Latin America is one of the fastest growing and challenging markets for Invoicing
For some time now, several Latin American countries have mandated electronic invoicing compliance regulations that are dictated by taxation or government authorities for each specific country.
Mexico, Argentina, Colombia, Peru, and Chile’s E-Factura follows Brazil’s Nota Fiscal Eletrônica, where local government entities have required companies to replace standard paper invoices with electronic invoices, as you can see below here are some of the unique mandates as listed per country specific requirements.
Mexico
• Electronic Invoice (PI and eDocument)
• Foreign Trade Complement
• Payment Complement
• Electronic Accounting
• DIOT report
• Deferred taxes process and report
Argentina
• Electronic Invoice (PI)
• Provinces perceptions regimes
• Sales and Purchase regime reports
• VAT report
• Withholdings report
Colombia
• Electronic Invoice (eDocument full solution)(for outbound and inbound e-invoice)
(New adopters for 2018 and mandatory for 2019)
• Magnetic Media reports.
Chile
• Electronic Invoice (eDocument full solution and basic solution) (for outcoming and incoming DTE)
Peru
• Electronic Invoice (eDocument full solution and basic solution) (for outcoming e-invoice)
• eDocument Solution covers the electronic transmission of the XML files for these processes for Peru:
o Transmission of Single Invoice/Debit Note/Credit Note.
o Transmission of Boletas Daily Summary.
o Void Document (cancellation).
o Withholding certificate.
The primary drivers for implementing e-invoicing compliance in these Latin American countries are as follows:
- Promoting a more transparent relationship between tax authorities and taxpayers to ensure that tax authorities can maximize their respective tax revenue
- Eliminating tax evasion and preventing unfair competition
- Speeding up and improving the tax inspection processes
- Rationalizing, standardizing and consolidating the accessory obligations required of taxpayers
- Reducing the cost of taxpayers’ accessory obligations
- Protecting the environment by reducing the use of paper
Each of these Latin American countries has unique processes that are defined by the respective local government authorities. Non-compliance can have severe consequences such as penalties, fines, interruption/halt of supply chain activities, and in rare cases, even jail time for company representatives.
eDocument Solution for LATAM Countries
The eDocument Framework is a SAP solution for managing electronic documents that have legal compliance aspects. The eDocument country-specific solutions are built on top of a global framework that is provided by SAP.
SAP harmonizes the increasing number of country specific approaches that are considered “country specific” into a uniform framework lowering overall complexity and day to day management.
The SAP eDocument Framework has been developed by SAP Globalization Services and helps to transform documents created in various SAP applications into predefined exchange formats and transfer it electronically to external systems, such as legal entities or tax authorities.
The SAP eDocument Framework facilitates the realization of different local requirements by:
- Leveraging their similarities
- Ensuring high standards
- Providing consistent user experience and reduce operational costs
Origen e-Invoice Solutions: reduce operational costs in Latam countries
As an e-Invoicing innovator and integrator for companies that run SAP for Latin American operations, Origen has experience with implementing e-Document Framework for companies that operate in Latin America and have to manage different mandates across the region. With the growing demands of e-billing and e-invoicing, Origen enables compliance while maintaining the SAP inherent country version to maximize SAP cross-functional ROI and strategy.
The Origen E-Factura suite simplifies the process of adopting e-Invoicing for the Latin America region and reduces operational costs and efforts to maintain compliance. You can send and receive legally compliant, digitally signed invoices electronically and in the formats your business and partners require.
In addition to connecting you with partners, the solution architecture facilitates compliance and optimizes your internal resources for maximum ROI.
The Tigre Case
One of the cases of e-Document Framework implemented by Origen was from the Brazilian multinational company Tigre in Peru. The company needed an SAP solution to comply with the local electronic billing regulations. The solution implemented by Origen allowed Tigre Peru key users the creation of electronic documents originated in documents previously created in SAP applications (FI and SD).
The system enables the electronic document to be downloaded and subsequently processed within the solution. This electronic document solution required the implementation of a customized development for the purposes of mapping the data legally required by the XML format and to be able to send the electronic document to the system of the tax authorities or a third party.
Tigre obtained several benefits, such as consistency with each country fiscal standards, validation functions, unique communication platform and central data repository. Other benefits were:
- Native system integration / security / potential fiscal platform repository;
- Centralization of data to deliver the legal/fiscal obligations and
- Validation of electronic documents or e-Invoices
As results, the company achieved:
- Customer retains control over mappings
- Validates legal requirements, authenticity and the end-to-end data integrity.
- Offer compliance services such as delivery, long-term archiving, certificate management, etc.
- Country compliance
To learn more about eDocument and how it ensures compliance and reduce operational costs in Latam countries, contact us!
Photo by Beatriz Pérez Moya on Unsplash
