The United Kingdom took the long-anticipated first formal step towards officially leaving the European Union when on March 29, the UK Envoy to the EU hand delivered the “Article 50 Letter” to the EU Council President. As of today, the clock begins ticking on a 2 year window in which the UK can negotiate its […]
Overview The main indirect tax of Mexico is the Value Added Tax (locally known as IVA), which generally applies to all imports, supplies of goods, and the provision of services by a taxable person unless specifically exempted by a particular law. The tax is imposed by the federal government of Mexico and ordinarily applies on […]
E-invoicing is now a reality in Colombia, with 58 companies volunteering to begin e-invoicing earlier this year in the pilot program. Eventually ~50,000 companies will be required to shift to e-invoicing in the next few years. Companies in Colombia are faced with creating a comprehensive compliance strategy to avoid the fines and penalties resulting from […]
On July 12, 2016, Gulf News Journal, an online news journal covering business and innovation in the Gulf Region, published an article highlighting how Sovos Compliance understands how implementing a value added tax (VAT) system in the member of states in the Gulf Cooperation Council (GCC) may affect businesses in the region who will now have to […]
Brexit is no longer just a catchy phrase. The United Kingdom has voted to withdraw from the European Union. In a nation-wide referendum of June 23, 2016, which saw near-record turnout, the “Leave” campaign won 52% of the public vote, compared to 48% for “Remain.” This historic decision has had immediate ramifications: one day after […]
Dispatches from The Commonwealth of Puerto Rico: The Final Installment (For Now!) At last, the legislation repealing the VAT in Puerto Rico is official law and we can say with certainty that the existing sales tax will apply on transactions on and after June 1, 2016. The route to VAT repeal was circuitous and somewhat […]
UPDATE on the Legislative Future of VAT – May 16, 2016 The future of the VAT in Puerto Rico, including the rate increase for B2B and designated professional services, is now in the hands of the Governor. While both the House and the Senate of Puerto Rico passed legislation to repeal the VAT, the Governor is […]
On April 18th 2016 the Colombia DIAN held a meeting in Bogota, Colombia to announce the start of its pilot phase for electronic invoicing. As the leader in Latin American electronic invoicing and fiscal reporting, Sovos attended this meeting to learn more about the pilot program. Listen to the webinar replay to get the latest details of the pilot and the key […]
Colombia is the eighth country in Latin America to mandate electronic invoicing. This latest requirement from Colombia comes as no surprise as Colombia has been planning to standardize electronic invoicing for the past decade, starting with decree 1929 in 2007. The old model had a few flaws and in 2013 the DIAN (tax authority) proposed […]
The much anticipated news from Colombia has arrived. On November 24, 2015, the Colombia DIAN (tax authority) announced in Decree 2242 that electronic invoicing will be mandated for specified companies starting January 2016. Similar to mandates already in place in Mexico and Chile, for example, this is a way for Colombia to combat tax evasion […]
As Uruguay continues to formalize its e-invoicing requirements, with new mandates taking effect in 2016 based on revenues, several factors distinguish its compliance processes. Today, we’re examining the common compliance challenges enterprises will face, as taxpayers with revenue greater than or equal to ~$3.1M USD (UI 30,000,000) prepare for the June 1, 2016, electronic invoicing […]
Last month, Colombia’s Finance Minister, Mauricio Cardenas, officially announced the country’s impending e-invoice mandates in an interview with El Tiempo. Using regional neighbors Chile and Mexico as models, Colombia DIAN is tackling tax evasion and reducing government expenditures through a three-pronged approach that focuses on the implementation of e-invoicing, tighter scrutiny of tax-exempt nonprofit organizations […]
There is major shift in the way governments in Latin America regulate businesses – particularly multinationals – that is distinct from anything else seen in global compliance. Unlike the United States and most European countries, which rely heavily on income taxes, Latin American governments and many other emerging markets generate the majority of their incomes […]
In the latest iteration of Latin American countries following the example set by Brazil’s e-invoicing regulations, Colombia is expected to introduce its own version of the legislation this year. The Dirección de Impuestos y Aduanas Nacionales (DIAN), Colombia’s version of the Internal Revenue Service, cites several benefits of making such a move, including: 1) Strengthening […]
Applying the correct indirect tax on sales of downloaded or online products presents a considerable challenge for global companies. This article endeavors to offer a brief overview of the different approaches taken in the United States (“US”) and the European Union (“EU”) regarding the proper tax treatment of such items. Before we begin, when using […]
Brazil may have set the stage for economic growth (and e-invoicing mandates) in Latin America, but its current prospects are quickly being overshadowed by some of its overlooked counterparts. In 2012, Mexico, Peru, Colombia and Chile joined forces as the Pacific Alliance, and soon will add Costa Rica as a full member to their ranks. […]
Latin American governments aren’t introducing and expanding e-invoicing mandates at a rapid rate simply to create more data. These invoices are used to support and verify tax deductions, ensuring that the government receives an accurate (and the maximum) amount of tax revenue. Remember, mandated e-invoicing covers all sales and in-country purchased via XML, so the […]
Latin American compliance is a challenge for all businesses, especially those operating in multiple countries who are attempting to manage these processes with internal staff and on premise software solutions. From significant IT investments, internal support needs, and the cost of potential business disruptions and fines, the inability to achieve or maintain compliance can cost […]