The use of digital technologies to make governments more efficient and effective will be expanded in the coming years because the tax administrations in our region face the great challenge of adapting to the processes of business globalization and digitalization and to the transactions between taxpayers.
They will increasingly need technologies, processes and policies that allow the tax authorities to monitor the increasing number of transactions in the economy at an affordable cost to detect and prevent tax evasion and at the same time, keep the economic competitiveness of the companies and increase citizen satisfaction with their services.
The electronic invoice is just one of the first digital tools to make taxes a real tool for the development of Latin America and the Caribbean.
The implementation of the electronic invoice, in the way it has been successfully implemented in Latin America, this is: when there is a valid invoice standard for the national territory; tax administration has all documents; and, most of the documents are digitally signed (...), brings benefits for the tax administration and for the taxpayers (…)
Indirect benefits of the electronic invoice implementation, with effects beyond the tax environment:
Chile may be identified as the foundation of the market model in Latin America and its development. Other markets such as Brazil and Mexico are among the first to adopt and some of them surpassed Chile due to the strict mandates for the use of electronic billing in that country. Meanwhile, almost other countries in Latin America are fast evolving.
Mexico is the leading country in the world. In 2017, it will approach its objective of digitalizing all relevant processes for taxation. The electronic invoices for goods and services are an essential part of this digitalization. One of the last steps of deployment for electronic invoices will be the mandate for G2B and G2C invoices from mid-2017. After this step, Mexican organizations are expected to exchange more than 10 thousand million electronic invoices per year.
In addition to past and present activities related to the internal electronic exchange of relevant information on taxes, there are also projects in progress that consider cross invoices. Mexico intends to broaden the international acceptance of electronic invoices in the American continent. Therefore, the Mexican Tax Administration Service (SAT, as per its acronym in Spanish) is working with the tax authorities of several countries in Latin America, United States and Canada.
In Mexico, additional initiatives are being taken that go beyond electronic billing. Electronic accounting has become mandatory for companies and individuals.