, ,

New Argentina E-invoicing Mandate Focuses on Improving SMB Financing Options

Andrés Camacho
August 26, 2019

As a result of an e-invoicing mandate currently rolling out in Argentina, small and medium-size businesses (SMBs) are or will soon be required to use a specific form of invoice when billing larger companies. 

Companies classified as SMBs (or PyMEs in Spanish) by AFIP, the Argentine tax administration, are required to use the Facturas de Crédito Electrónicas (FCE), a new type of electronic invoice that gives them the option to expedite cash flow by selling their accounts receivable (AR) invoices to financial institutions. 

New e-invoicing mandate rolling out now in Argentina 

The mandate began rolling out by industry on May 1 and will finish its rollout on Oct. 1. While the new invoice type is mandatory for transactions that occur between SMBs and large companies, it is optional for use between SMBs. This type of invoice permits smaller businesses to negotiate their sales invoices in the financial sector and anticipate AR collection. 

Large companies that receive the new type of invoice have 30 days to accept or reject it, or they can choose to accept it by default. Transmission of the invoice takes place entirely through AFIP, which regulates and controls the invoicing process and notifies participants of the status of each invoice. 

SMBs can send outbound invoices via the AFIP website manually or can leverage a company like Sovos to automate the process using the web service published by AFIP.  

A shift aimed at boosting financing options for SMBs 

The mandate is causing both small and large companies to react by ensuring that their invoicing systems and processes are compliant. Smaller firms have to be able to generate an FCE when doing business with a large company, and big organizations need a solution that will enable them to comply with the mandate and receive, and accept or reject, inbound FCE invoices from smaller trading partners. 

This is a huge opportunity for SMBs to improve cash flow. By using the FCE, SMBs will be able to reduce days sales outstanding, or DSO, collections, which could prove critical to their operations and liquidity. 

Take Action

Sovos has more than a decade of experience with Latin American e-invoicing and helps companies meet constantly changing mandates in Argentina and all over the region. Learn more about Sovos e-invoicing compliance solutions.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Andrés Camacho

Andrés Camacho es Strategy Program Manager en Sovos. En su cargo, Andrés es el responsable de conocer cada mercado donde Sovos tiene clientes, específicamente en Latinoamérica y Europa, y de desarrollar la estrategia para la producción de soluciones de cumplimiento. Andrés se unió a Sovos cuando en 2016 la compañía adquirió Invoiceware International. En esta última se desempeñaba como Product Manager y estaba a cargo de gestionar el desarrollo de los productos de facturación electrónica de la compañía.
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 […]