Latin America: An Update on E-Invoice Requirements

Victor Duarte
June 3, 2020

In the field of global e-invoicing and tax control, most eyes have been focused on trailblazing initiatives in Asia, as countries such as India, Vietnam and Thailand look set to introduce new reforms in this area. However, even in the home of mandatory digital tax controls – Latin America – where mandatory clearance of B2B e-invoicing first became the norm, 2020 has so far seen many new initiatives and legal changes. Some are a natural effect of Governments combatting the economic impact of the COVID-19 pandemic through VAT and other taxes, whereas other changes are being executed according to plan.

Let’s look at what’s has been happening in this region:

Adoption of e-invoicing postponed 

In Bolivia, 2020 was supposed to be the year to implement and enforce the rules of the electronic invoicing Resolution (SFE). However, after carrying out a technical analysis and taking into account the country’s current economic situation aggravated by COVID-19, the National Tax Service (SIN) postponed enforcing its Electronic Invoicing System by enacting a new Resolution repealing the previous regulations on this topic.

E-invoicing expansion plans

In May, the Colombian Tax Authority (DIAN) issued Resolution 42, a new regulation setting out the requirements for the issuance, transmission, and validation of electronic invoices. This Order sets conditions to be met by technological providers offering e-invoicing services. The mandatory adoption of electronic invoicing in Colombia will be implemented from June to November 2020, based on the sector in which taxpayers carry out the underlying transactions.

Chile’s government also enacted a reform of the VAT law which established that the issuance of paper tickets for B2C transactions will no longer be accepted. Taxpayers must issue electronic tickets for the supply of goods and services to final consumers. The taxpayers must meet an additional compliance requirement to issue these electronic documents from August 2020; the amount corresponding to the taxes must be recorded separately from the amount of the price of the underlying supply. 

The Dominican Republic is moving forward in developing its e-invoicing system. Earlier this year, the legal framework regulating the issuance of several types of electronic tax documents was successfully adopted. However, the goal of the local tax administration (DGII) is to request taxpayers operating in the country, the mandatory issuance of e-invoices; and, for that purpose, the DGII will publish a phased schedule for the compulsory roll-out.

Ecuador continues to expand the scope of its e-invoicing system. This year, as planned, two groups of taxpayers were added to the mandatory issuance of electronic invoices: 

1) Those who carry out commercialization activity of heavy machinery and road equipment; and, 

2) Individuals or entities carrying out wholesale and retail operations of liquefied gas. 

Following the schedule published by the tax administration (SRI), by 2024, most taxpayers operating in Ecuador will be required to issue electronic invoices.

This year, the Government of Panama enacted a new Decree.  It requires all taxpayers excluded from having to use electronic fiscal machines attached to their POS systems to start issuing e-invoices. This Decree establishes that this requirement will be effective from 1 August 2020. However, the tax administration (DGI) will be able to define specific dates for certain groups of taxpayers to meet this requirement.

In the meantime, El Salvador is paving its way ahead towards the use of electronic invoices. The Ministry of Finance of El Salvador announced that the country will start a pilot program in 2020, with the participation of selected taxpayers operating in the country. The plan is to incorporate into the e-invoice issuance system both small and medium-size enterprises by 2021.  

It is likely that governments across LATAM will continue to take further economic and legal measures that risk having repercussions on invoicing compliance requirements. Taxpayers operating in these countries will have to meet these new requirements despite the difficulties imposed by the COVID-19 pandemic, to maintain their businesses compliantly.

Take Action

Sovos has more than a decade of experience in keeping clients up to date with 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.


Victor Duarte

Victor is a Regulatory Counsel at Sovos TrustWeaver. Based in Stockholm and originally from Venezuela, he obtained a Law degree and a specialisation degree in Tax Law in his home country. Victor also earned a Master´s degree in European and Internal Tax Law from Lund University in Sweden.
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 […]

E-Invoicing Compliance EMEA Tax Compliance VAT & Fiscal Reporting
July 8, 2020
Turkey: Penalties for Noncompliance with the Mandatory Electronic Document Framework

For rules to carry any real weight, the rule-maker must combine compliance with that rule with either a carrot or a stick. In the field of tax legislation, the rule-maker, in this case, the legislator or the tax authority, almost always goes down the route of the stick in situations of noncompliance. And the penalties […]

ShipCompliant United States
July 2, 2020
Direct Wine Shippers Have a New Tax Burden in Chicago

As of July 1, 2020, wineries making direct-to-consumer (DtC) shipments of wine into the city of Chicago will face an additional tax burden. Under Chicago ordinance O2020-801, the city’s Liquor Tax will now apply to all sales of alcohol to consumers in the city.  What Is The Chicago Liquor Tax? Chicago has long imposed an […]

Tax Compliance Tax Information Reporting United States
July 2, 2020
New Educational Course: Tax Compliance and Accounting for Captive Insurers

Finding relevant insurance accounting education has always been a challenge for insurance professionals. Insurance is a global industry. But, the financial reporting and tax rules for insurance transactions represent only a small niche within the extensive realm of statutory and GAAP guidance.  Captive insurance companies are yet another niche within that, which only narrows the […]

Sales & Use Tax United States
July 1, 2020
New Rules for Remote Sellers in Louisiana

Beginning July 1, remote sellers making sales into Louisiana must register with the Louisiana Sales and Use Tax Commission for Remote Sellers (“the Commission”) in order to be compliant with new requirements to collect, remit and report state and local sales tax. The information below is intended to explain what companies will be impacted, what […]

Sales & Use Tax United States
July 1, 2020
Back to Basics: Seven Things You Need to Know About CSPs & SST

Sales & Use Tax is complex and growing more so by the day. The number of jurisdictions, tax forms and rate changes makes managing these processes enough to deplete the resources of even the most experienced accounting and finance teams.  States have been working to alleviate the burden on companies by providing programs that allow […]