Why are more and more countries incorporating electronic invoicing? Here we share the benefits and how to successfully adapt to the norm.
An electronic invoice is a tool that, in addition to contributing to the digital transformation of tax administrations, helps to combat tax evasion and provide greater transparency. Latin America leads the world in its implementation since almost 70% of the countries have incorporated it.
In this article, we tell you why to adhere to the electronic invoicing system and how to adapt to the norm effectively without running the risk of penalties for non-compliance.
Why are more and more countries betting on electronic invoicing?
Electronic invoicing began to be implemented in the 90s. The objectives of this action are to control tax evasion, achieve tax transparency and develop the digital transformation of tax administrations. This original idea was progressively extended to other areas such as transit control of goods, payroll, or new services.
But e-invoicing has not only improved the tax administrations’ revenue collection. It has also benefited taxpayers by making their accounting easier, more efficient, and more accessible.
If we look at the situation in Latin America, in 2003, Chile was the first country to implement this tool. Today the region is a world leader in the implementation of e-invoicing, as 70% of tax administrations have implemented it or are in the process of implementing it.
Source: Billentis Market Report 2018
Since no two invoicing systems worldwide are the same, the solutions such as Coldview Electronic Invoice must be tailored to the specific requirements of each country. In response to this, the international community is planning to create a single platform for cross-referencing information and thus combating tax evasion. There are even plans to develop an international electronic invoicing system to find out where taxpayers’ income comes from. A project that, if implemented, will bring benefits to nations around the world.
Electronic invoices in Latin America and their implementation in the region
In the last two decades more than 15 Latin American countries have implemented invoicing as a strategy to combat fraud and facilitate tax compliance.
Here are some interesting facts about the application in the region.
Electronic Invoice and Carta Porte: the importance of control in the movement of goods
As mentioned above, Latin American governments have seen the potential of electronic invoicing for controlling the transit of goods.
As a result, more and more countries are requiring the Carta Porte in the transportation of goods. The Carta Porte is a legal instrument of declarative nature, where all the details related to the movement of goods in the national or international territory are included. This document was created as a complement to the electronic invoicing, as it provides more complete information in real-time on the goods being moved.
For example, in Brazil, since 2014 the tax administration has required the MDF-e (or Manifesto Eletrônico de Documentos Fiscais). This is such a sophisticated system that in most cases it is not necessary to stop trucks to verify the existence of the document.
The most recent case is that of Mexico, where the tax administration (SAT) requires the CFDI with the Complemento de Carta Porte to move goods by road, rail, air, or river. The Mexican government saw this instrument as a valuable resource to combat the scourge of smuggling. According to the Servicio de Administración Tributaria (SAT), around 60 percent of the goods moved by land in Mexico are illegal.
The Complemento Carta Porte will be mandatory as of January 1, 2022. As it is one of the most sophisticated systems in the region, Mexican taxpayers face the enormous challenge of complying with the norm. Because in order to comply, a lot of information is required, and to achieve this it is vital to have a specific solution. For example, Coldview Carta Porte has a Carrier Portal that facilitates the task of those who are in charge of the shipment and prevents the company from being exposed to penalties for non-compliance.
5 Benefits of e-Invoice for businesses
Now, what are the benefits of invoicing software for organizations?
As mentioned at the beginning of this article, the challenge is to find a provider that offers a solution according to the norms and standards required by local authorities. Not to mention if it is a company that operates in different countries in Latin America, since each administration has its own particular requirements.
That is why we created the Coldview Electronic Invoice solution, which offers organizations advantages such as
It is possible to comply with the regulations and obtain multiple benefits for the organization. It is just a matter of having a solution that not only adapts to the regulations of the country or countries in which you operate but also to the characteristics of your organization.
We know how to accompany you in this process. Write to us and we will tell you.
- Alberto Barreix, Raul Zambrano, editores. (2018). Factura electrónica en América Latina. Banco Interamericano de Desarrollo (BID) y Centro Interamericano de Administraciones Tributarias (CIAT). URL