Latin America is at the Forefront of Electronic Invoicing

Billentis published a report on e-invoicing/e-billing titled, “Entering a New Era,” which states that in 2015, approximately 42 billion electronic invoices will be processed around the globe. Latin America will process 25 billion of these electronic invoices, which is more than half of the e-invoices being processed worldwide. These facts confirm that Latin America is a global leader in paperless invoicing initiatives.

In Latin America, Chile is the birthplace of the electronic invoice. Taxpayers who live there have the option of choosing whether or not they want to use electronic invoicing since exempt resolution number 45 was passed in 2003. However in 2014, the internal revenue service began to take steps to establish a timeline for adopting obligatory e-invoicing, which will end in 2018. Chile wants to establish an e-invoicing regulation similar to the ones implemented in Mexico and Brazil, which has made them the two most developed countries in electronic invoicing at an international level.

Brazil has managed to expand e-invoicing by 90% in the B2B and B2G sectors. According to Billentis’ report, Brazil exchanges almost 1 trillion digital documents every month. The state treasury’s challenge is to take this technology a step further by requiring companies to identify end consumer transactions with a specific type of electronic fiscal note, also known as a fiscal note for end consumers.

The e-invoice has also been expanding rapidly in Mexico due to e-invoicing implementations that have been taking place since 2004. Since electronic invoicing already extends to areas such as payroll or electronic accounting, it’s been estimated that the country processed 5 trillion electronic invoices in 2014.

In 2015, Argentina is expected to experience high growth as well. The tax administration recently added hundreds of thousands of taxpayers to the expansion program and has also announced plans to continue expansion throughout 2016. Also, Uruguay will play a leading role this year. Its tax administration hopes the growth of this system will reach 40%.

Other countries such as Peru, Costa Rica and Colombia that already use electronic invoicing are on the verge of making even greater progress soon. In the near future, Colombia is expected to approve an expansion regulation that would require certain businesses to migrate to the new system in 2016 while others will be added as time goes on.

 

 

AFIP sets 3-month deadline extension for e-invoicing

July 1 was the deadline for VAT payers in Argentina to join the e-billing system. However, the Federal Public Revenue Administration (AFIP) has announced in a communiqué posted on its website that until October 1, all situations reported by taxpayers concerning difficulties in meeting the obligation will be considered. This means that until that date, invoices issued on paper will continue to be valid for some exceptional cases.

With the approval of General Resolution N° 3749, the AFIP opened up a window to discuss the new billing regime with those sectors facing most difficulty in adopting it. The period for issuing these suggestions ended last May 31. Even so, the tax authority now confirms that all the situations put forward will be taken into consideration until October 1st, even if they have not been reported via the dialogue window stipulated in the regulation.

In the weeks prior to the deadline for migration to the new e-regime, several groups of businesses, particularly SMEs, called upon the Finance Minister to allow more time for technological adaptation to the system. So, the AFIP finally granted this three-month extension, with the aim of gradually achieving widespread use of e-invoicing, to make the most of the advantages of this technological breakthrough.

An increasingly paperless Argentina

As is happening in other countries like Mexico or Chile, Argentina aims to remove paper from admin and business processes. General Resolution No. 3749 is expected to reach 800,000 electronic issuers, a figure that will grow in the years to come. The AFIP has also announced that as of January 2016, new taxpayers will be eligible for e-invoicing, regardless of their assessment status.

How to issue e- invoicing?

Taxpayers affected by General Resolution N° 3749 must adapt to the new system as soon as possible. Bear in mind that those that fail to do so by the end of the extension deadline will be facing penalties ranging from $300 to $ 30.000, reports the AFIP in its FAQs.

To find out how to migrate to e-invoicing in Argentina, EDICOM has prepared a free guide you can download here. The guide explains all the details of the new system and how companies can benefit from this obligation.

(Argentina) e-Invoicing now mandatory for registered VAT payers

As of 1 July, all Argentinean taxpayers registered for Value Added Tax (IVA) must issue e-invoices to support their business operations in the domestic market. This is laid down in Resolution 3749, published by the Federal Public Revenue Administration last March.

The legislation also requires a small group of individuals and businesses to join the system, regardless of their taxpayer status. The list includes companies providing prepaid medical services, privately-run public education institutions, rural real estate agencies, people renting property for tourism purposes and, finally, art galleries, dealers and traders.

Along with the spread of e-invoicing, General Resolution 3749 implements other new features. For example, reporting systems are eliminated from the aforementioned sectors, to facilitate bureaucratic tasks. In addition, the former Online Issuing Regime for Electronic Invoices or RCEL disappears, to be replaced automatically by the e-Invoice issuing Regime or RECE.

 

Still haven’t migrated?

If you are one of the taxpayers affected by these regulations, you must immediately adapt to this new system to avoid possible sanctions. We advise you to download this free white paper, in which you will find all the details on e-invoicing and discover how to migrate to the system in a few easy steps.

 

Ongoing growth

The AFIP forecasts that the obligation to issue e-invoices will reach a total of 810,000 taxpayers. In the coming months, new taxpayers will adopt this technology, which helps cut costs and streamline operations. In fact, the new General Resolution 3779 requires other sectors to join the electronic system as of January 2016.

 

e-Invoice issuing solution

To speed up the process of sending and receiving e-invoices, EDICOM has developed a platform which integrates with the ERP and automates all transactions. In addition, it is aligned with the AFIP requirements, as well as those set forth by the rest of the tax authorities worldwide. This way, beyond compliance with current legislation, it brings great benefits for the company.

Argentinean e-invoicing in detail

As Head of Sales at EDICOM in Argentina, Diana Salazar has put her expert knowledge of the technical and legal requirements of e-invoicing into practice, helping to draft a free practical guide to electronic billing, which addresses all the most salient points of this new system, from the current rules governing e-invoicing to the steps that must be taken to adopt it. The aim is to help Argentine taxpayers take this technological leap more easily.

We must remember that in just a few weeks, as of July 1, General Resolution 3749/15 will make e-invoicing mandatory for the immense majority of taxpayers. In fact, the Federal Administration of Public Revenue (AFIP) expects to soon reach 800,000 e-invoice issuers. The ruling affects all VAT registered taxpayers, but also a smaller group of individuals, regardless of their tax assessment status.

In this Expert Analysis, Diana Salazar takes a look at the development of e-invoicing in Argentina since it began to be regulated in 2002. The document explains how the current regulation came about and provides details of who is required comply and how they must do so, in just three easy steps.

In addition, readers will learn about the different options available for issuing e-invoices. Specifically, the Expert Analysis highlights the most appropriate solutions for multinationals and medium-sized and large companies, as in these cases automation is key to achieving economic savings.

If you would like to find out more, simply click here and enter some basic details. We will send you this handy guide with everything you need to know about e-invoicing in Argentina.

DOWNLOAD THE EXPERT ANALYSIS

EDICOM Expert Analysis: eInvoicing in Argentina

The use of e-invoicing entails significant benefits for the public and private sectors. Without a doubt, saving on economic costs is the main advantage, although there are other benefits such as the speed of procedure and eco-footprint reduction.

As a result, this system is spreading worldwide and Argentina is one of the countries that have already taken legal measures to encourage it, resulting in use becoming mandatory for the majority of taxpayers.