When it comes to e-invoicing and tax reporting compliance in Latin America, Mexico and Brazil often dominate the discussion as the earliest and most comprehensive to enact such requirements. However, complexities abound throughout Latin America – and Argentina, Chile and Uruguay are no exception.
Argentina already requires some unique processes not frequently seen in the rest of Latin America – most notably its dynamic sequencing, in which invoices are processed in batches. If there is an issue with one single invoice, all those following will not process until the issue is corrected. Now, Argentina is introducing new proforma VAT initiatives, shipping requirements and high volume invoicing processes that make compliance in this country even more complex.
Chile introduced mandatory e-invoicing in 2014, and has quickly ramped up its requirements to span across organizations. From finance to logistics to IT, multinational teams doing business in Chile must ensure that they are prepared to produce and submit 10 separate document types (collectively called “Documentos Tributarios Electrónicos” or DTE), in addition to monthly and annual accounting reports.
In the past year, Uruguay has developed a more formalized approach to e-invoicing compliance. Previously sending letters to individual companies alerting them to their required status, Uruguay announced new revenue-based mandates that mean any company with revenues greater than greater than $3.1 million USD must already be in compliance, and those with revenues of ~$1.5M USD or greater must meet the December 1, 2016, deadline. Requirements distinct to Uruguay include its daily summary reports and archiving process. Companies are required to file daily reports for all transactions submitted, approved, rejected or canceled, and must maintain archives for 10 years – significantly longer than the six years most Latin American countries require.
Contact us to learn more about the complexities and unique compliance requirements in Argentina, Chile and Ecuador.