By the end of 2016, approximately 30 billion electronic invoices will have been exchanged around the world. Billentis reports that this is a 10% to 20% increase from last year. Nevertheless, every region does not use the electronic invoice with the same frequency. Eleven billion of these invoices are processed in Latin America alone where tax authorities require mandatory e-invoicing as a method to reduce tax evasion. For this reason, e-invoicing has become one of the most relevant issues at the CIAT Technology Meeting held from October 10th through 12th in Miami.
A Unique Model
Multinational companies that want to do business in Latin America must install the proper technology to utilize the mandatory e-invoice. Mexico and Brazil lead the mandatory e-invoice initiative because practically 100% of taxpayers use it. This technology is also well established in Chile, Ecuador, Argentina, Peru and Nicaragua. In other countries like Colombia, Uruguay and Guatemala, the use of the e-invoice is growing little by little. Meanwhile, other countries like Costa Rica, El Salvador and Panama are still in the investigative stage.
Companies that sell services or products in the Latin American market must face a double challenge when dealing with the electronic invoice. One challenge is that in this region, technology is a system of fiscal control. This means that trade relations involve not only the seller and the buyer but the tax administration as well. Invoices are declared in real time, so it’s necessary to ensure connectivity with the systems of these public entities.
On the other hand, multinational companies also face the challenge of adapting to the different technical and legal requirements of each country. This can reduce efficiency in many countries because it forces companies to use different technical solutions in every market and decentralizes administrative management consuming more resources as a result.
A Global Solution
That’s why EDICOM, which has been a global leader in electronic invoicing for more than two decades, has designed a solution to address these challenges. This solution is the Global E-Invoicing Platform that allows e-invoices to be issued in accordance with the regulations of more than 60 countries around the world while guaranteeing connectivity with their tax authorities. It is a comprehensive software designed to adapt to other regions so multinational companies can centralize fiscal compliance activities in and beyond Latin America.
The way the Global E-Invoicing Platform functions is simple. It integrates with a business’ management system with the goal of automating the issuance, declaration, storage and receipt of invoices. It also provides an opportunity for companies to increase productivity, enhances safety and reduces costs. When compared to traditional e-invoice management, it has been estimated that this solution can increase a company’s savings by 90%.
If you want to know more about this solution, please contact EDICOM to request a live demonstration. Also, we recommend that you download our white paper titled, “EDICOM’s Expert Analysis: The Electronic Invoice in Latin America” to learn more about where the e-invoice is mandatory in Latin America as well as details about the Global E-Invoicing Platform and how it can affect your business.