Challenges of e-Invoicing in Mexico and LATAM countries

e-invoicing

Electronic invoicing for taxpayers is becoming a mandatory issue for companies throughout the world. The latest study on E-Invoicing/E-Billing International Market Overview & Forecast from Billentis calculates a volume of e-invoices exchanged that could reach 36 billion in 2017.

Countries across the American continent have been at the forefront in use of this technology for years, with Mexico and Brazil being the countries with the most advanced e-Invoicing legislations. Tax authorities within Central and South America are looking up to these models and adapting them to their own fiscal models, like those of Costa Rica and Colombia. However, in the United States e-invoicing is still in the initial stages of development in comparison to countries in Latin America and Europe.

Mexico has become a global e-invoicing leader through establishing a system which has influenced e-invoicing compliance on an international level. The Mexican CFDI has experienced updates since 2014 designed to ensure a better user experience, and to solve incidents that are detected over time with the application of this system.

This year, the CFDI will undergo a major evolution (VIDEO), introducing a new version 3.3 which will come into force on December 1, 2017. The new version includes changes in structure, data format, data features and data pools/catalogues, as well as in validations and calculation rules.

The update to version 1.2 of the Payroll Complement and the use of the Payment Receipt Complement, will also become mandatory this year, beginning December 1, 2017. México’s Tax Administration Service (SAT) also announced updates regarding the Foreign Trade Complement, where version 1.0 and 1.1 will coexist during 2017.

Globalization, the expansion of markets and legislative changes around the world means that companies are increasingly interconnected, and require secure and reliable communications to roll out international e-Invoicing projects.

Now that e-invoicing is extending to all continents, a main obstacle for multinational companies is to comply to these new systems. This is why EDICOM has developed a global electronic invoice platform that adapts to different e-invoice models that exist in the world and to the legislation currently in force in each country. This way companies need only one platform to operate in any market, allowing them to continue working from their centralized management system.

Would you like to know more? Download our free Expert Analysis on e-Invoicing in Latin America (available in English, Spanish, Portuguese).

DIAN authorizes EDICOM as e-invoicing provider in Colombia

La DIAN autoriza a EDICOM como proveedor de factura electrónica en Colombia

The National Tax and Customs Directorate (DIAN) has issued a resolution authorizing EDICOM as e-billing service provider in Colombia. With this certification, the Tax Authority gives a new boost to the massification project, scheduled for completion in 2019. By then, all the country’s businesses could be using this system.

EDICOM is one of the first e-invoicing technology providers in Colombia to be granted approval by the DIAN. Bear in mind that the indispensable requirement to begin providing the service consisted of being an e-invoicing issuer. In an initial phase, the DIAN authorized only 19 companies, the majority of which had previously taken part in the pilot project, as in the case of EDICOM.

Nevertheless, the qualifications required to become a technology provider go beyond being able to bill electronically. At the end of the day, the DIAN needs to ensure both the company’s technological and financial status. In this sense, EDICOM has fulfilled all the criteria laid down in article 12 of Decree 2242 of 2015:

  • Keeping the Registro Único Tributario (RUC/RUT) single taxpayer number valid and up-to-date.
  • Being responsible for sales tax and belonging to the common regime.
  • Holder of ISO 27001 accreditation on information security management system.
  • Certification of the corporate financial statement, signed by a qualified public accountant or auditor, showing liquid assets of over 20,000 UVT and fixed assets worth more than 10,000 UVT.

EDICOM’s authorization as e-invoicing service provider in Colombia is valid for 5 years. After that, DIAN will carry out the necessary checks to renew it in order to maintain taxpayer security.

How to issue e- invoicing in Colombia?

The next step scheduled by the Tax Authority will be to require mandatory adoption of e-invoicing from a given number of businesses. These taxpayers can choose any authorized technology provider with the appropriate software up and running. To do so, they simply need to check the listing of participants to be published by the e-invoicing IT service.

In addition, it is also possible to sign up for e-invoicing voluntarily. In that case, the DIAN shall issue a decision confirming the authorization and linking the taxpayer with the software they have decided to implement.

An integral solution

EDICOM, international leader in e-invoicing, has developed a solution that adapts to this technology globally. A platform integrated with the in-house ERP or management system which automates e-invoicing in compliance with all the legal requirements in any country worldwide, including Colombia.

e-Invoicing in Mexico: Updates for the CFDI

CFDI einvoicing

Mexico’s Tax Administration is carrying out specific updates on its CFDI, designed to ensure a better experience of using e-invoicing and to remedy incidents that are detected over time with the application of this system.

Mexico’s Tax Administration has recently published new guidelines regarding the CFDI.

The first major change will come with the new CFDI version 3.3. The new version includes changes in structure, data format, data features and data pools/catalogues, as well as in validations and calculation rules. Specifically, we highlight the following changes:

  • New validation rules are applied to check the coherence of the data and prevent possible errors.
  • Twenty-three catalogues will be used to improve data accuracy, some of them internationally accepted. Through these, the information for certain fields will be designed.
  • The existing information will be integrated with the billing process, so that when submitting returns, some fields will be displayed prefilled.

The second change implies including a new complement, the payment receipt complement. The version 1.0 of this complement must be included in the CFDI issued to confirm the receipt of payments in partial instalments and in those cases where the amount due is received in a single payment, but this is not covered when CFDI was issued, even in the case of credit transactions which are fully paid at a later date than that of issuance of the corresponding CFDI.

The third change affects the cancellation of CFDI. In this update, the tax administration has defined in detail, the procedures for cancelling online digital tax documents. In particular, it has defined new rules for how the receiving company can cancel an online digital tax document that has been accepted as well as one that hasn’t been accepted. See more details about cancelling online digital tax documents.

Learn how to successfully handle electronic invoicing by clicking here to download our white paper that explains the state of the electronic invoice in Latin America.

Click here to download the infographic, which details all the changes taking place in 2017 for online digital tax documents.

EDICOM taking part in tenth Factuurcongres

Factuurcongress

Next April 13th is the date of the tenth edition of Factuurcongres being held in Rotterdam, and EDICOM is taking part again this year. On this occasion, the Dutch event comes under the heading “Ready for the future”. e-Invoicing in the Netherlands is currently going through great changes, both domestically and in the rest of the European Union.

We must remember that, since last January, Dutch public service suppliers are required to use e-invoicing for any new contracts signed with the country’s administrations. The former ones will continue to be valid under the traditional system, although the door is open to the use of this technology voluntarily in all cases.

Meanwhile, the rest of Europe, many countries have already taken the step of calling for e-invoicing in the B2G area. Among them Spain, Portugal, France or Italy. In fact, the latter has gone even further and is also starting to promote the use of this digital model in B2B trade relations.

To all this, we must add Directive 2014/55/EU, which requires the implementation of e-invoicing for public procurement processes in all member states as of November 2018. Yet another challenge for which businesses must be “ready in the future”, as highlighted by Factuurcongres on its tenth anniversary.

Event details

The Factuurcongres event is taking place at the Doelen ICC in Rotterdam, from 8:30 in the morning. EDICOM’s experts in international e-invoicing, Vera Kabout and Marlies Gevaert, will also be there, demonstrating the most cutting-edge solutions at stand 14.

The event is a prerequisite for the CEO appointment, IT managers, CFOs, business analysts and, in general, any professional responsible for the implementation and use of electronic invoicing. Visitors can arrange a free meeting with the specialists this from EDICOM, using this contact form to state their case and clear up any major doubts and queries about this technology.

Global e-Invoicing Platform

Over the past ten years, Factuurcongres has seen some great breakthroughs in the e-invoicing area, but also in solutions. As the event organizers point out, a decade ago the technology was still quite basic, but nowadays we are working with platform is integrated with the ERP that help businesses achieve greater profitability from this paperless model.

In this progress, EDICOM not only offers an automated solution, but is pioneer in the creation of an international platform. In the age of globalization, companies need to provide a centralized response to achieve fiscal compliance involving different demands in each market. This is the only way multinationals can continue to exploit the economic benefits and efficiency generated by e-invoicing.

The Global e-Invoicing Platform solution from EDICOM lets you automate the creation, storage and sending of invoices from the same environment, meeting the requirements of more than 60 countries around the world. This is possible thanks to the work carried out from the Permanent e-Invoicing Observatory, which studies and analyses the evolution of this technology in order to constantly adapt the solution to new legislation.

Take part in Factuurcongres free of charge

Those interested in attending the tenth edition of Factuurcongres can sign up for the event free of charge with the EDICOM promotional code (19721/16) or simply by filling in this form.

SAT reveals transition mechanism for Foreign Trade Complement

CFDI: comercio exterior

México’s Tax Administration Service (SAT) announced in late 2016 that version 1.1 of the foreign trade add-on for CFDI would come into force on March 1, 2017. Now, in a recent communiqué, it has confirmed that as of this date, versions 1.0 or 1.1 of the complement will coexist, and a facility has been set up for exports with CFDI and COVE, but without the add-on, during 2017. From January 2018, the only authorized version will be 1.1. Check out the General rules on foreign trade for 2017.

To meet the needs generated by changes in billing systems and foreign trade, a temporary mechanism has been set up to comply with the provisions of Rule 3.1.34 of the General Foreign Trade Regulations.

This means that those exporters having already completed implementation of the add-on (version 1.0 or 1.1), can engage in e-invoicing with the foreign trade complement and the order, stating the tax folio number of the invoice in the order.

Users who have not finished implementing the complement in either version, can use e-invoicing (without add-on), the return value (formerly COVE) and the order, stating the folio number of both documents (electronic invoice and return value) in the order.

Version 1.1 of the add-on includes a group of additional functions, including:

  • A node for use in final export operations of type A-1 goods, in cases where these goods are not subject to disposal, or if they are it is free of charge – in other words, without receiving payment in turn or being a sale –
  • Updating of the validation with reference to identification of product/s in several tariff fractions.
  • Updating the Catalogue of tariff fractions.
  • Incorporation of addresses for issuer and receiver.

How to adapt to the foreign trade complement?

EDICOM has worked hand-in-hand with the SAT to develop this CFDI add-on for exports. Thanks to this, the CFDI platform is now ready to issue e-invoicing with this update.

Sneak peek at all the CFDI changes for 2017

2017 comes with many updates and new features in CFDI and in several of its complements. The most significant change comes into force on 1 July 2017 with the new CFDI version 3.3 , but other upgrades will also be released on the same date, such as the  and new rules for CFDI cancellation.

Download the full infographic here, with all the changes in CFDI 2017.