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.

 

 

Find Out How You Can Automatically Retrieve Digital Tax Documents for Your Airplane Ticket Purchases

Mexican airlines have been required to issue digital tax documents for airplane ticket purchases since July 2014. After the tickets have been purchased, these tax documents must be sent to all taxpayers who request them within two business days.

For huge corporations in Mexico that purchase large quantities of plane tickets, the retrieval of digital tax documents can be a long and arduous process. That’s why EDICOM has developed a service specifically designed for automatically obtaining tax documents, therefore making daily management and administration tasks more efficient.

The digital tax document platform recognizes more than 90% of the airline hubs operating in Mexico. The platform’s ability to do this enables it to retrieve the digital tax documents for airplane ticket purchases.

 

How does this solution work?

The first step is to contact your travel agency to request a unique IATA code for your business or organization. This code is useful not only for retrieving invoices but it also improves the management and administration of flights purchased by your company.

Once you have the code, EDICOM’s digital tax document platform will take care of the rest by allowing the:

  • Integration of shopping reports: EDICOM’s solution has a search inquiry form that allows you to enter dates and search for tickets acquired during a certain period of time. These dates enable the solution to start the digital tax document retrieval process.
  • Transformation of shopping reports: EDICOM’s solution transforms shopping reports into a markup language (XML), which enables it to connect to airline hubs.
  • Communication with airline hubs: Communicating with the airline hubs enables this solution to collect all the tickets generated by the company’s airlines. This happens once a request is made to retrieve the tickets.
  • Retrieval of digital tax documents: Using the dates in the search inquiry form, the platform detects the digital tax documents and returns a message in response to the request for tickets.
  • Integration with an accounting system: Once the digital tax documents are retrieved, the solution transforms them into a language the company’s internal management system can understand.

EDICOM’s Guarantee

EDICOM is the leader in the development of electronic invoicing solutions in Europe and America. As the first authorized provider certified to implement electronic invoicing, EDICOM has a powerful technological infrastructure that integrates all the necessary services for issuing and receiving digital tax documents from invoices to payroll management.

Business@Mail Payrolls app users can view and approve payroll documents in seconds.

Long lines seem to follow us wherever we go. We wait in them to buy movie tickets. We wait in them at the grocery store. We wait in them to get the best seat at a concert. They never seem to go away and rob us of precious time whenever we have to wait in them.

Thanks to the Business@Mail Payrolls app, there’s one line you won’t be waiting in and that’s for the payroll department. This app will save you time and makes managing weekly, bi-weekly and monthly payroll documents easy. With the touch of a button, you can access and sign your payroll documents in no time.

Business@Mail Payrolls is EDICOM’s non-mobile solution for viewing, managing and signing online payroll documents. Its accompanying mobile app is fully operational and can be downloaded on all major mobile platforms on the market.

The B@M Payrolls app is free for all Business@Mail Payrolls users who already use the platform to manage and sign their payroll documents. To use it, simply access the Apple Store or Google Play, install the app and login to the mobile version with the same username and password used to access the Business@Mail Payrolls’ non-mobile site.

 

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Figure of Digital Document Reception Service Provider comes into being

As we reported previously, in this post, 2015 for Mexico is a year of new tax developments in the electronic sphere. The Omnibus Tax Ruling (RMF) announces the creation of a new figure: the Digital Document Reception Service Provider or DDRSP. This will make it easier for taxpayers to deliver the different documents they have to declare to the Tax Administration Service (SAT). The first to be covered by the scheme will be the Suppliers’ VAT Statement (DPIVA). Later, annual tax returns and interim payments are next in line for inclusion in e-invoicing.

As specified in section 2.8.10.6 of the Omnibus Tax Resolution (RMF), authorized reception service providers will take care of validating the documents from taxpayers and assigning the folio number that identifies the file content. They must also incorporate the digital seal of the SAT and comply with the technical specifications corresponding to each type of invoice document. Then, they send the taxpayer an e-acknowledgment of the information provided, or else a rejection notice if any mistakes have been detected.

Who can be a DDRSP?

The regulation states that Authorized Certification Providers (PAC) and legal entities that meet the set requirements may be granted approval by the SAT. Nevertheless, the application procedure to become a DDRSP is different. PACs only need to notify the AGSC’s Central Administration for Quality Management, indicating that they also want to operate as service providers. The remaining entities, however, must make an application under the provisions of information sheet 176/CFF.

What are the requirements for a DDRSP?

DDRSPs must be up-to-date on fulfillment of their tax obligations, hold a subscribed and paid-up company capital of at least ten million pesos and audit their financial statements for tax purposes. Another requirement consists of ensuring the protection of personal data regarding the information contained in the digital documents they receive and keeping them for at least three months. Likewise, they must provide taxpayers with an electronic acknowledgment, as well as a tool that can check the details of the same.

Service providers may also be reprimanded if they commit any of the infractions set forth in section 2.8.10.9 of the RMF.

How do I know who the DDRSP are?

Currently due for imminent release, the SAT website will publish the name, corporate name and RFC password of the digital document service providers whose applications have been accepted or rejected.  The authorization granted by the SAT shall remain in force for this tax year and the next.

Tax obligations in Mexico 2015

Obligaciones fiscales para México

Mexico is advancing towards construction of an increasingly electronic society. Most accounting procedures are already carried out digitally, enabling users to save time, cut business costs and improve fiscal control. This has made the North American country a benchmark for other neighbouring countries and even Europe and Asia. Nevertheless, there is still a long way to go.

In 2015, the Tax Administration Service (SAT) has established new tax obligations, which will also be transacted electronically and added to the breakthroughs achieved last year. In general, these are the requirements to be taken into account by companies in order to fully comply with the legislation:

 

Widespread use of CFDI

Since 2014, all Mexican taxpayers are required to use the Digital Tax Receipt via Internet (CFDI) in their business relations, as set forth in Article 29 of the Federation Tax Code. Mexico is currently one of the leading countries worldwide in the rollout of electronic invoicing, with a high penetration level which is gradually increasing.

To issue CFDI, taxpayers must use one of the 79 Authorized Certification Providers, which assume the responsibility for ensuring validity of documents for tax purposes and declaring them to the SAT.

Edicom was the first company to be certified as a PAC in Mexico and has different solutions to fully automate the creation, sending and storage of invoices. This way, companies can cut costs and boost productivity, while fulfilling their tax obligations.

 

Invoice storage in XML

Paper invoices are not valid for the SAT, as they only presuppose the existence of the tax receipt. In other words, taxpayers must store their CFDI in XML format. This way, they can make the appropriate deductions.

EDICOM holds NOM 151 accreditation (electronic notary) to ensure compliance with the preservation and safekeeping requirements for e-invoices. Find out more about this certification here.

 

Electronic payroll

All companies must issue their payrolls using the CFDI schema. This measure, which was introduced in mid-2014, constitutes an economic saving of up to 88% on each document. Now, the process is handled electronically and workers can sign their receipts with no need to leave their workstation, using solutions such as Business Mail Payrolls. This way, they have managed to do away with long queues waiting in line.

Taxpayers must bear in mind that this requirement applies to businesses of all shapes and sizes. Moreover, it is necessary to issue a CFDI for each payment made.

 

Electronic accounting

This is undoubtedly the main new tax feature for entrepreneurs in 2015. As stated by the SAT in a press release, 203,807 taxpayers must begin sending their accounting information from this January. However, corporations and individuals with annual earnings of less than 4 million pesos will have another year’s deadline to start using electronic accounting. In other words, until January 2016.

 

Electronic withholding document

The SAT, through point I.2.7.5 of the Omnibus Tax Ruling for 2014, announces the obligation to issue certificates of retentions (withholdings e-document) for all taxpayers providing online information on tax withholdings and payments.

This is an e-document containing the fiscal information on payments made by the taxpayers, to which the pertinent withholding complement is added in each case. This way, taxpayers must generate a standard XML file with the information required for each item subject to withholding of taxes set forth in the catalogue of withholdings published by the SAT.

Prior to submission to the SAT, each invoice must be submitted to an Authorized PAC for incorporation of the digital tax stamp that certifies it.

Businesses and taxpayers may issue the e-document with their retentions on an annual basis by the 31 January 2015 deadline for the issuing of withholdings pertaining to tax year 2014.

Find out more more about this tax requirement.