The Electronic Invoicing Law of the Dominican Republic was published on 17 May 2023, mandating e-invoicing throughout the territory as of 18 May 2023.
The law was published in the Official Gazette, whose purpose is to regulate the mandatory use of electronic invoicing in the Dominican Republic, including the establishment of the electronic invoicing tax system and its characteristics, optimisation results and contingencies, as well as the entry periods and tax facilities that taxpayers who take advantage of this system will be granted.
The law includes a Chapter on the Criminal and Tax infractions and penalties for non-compliance and still allows using paper invoices for certain contingencies.
Scope of application for e-invoicing in the Dominican Republic
The law applies to natural and legal persons, public or private. It’s also applicable to entities without legal personality domiciled in the Dominican Republic that carry out the transfer of goods, delivery in use or provision and lease of services for consideration or free of charge.
Recognition and authorisation
All electronic invoice issuers in the country shall:
- Be recognised and authorised as such by the General Directorate of Internal Taxes (DGII)
- Have a digital certificate for Tax Procedure, issued and signed digitally, by a certification entity authorised by the Dominican Institute of Telecommunications (INDOTEL).
The requirement for holographic or handwritten signatures and commercial seals for electronic invoices is fulfilled by using digital signatures supported by a digital certificate.
Electronic invoices cannot be modified once signed digitally and sent to the DGII.
Validation of the electronic invoice in the Dominican Republic
The electronic invoice must comply with the standard format established by the tax authority, which will be validated by computer systems. E-invoices will only be admissible when they comply with this validation.
Electronic invoices will be sent to the authority and the electronic receiver through electronic applications connected to the internet and in an XML file.
The electronic invoice will have a Printed Representation (RI) of the E-CF which will be delivered as a physical document to non-electronic receivers in exceptions. Otherwise, it will be delivered to electronic receivers when they are in contingency so that they can prove and report purchase transactions to the authority and third parties – as well as support tax credit or consumption, and keep the indicated documents as established by current legislation.
The General Directorate of Internal Taxes (DGII) will be the competent authority for validating and certifying the content and integrity of the electronic invoice.
Dominican Republic: Electronic Invoicing Tax System
The Electronic Invoicing Tax System is administered by the DGII and will be used to validate and accredit all electronic tax receipts resulting from electronic invoices. It will also validate legal forms or electronic tax documents that modify them and that serve as support to back up expenses and tax credits.
The DGII is also responsible for ensuring the integrity of information that is sent instantly for validation and the accreditation of electronic tax receipts (E-CF).
Issuance, conservation, types and sequence of electronic tax receipts
The three forms of Issuance of Electronic Tax Receipts (E-CF) are as follows:
- Self-developed systems: The DGII will authorise taxpayers who wish to join electronic invoicing through its own development system, if they meet the requirements established for the issuance and receipt of E-CF
- Electronic invoicing service providers: The taxpayer may implement an electronic invoicing system through a service provider that has been certified in compliance with the current regulations established by the DGII
- Free billing: The DGII will have a free technological facility for issuing electronic tax receipts, aimed at taxpayers who meet the criteria defined for the use of this tool and dictated by the means established by the DGII
The electronic tax receipts sent to the DGII will be validated online through the information system, according to the schemes published by the technical documentation and complementary standards that define their structure and behaviour.
Once they’ve been compared and validated against the criteria, the DGII will respond by delivering a response number identified as “trackID” with which the E-CF issuer can consult the document’s status.
Types of electronic tax receipt (E-CF) or electronic tax documents
There are 10 types of electronic tax receipts or documents as part of the law. These include:
- Electronic Tax Credit Invoice
- Electronic Consumption Bill
- Electronic Debit Note
- Electronic Credit Note
- Electronic Voucher for Special Regimes
- Electronic Government Receipt
- Electronic Proof of Purchase
- Electronic Receipt for Small Expenses
- Electronic Receipt for Foreign Payments
- Electronic Proof for Exports
Sequence of electronic tax receipts
All E-CFs must have an electronic tax receipt number (E-NCF), authorised by the DGII, which consists of an alphanumeric sequence.
The number and type of electronic tax receipt numbers will be authorised according to the economic activity registered in the National Taxpayer Registry (RNC), operational volume, and level of compliance of the taxpayer – as well as the risk profile of the taxpayer, in accordance with the parameters established by the DGII.
Duties of Electronic Issuers
The duties required of electronic issues, in order, consist of:
- Sign all E-CFs issued with a valid Digital Certificate
- Receive all E-CFs from their suppliers that are validly issued
- Comply with the technical requirements that the DGII provides
- To exhibit all the information that the DGII requires
- Keep the E-CF in accordance with the provisions of the Tax Code
Standard format for the structure
The standard format for the structure of E-CFs is as follows:
- Document identification data
- Data relating to the Electronic Issuer
- Data relating to the Electronic Receiving Buyer
- Data relating to the good or service traded
- Data relating to the value of the transaction
- Tax data
- Date and time of the digital signature
- Digital signature
Taxpayers must indicate data that modifies or affects electronic tax receipts of credit and debit notes.
Implementation schedule for e-invoicing in the Dominican Republic
- Large national taxpayers: 12 months from the law’s entry into force (18 May 2024).
- Large local and medium-sized taxpayers: 24 months from the law’s entry into force (18 May 2025).
- Small, micro and unclassified taxpayers: 36 months from the law’s entry into force (18 May 2026).
The DGII will publish the list of taxpayers required by law to issue E-CF. With the approval of the DGII, taxpayers may agree to extend the deadline for compliance with electronic invoicing regulations.
Voluntary period and incentives
A voluntary period is provided for all taxpayers who wish to be issuers of electronic invoices before implement the previous calendar. The DGII is providing incentives consisting of tax credits for MIPYMES and Large National Taxpayers.
Looking for further information on e-invoicing in the Dominican Republic? Contact our expert team.