Electronic invoicing has been talked about for several years now. In Latin America, countries such as Chile, Brazil, Mexico and Costa Rica have been pioneers in its implementation, where it has been welcomed as an opportunity for digital transformation. Its objective is to improve competitiveness between companies and collection efficiency. The country began to talk about the issue in 2019, but its implementation became mandatory with the promulgation of Law No.32-23 on Electronic Billing (Law No.32-23), on May 16, 2023.
If we review some basic concepts, we can define the electronic invoice as a document that records operations in a standard format (XML). It is issued, received and stored electronically. It fulfills the same purpose as a paper invoice, offering greater security and integrity of the information.
If we go to what is established by the Law, all taxpayers previously authorized by the General Directorate of Internal Taxes (DGII), who have a digital certificate for tax procedures, can be issuers and receivers of electronic tax receipts.
For the issuance of electronic invoices, the Law allows taxpayers to choose the system of their preference. This can be done through the DGII’s free invoice, contracting an electronic invoicing service provider or through the development of your own system.
The Law is very clear in terms of its objectives: to regulate the mandatory use of electronic invoicing and to establish entry deadlines for all taxpayers. The terms are segmented as follows, by type of taxpayer: Large National Taxpayers will have 12 months from the entry into force of the Law, Large Local and Medium Taxpayers, with 24 months from the entry into force of the Law. validity of the Law and Small, Micro and unclassified will have 36 months from the entry into force of the Law.
The recent publication of notices Nos. 07-23 and 08-23 by the DGII reiterate the deadlines previously established for each type of taxpayer. Large National Taxpayers are in the first category of obligated subjects, and must implement the electronic invoice no later than May 15, 2024.
To date, there are significant challenges. One of them will be to help all taxpayers understand this new electronic modality. The other will be to migrate to it in the most practical and efficient way possible.
We all know that the impact generated by the electronic invoice will be far-reaching, as it represents a radical change in the “traditional” issuance of the invoice. This change implies interacting with new information technologies, processes and terminologies. It is recommended that the migration be accompanied by an evaluation of the internal processes of each taxpayer. The advice of experts specialized in technology and tax matters will mitigate risks and provide confidence throughout the process.
Appropriately facing the implementation process of the electronic invoice is crucial to be able to continue operating without major setbacks.
—The author is Marguerite Brown
Tax and Legal Services Partner
Deloitte Dominican Republic