CFE – electronic tax receipts – in Uruguay

E-invoices (CFE) are to become increasingly mandatory and must be validated by the online interface of the tax authority.

The e-bill is to be implemented by a system based on the CFE format. The system, which is managed by the tax authority DGI, is currently in the expansion phase to increasingly promote the use of electronic invoices so that they will be mandatory for all in the future.

Format: CFE (Comprobantes Fiscales Electrónicos) is an electronic tax document in a specific XML format with a predefined syntax

Tax authority: DGI – Dirección General Impositiva. This authority is responsible for the standardization and administration of tax documents.

Storage time: Issuer and recipient must archive the electronic tax documents for a period of at least 5 years.

Electronic signature: An e-signature and validation by the tax authority are required for all invoices before sending them in order to generate a mandatory graphical representation QR barcode. Confirmation of the buyer’s e-signature upon receipt is not required.

Registration: The E-invoice issuer must register with DGI and obtain certification in order to be included in the system for CFE documents.

Tax control: A specific power of attorney is required, which is CAE (Constancia de Autorización de Emisión). This document allows the issuer to issue a unique number for each invoice in order to declare it to DGI. After receiving the acknowledgment of receipt from DGI, the invoices can be sent to the recipient.

Since 1 January 2020, the DGI Council in Uruguay has been gradually introducing electronic invoicing for B2B invoices to the DGI system on a voluntary basis. As there has never been a standardized format for e-invoices in the country, a format based on CFE has been finalized after consultation with trade and industry associations and ICAI.  A standardized invoice format ensures full e-invoice interoperability across the DGI ecosystem. E-invoices generated by one software must be able to be read by any other software so that there is no need to re-enter data – this is a standard expectation today. Machine readability and uniform interpretation is the main objective of a standard format for e-invoices.

This is also important for the details in the invoice during the submission of returns. In addition to the DGI system, the introduction of a standard format also ensures that an e-invoice that a seller shares with his buyer, bank, agent, or any other person can be read by machines. This eliminates errors when entering data.

The DGI Council approved the e-bill standard at its 37th meeting on 20 September 2019. All information on the standard is available on the GST portal. There is also a document with FAQs to clarify any questions related to e-invoicing. This document is intended to serve taxpayers, tax consultants, and software companies who will adopt the standard format in the future.