Updated: The Definitive Guide to Latin American Compliance

Steve Sprague
September 14, 2017

This blog was last updated on March 11, 2019

What began as an e-invoicing mandate in Brazil just over 10 years ago has significantly transformed the way businesses operate – not just in Latin America, but across the globe. Governments are progressively turning to technology to close tax gaps, crack down on tax evasion and gain visibility into transactions that happen within – and across – their borders.

Since Brazil’s e-invoicing launch, we’ve seen three major trends unfold: 1) the geographic reach of such tax compliance and reporting initiatives has expanded; 2) the breadth of business processes affected has widened, and 3) the pace of compliance has accelerated. 

Technology-Driven Business-to-Government Compliance Initiatives Spread Worldwide

Brazil’s early success in mandated e-invoicing has been noticed around the globe. In fact, 24 countries now require electronic submission of transactional data, spanning across Latin America, Europe and Asia. Some governments require this information in real-time, even before invoices are issued to buyers, and others allow for a slightly longer window from when the invoice is issued and when it has to be submitted. (See our overview of the three primary approaches to e-invoicing here). But no matter the approach, it’s clear that governments are showing a propensity toward transaction-level data, and new countries are adopting this approach each year. 

An Increasing Number of Business Processes Are Affected

Hardly any business unit is immune to the implications of tax compliance. Of course, accounts payable, accounts receivable, finance and accounting were the first affected. But these requirements also affect shipping and logistics, supply chain planning and inbound receiving, as in many countries, all invoices have to be verified and validated before shipments can move or goods can be an accepted. Human resources is also increasingly affected, with many governments requiring added details on employment processes – from payments to vacation days to disciplinary actions.

The Pace of Compliance Is Accelerating

Compliance moves fast, in two ways. First, the pace with which governments expect information is increasing, with real-time invoicing, eReceipts and tax reporting now common. In addition, the pace of change is accelerating. It’s not uncommon for countries to add, enhance or change their requirements multiple times per year.

Though the challenges associated with today’s tax and information reporting landscape are cumbersome, an intelligent approach to compliance means that your company will not only meet all the necessary requirements to avoid fines, penalties and operational disruptions, but also that you will be able to find efficiencies and opportunities within these mandates. Download our Definitive Guide to Compliance Across Latin America, updated in 2017, to determine how to prepare for compliance, tips to evaluate your solution and an overview of the specifics each country’s requires.

Sign up for Email Updates

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

Author

Steve Sprague

Como director comercial, Steve Sprague dirige la estrategia corporativa, las iniciativas de penetración de mercado y de field enablement para el negocio del impuesto sobre el valor añadido global (GVAT) de la empresa. El estilo de liderazgo de Steve se basa en su convicción de que, para que las organizaciones tengan éxito, deben comprometerse e invertir en los tres pilares estratégicos de la empresa: las personas, las prácticas y los productos.
Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
The Insurer’s Guide to the 2025 Bond Project

This blog was last updated on November 4, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
New ViDA Proposal Set for ECOFIN Approval

This blog was last updated on November 1, 2024 The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform. The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on November 5, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]

dtc shipping laws for craft spirits
North America ShipCompliant
October 23, 2024
Why It’s Time to Reform DtC Shipping Laws for Craft Spirits

This blog was last updated on November 5, 2024 While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving […]