven tax enforcement model growing from nearly $4.8 billion in 2019 to $20 billion by 2025.

Take Action

Find out how Sovos keeps clients compliant with changing e-invoicing mandates all over the world. 

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Gustavo Jiménez

Gustavo Jimenez is the Product Marketing Manager for Sovos’ e-invoicing solutions and is based in Atlanta. Gustavo is responsible for go-to-market strategy for Sovos LatAm e-invoicing solutions in countries with existing and upcoming mandates. He has more than five years of experience in e-invoicing, middleware integrations, and regulatory research. He works closely with the product management and development team as well as sales and marketing to facilitate compliance process transformations for Sovos clients. Prior to joining Sovos, Gustavo was responsible for marketing activities and strategy at Invoiceware International, a leading e-invoicing solution for businesses with operations in Latin America. He focused on the go-to-market strategy of their solutions as well as communications with the LatAm market about regulatory changes and new solutions.
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

Asia Pacific E-Invoicing Compliance VAT & Fiscal Reporting
July 14, 2020
Asia: E-invoicing Developments Across the Region

The world has witnessed how several Latin American countries have successfully adopted e-invoices to replace paper versions and close VAT gaps – the difference between the revenue governments are entitled to receive and what they de facto manage to collect.    The positive effects of mandatory e-invoicing regimes, such as achieving simplification of the invoicing […]

July 13, 2020
How Importers Can Ship DtC

The beverage alcohol industry has many complicated rules and regulations that vary by state. Even though importers are similar to other members of the “supplier” tier (like wineries and breweries), they are often treated differently in federal and state regulations. This is particularly true when it comes to direct-to-consumer (DtC) wine shipping.  Currently, 46 states […]

ShipCompliant United States
July 9, 2020
3 Sessions, Many Takeaways: Wine Summit Piccolo Event Recap

Sovos ShipCompliant hosted the 15th annual Wine Summit a couple weeks ago, only this time it was a shortened “Piccolo” virtual version. This half-day event featured some of the most popular sessions and presentations originally scheduled for the cancelled live event back in May. The recorded version of the event is available to watch on-demand; […]

EMEA Tax Compliance VAT & Fiscal Reporting
July 9, 2020
Tax IDs and List Checks: The New Trend

VAT gaps can generally be found in countries that collect indirect taxes. This hiatus has led many tax administrations to implement Continuous Transaction Controls (CTCs), through which transactional and accounting data are monitored in real-time or near real-time. However, even countries with sophisticated CTCs may encounter fraud involving missing traders and non-existent supplies. This creates […]

Tax Information Reporting United States
July 8, 2020
The Industry Leader in Tax and Regulatory Reporting

Last year, Sovos promised insurers we would Solve Tax for Good®. A year later, we have helped thousands of insurers ease the burden and risk of modern tax and regulatory compliance. We have kept our promise by helping insurers stay ahead of the Tax Cuts and Jobs Act, SECURE Act and all other tax and […]