As a region, Latin America is a world leader in electronic invoicing. From the Executive Secretariat, we have been repeating it in various forums and in more than one language in different continents. It has been recognized by market analysts, academics, private companies and, indeed, by tax administrations around the world. However, time passes, new players participate, and there are evolutions and developments successful or very promising elsewhere in the world. The immediate information system of the tax agency is a good example. Since we are close to January 1, it seems appropriate to review what the region is doing in terms of electronic documents.

Some countries start running

This year, Panama and Paraguay start invoicing electronically. In Panama, where the first electronic invoices were received at the tax administration in September, an operational model with prior validation for business-to-business (B2B) operations and subsequent validation for end consumer (B2C) operations has been implemented.

Paraguay launched its pilot program in March, and welcomed the news that the fourteen companies participating in the pilot project successfully sent their electronic invoices on the first day of the pilot program in November.

Bolivia published the regulation stating that from March 1, 2019, it will start its electronic invoicing system. The Dominican Republic expects to implement its pilot project in the first half of next year.

El Salvador, with financial support from the IDB, hopes to begin assembling its project in the early months of this coming year.

Others are accelerating the pace

Colombia has incorporated many of the large taxpayers, already reaching more than three thousand taxpayers using electronic invoicing, with 20 thousand other taxpayers ready to start. They have already generated more than 60 million of electronic invoices. More than 13 million purchasers have already received an electronic invoice in Colombia. DIAN is working to implement a comprehensive model with a clearance model with prior validation. This one will start operating next year.

In Costa Rica, the use of electronic invoicing is now mandatory for all taxpayers, the last segment entered last November 1. At this time, they are receiving about one hundred million documents per month, twenty times more than what they received at the end of last year. “Pure Life” is the country’s motto.

Guatemala is changing its electronic invoicing system to start receiving the documents directly on-line from service providers or taxpayers that have certified their systems. On November 2, the system of electronic invoicing was put into production with some private certifiers authorized by SAT, and at this time, they have already authorized four certifiers. On December 12, the possibility will open of sending electronic invoices using the SAT Virtual Agency for issuing invoices, using an online form oriented to small taxpayers.

Peru is migrating to the latest version of the UBL format that is used in the country. In March 2019, they will be incorporating 170 thousand additional taxpayers as electronic invoicing users and they will start using OSE (private certifiers authorized by the SUNAT). Along with Mexico and Guatemala, Peru will be the third country to adopt this model for authorizing documents.

Argentina is implementing a mechanism that allows taxpayers selling to final consumers to abandon the fiscal printers or machines and to implement online electronic invoicing. In addition, as mentioned by Marcelo Costa at the Summit in Lisbon, they have recently implemented the “electronic voucher”. This is for the meat related products, a key economic activity of the country that had historically presented significant challenges in some links of the distribution chain.

Brazil implemented its mechanism of factoring based on the electronic tax note, with results that are downright impressive, becoming, to my knowledge, the second country with a factoring solution supported from the tax administration. To date there have registered for factoring more than 39 million invoices totaling more than 195 billion reais (50 billion dollars). In addition, expanding the use of electronic documents, they have incorporated the full BP-e ticket for the transport of passengers within the country, and the new NF3E electronic invoice will be implemented for services, energy and communications, overcoming an historical resistance.

In 2017, Chile implemented the preparation of purchases and sales registries and the pre-filled VAT return, which is currently accepted, unmodified, by ninety-two percent of taxpayers, representing 90 percent of VAT collection. This is simply spectacular. Minister Larraín announced in June that VAT evasion had fallen for the first time below 20 percent, attributing the results in good measure to the full implementation of electronic invoicing. In addition, the SII made available to taxpayers who use the free system, a mobile application to issue and verify electronic invoices.

The success in the proposed pre-filled tax return in Chile for the taxpayers of the general regime has certainly inspired others. We know there are intentions and specific projects to begin offering a pre-filled VAT return. There is a kind of contest to imitate the success of Chile, let us see who will be second, and motivates the title of this post, a race to the top.

In Ecuador, since mid-year the SRI sends via email to all issuers of electronic invoices, a consolidated total sales summary, with receipts, taxable income and withholdings before the due date for filing the tax return. They have implemented the pre-filled withholding statement from electronic documents and expect that from January next year, the pre-filled VAT return for taxpayers in the general regime. In addition, next year, a mechanism for the automatic refund of VAT for the elderly and for people with disabilities without need for application should start operating. An administration’s service that undoubtedly will trigger a smile for some senior citizen.

From November 1^stt, 2018, Mexico put in place the scheme of cancellation of invoices with acceptance from the receiver, mandatory for operations of more than five thousand pesos, provided the recipient possesses an electronic signature. In addition, in November was also implemented the so-called viewer of annual payroll statement, not from consolidated summaries declared by employers, but via periodic payment vouchers received by each worker. By using this information, along with electronic invoicing data and crossings with other sources, according to the information shared with us by Fernando Cadena at the Lisbon’s summit, the SAT managed to perform two million electronic audits.

As if we were witnesses of a marathon, we can confirm that there is race, a good one indeed, in our region to do more and more with the electronic invoice. A good time to question: That first sentence of this post is still valid? What do you think?

Finally, Uruguay has a consolidated electronic invoices and is working in challenging and interesting projects for next year whose details can not yet be shared.

Greetings and Godspeed.

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