Everything you need to know about e-Invoicing in South America

After the voluntary electronic invoicing was introduced in 2001, this regulation was extended to all companies in 2014.

In 2017, the SII (Servicio de Imquestos Internos) tax authority introduced new regulations for VAT returns:

• persons issuing electronic invoices must register with the SII to be able to issue DTE (electronic tax document) invoices.
• for this purpose, it is necessary to apply for an electronic certificate for the signature of the invoice
• after registration, a digital signature CAF (Folio Authorization Code) will be obtained.
• taxpayers are required to submit electronic invoices in XML format, for pre-approval before sending them to the customer, this is done through an official e-Invoicing provider
• after the SII approves it, it sends the invoice to the service provider to be forwarded to the customer
• the customer is then required to post the invoice to its accounting system
• the service provider then acknowledges receipt of the SII-approved invoice to the customer with a digitally signed notification (confirmation and acceptance)
• 6 years storage

Since April 01, 2019, all companies are required to issue electronic invoices. In Argentina, the electronic invoice is based on an authorization code issued by the AFIP (Administración Federal de Ingresos Públicos). A certificate is required to sign the code, known as the CAE (Código de Autorización Elecrónico). No electronic signature is generally required on the invoice, but the web service requesting the code must be signed with a digital certificate issued in Argentina.

Requirements:

The electronic authorization code facilitates tax control. This code is located on the invoice, which is then sent to the customer.

An XML format is required for the CAE, but the final invoice that the recipient receives can be created in any standard format.

The invoice must be stored for ten years by the issuer and the recipient.

In Brazil, the requirement for electronic invoicing is being strictly implemented. The Brazilian tax authority SEFAZ (Secretaria da Fazenda) makes electronic invoicing in different formats mandatory for all taxpayers and issuers of tax documents.

• for the transport of goods, the NF-e is used, which is submitted to the SEFAZ of the competent state before the products are shipped
• logistics companies use CT-e-invoices (Conheçimento de Transporte Eletrônico), which are also reported to SEFAZ
• service companies use NFS-e (Nota Fiscal Eletrônica de Serviços), here the fiscal control is exercised by the “Prefeitura” (respective municipality)

Electronic tax documents must be signed by a certificate issued by the Brazilian certification authority. Besides, an electronic signature is required by a certificate issued by the competent Brazilian authority.

Electronic invoices must be archived for five years.

After electronic invoicing was voluntary in Colombia for a long time, it became mandatory for all companies in 2019. According to the Billentis report 2021, Colombia will extend this obligation to other user groups and even more, will have to use electronic invoicing.

The exchange of electronic invoices must be carried out via a certified service provider. Mandatory e-invoicing aims to halve the incidence of tax fraud.

• companies that have requested number ranges for e-invoicing in the five previous years, by Decree 1929, are required to implement e-invoicing within a period of six months.
• large taxpayers selected by DIAN (Dirección de Impuequestos y Aduanas Nacionales) with a monthly volume exceeding three million invoices will have an additional three months to implement the project
• January 2019: Large taxpayers that have technical difficulties.
• during 2019: DIAN will communicate implementation deadlines, with a different schedule depending on economic activity

An electronic signature is mandatory to guarantee authenticity and integrity. This is done via a digital certificate issued by a certification authority.

Furthermore, the use of a sequential numbering system is required, which, after being approved as an electronic invoice issuer, must be requested from DIAN. DIAN then issues a ranking and the digital control key, which is required to create the Código ùnico de Factura Electrónica (CUFE). THE CUFE consists of the concatenated data contained in the invoice and the control key allows easy identification and guarantees integrity. It is encrypted using a SHA1 algorithm.

Electronic invoices must be created in a special UBL (Universal Business Language) format, which is based on the XML standard.

Invoices must be stored for as long as specified in the tax law.

Laut Billentis-Report von 2021 ist Mexiko unter den Top-Ländern, was das globale E-Invoicing-Volumen betrifft.

In 2011, the use of electronic invoices became mandatory for large taxpayers. Three years later, this requirement was then extended to all companies.

This is based on the electronic invoice Comprobante Fiscal por Internet (CFDI). It consists of an XML file and a readable PDF version. The invoice is digitally certified by the Mexican SAT (Servicio de Administracion Trinutaria).

• taxpayers must register with SAT for federal taxpayer registration
• receive an electronic signature key (FIEL) and a digital stamp (Certificado de Sello Digital, CSD) from SAT
• must hire a government-approved e-invoicing company (PAC) to validate and stamp invoices as they are issued

• supplier creates the e-invoice (unique supplier invoice number required).
• this is electronically transmitted to the PAC, which validates it and sends it back with the supplier’s CSD stamp
• PAC simultaneously sends the stamped invoice to the SAT
• supplier’s accounting system then creates the PDF version of the invoice
• XML version of a CFDI must contain the FIEL of the issuer
• to cancel a CFDI, a request must be made by the supplier through the PAC, credit not possible, the customer must approve or deny the request within 72 hours

In Peru, the most widely used e-invoice model is used. In 2015, a gradual start was made on converting invoices to the digital format. Then, during 2018, the e-invoicing requirement became mandatory for businesses. The model used in Peru also supports international standards, so connectivity is simplified.

Electronic invoicing in Peru (CPE = Comprobantes de Pago Electrónicos) is regulated by the SEE (Sistema de Emisión Electrónica) electronic invoicing system. In addition to invoices, sales documents, credit and debit notes must also be issued electronically.

• July 01, 2019: companies in the financial and insurance sectors and all savings and credit cooperatives that are not authorized to receive public funds, are controlled by the supervisory authority and carry out operations subject to sales tax
• Januar 01, 2020: all operations to manage private pension funds, educational institutions, technical centers for vehicle testing, Dl companies in the field of public passenger rail transport/water freight transport on national territory/air freight/exceptional passenger air transport
• According to the Billentis Report 2021: Peru extends the obligation to issue invoices electronically to additional user groups

Invoice issuers register in the SOL system and select an operator for electronic services (OSE = Operador de Servicios Electrónicos).

An electronic signature is required and the invoice is then stored for five years.

As of 01 December 2020, Uruguay’s regulation requires companies that invoice more than 305,000 UI (approx. 6500€) to create an electronic invoice (CFE = Comprobantes Fiscales Electrónicos).

The DGI (Dirección General Impositiva) is responsible for standardizing and managing the processes of e-invoices.

To participate in the CFE system, taxpayers must first register with DGI and meet tax requirements.

An electronic signature is required.

A number is issued for each invoice and reported to DGI. Once the receipt is received, the invoice can be sent to the recipient.

Invoices must be created in XML format and archived for five years.

Since 2019, Guatemala has a different invoicing system than before, called FEL (Factura Electrónica en Línea). This system includes the issuance, transmission, certification, and conservation of electronic invoices, credit and debit notes, receipts, and other authorized documents. These documents are titled “Electronic Tax Documents”, DTE (Documento Tributario Electrónico). The system established deadlines for when each segment should join the electronic invoicing system and thus the FEL should be implemented gradually. According to the Billentis report of February 2021, more user groups in Guatemala should apply the FEL system and create electronic invoices.
If someone already wants to voluntarily apply to the system, they must apply.

• Taxpayers who issue the invoice (EFACE)
• Software Provider
• Tax authority SAT (Superintendencia de Administración Tributaria)
• The issuer of the e-invoices (certification body)

• Taxpayers must first enroll in the FEL system.
• EFACEC then creates a file that is adapted by the certifier to the appropriate structure.
• The certifier verifies the file and signs it electronically to ensure authenticity and non-repudiation.
• The certifier creates the electronic authorization code CAE (Código de Autorización de Emisión de Facturas) and associates it with the document before sending it to the Tax Administration (SAT).
• These certification bodies must be authorized by the SAT, and this authorization must be renewed every year.
• After the document is sent to the SAT, the SAT verifies that all requirements have been met.

The DTEs must be created in a standardized XML file. The SAT automatically saves all invoices. Nevertheless, the issuer and the recipient must archive the documents for the period specified in the tax law. The certification bodies are also obliged to save the documents.