On May 17, 2023, the Electronic Invoicing Law was published in the Official Gazette of the Dominican Republic, whose purpose is to regulate the mandatory use of electronic invoicing in that country and sets the Electronic Invoicing Tax System and its features, optimization results and contingencies; as well as establishing the mandatory implementation deadlines and the tax facilities that will be granted to taxpayers who voluntarily take advantage of this system before the deadlines.
Likewise, the law sets Rules of Recognition, Authorization, Validation and Certification of the Electronic Invoicing or Electronic Tax Receipt (E-NCF).
The Electronic Invoicing Tax System is also created, administered by the General Directorate of Internal Taxes (DGII), through which all electronic tax receipts are validated and accredited.
SCOPE OF APPLICATION
The law applies to natural and legal persons, public or private, and to entities without legal personality domiciliated in the Dominican Republic that carry out operations of transfer of goods, delivery in use or provision and lease of services for consideration or free of charge.
FORMS OF ISSUANCE OF ELECTRONIC TAX RECEIPTS (E-CF):
- Self-developed systems
- Electronic invoicing service providers
- Free biller
MANDATE OF THE ELECTRONIC INVOICING
The use of electronic invoicing is mandatory throughout the territory of the Dominican Republic as of the entry into force of the law (May 18, 2023).
Exceptionally, the use of the paper invoice will be allowed for certain contingencies.
IMPLEMENTATION SCHEDULE
Large national taxpayers: 12 months from the entry into force of the law. (18 MAY 2024).
Large local and medium-sized taxpayers: 24 months from the entry into force of the law; (18 MAY 2025).
Small, Micro and unclassified: 36 months from the entry into force of the law. (18 MAY 2026).
The DGII will publish by notice the list of taxpayers who are required by law to issue E-CF.
Taxpayers may, with the approval of the DGII, agree to extend the deadline for comply with the electronic invoicing.
VOLUNTARY PERIOD AND INCENTIVES
A voluntary period is provided for all taxpayers who wish to be issuers of electronic invoices before the implementation of the previous calendar, providing incentives consisting of tax credits for MIPYMES and Large National Taxpayers.
In addition, in accordance with Article 34 of the Law, State suppliers that have been authorized as electronic issuers before DGII and the service or that are invoiced by e-CF are exempt from the withholding of five percent (5%) of the Income Tax on State payments.
