, ,

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 Senior Regulatory Counsel at Sovos. 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

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

North America Unclaimed Property
May 30, 2023
How to Set Up a Successful Unclaimed Property Program

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

North America ShipCompliant
May 30, 2023
How Hold At Locations Improve Your Customers’ Wine Delivery Experience

Direct-to-consumer shipping wine lovers enjoy the convenience of having their favorite vinos shipped to their front door. But what happens when, for whatever reason, they aren’t available to accept their wine deliveries? Whether they aren’t available during the day or they don’t have someone 21 or older available to sign for their package, these challenges […]

North America Sales & Use Tax
May 30, 2023
Identifying Sales Tax Liabilities and Why They Matter

By Steve Claflin, CLA It’s incredible that it has now been five years since the landmark Wayfair decision. It seems like just yesterday we were reading the case, alerting clients and tracking the ever-developing state guidance. Unfortunately, many companies still are not familiar with their sales tax filing obligations caused by economic nexus, or they […]

North America ShipCompliant
May 25, 2023
Out-of-State Breweries Gain Self Distribution, DtC Rights in Oregon

Under a settlement agreement, breweries located outside of Oregon now have more options for selling into the Beaver State, including direct-to-consumer (DtC) shipping and self-distribution to retailers. The settlement arose out of a lawsuit filed by a group of Washington breweries last year challenging Oregon laws that limited beer self-distribution to in-state breweries and DtC […]