Peru is one of the most recent countries in Latin America to announce government-mandated compliance initiatives, with e-invoicing requirements going into effect for the majority of companies doing business here in mid-2016. However, large multinationals can’t wait to implement the mandatory processes – libros reports are due in January, requiring companies to submit 10+ e-accounting reports for sales, purchases and inventories.
As you begin to prepare for these upcoming mandates, we’ve crafted the top challenges companies must consider:
Standard Report Requirements
Specific business codes must be used in the standardized e-invoices and reports, yet mapping these XML codes to your business processes and ERP is difficult, often creating extraction issues on both the invoicing and accounting ends. Not to mention, these specifications are known to change frequently, requiring regular SAP updates.
Electronic documents must be submitted to the SUNAT (Peru’s tax authority) in real time – requiring seamless transmission between your ERP and government servers.
When government systems go down, companies must have a plan to resend documents when systems are back up. Like Chile, Peru’s paper model contingency plan is ONLY for situations in which the government system is down; it is not applicable when the problem is on your end, so you must have a robust compliance partner that can minimize the risk of outages.
Past XML invoices must be stored for four years, and companies must make documents available to customers via a web portal for at least a year. Unlike Mexico and Chile, where companies can email past invoices, businesses operating in Peru must make past XML invoices available for download via a web page. The Peruvian government is not providing this service, so it is up to the individual company to provide the portal.
Businesses only have 72 hours after sending an e-invoice to submit a cancellation request. Once the 72-hour lock is in place, companies can only make adjustments via a credit note – requiring a change to most company’s processes for cancellations. Companies should look for a solution that offers a built-in cross-check solution on the 72-hour time stamp to prevent illegal cancellations.
Once an invoice is received, companies technically have nine days to either accept or reject it – otherwise it is assumed to be approved by the SUNAT. Tax calculations must be made off of this approved invoice – not from any adjustments made via supplier-to-buyer transactions.
Additionally, buyers should create a process for collecting and archiving supplier XML – not just paper versions – as the XML is the only official version in case of an audit.
Goods cannot ship without official documentation in the form of a Guia de Remision or Guia de Transportista (if using a third-party transit provider).
With these complexities in mind, companies need a compliance partner that can integrate with their existing ERP to fill compliance gaps and minimize audit risks. To learn more about how Sovos can support your operations in Peru, contact us or listen to the webinar replay, How to Prepare for Peru’s Impending Libros Requirements and Electronic Invoicing Mandates.