Here we document the electronic invoice implementation success stories of Latin America, describing their main features, impacts and benefits for public and private users.
In mid-2002, the Internal Tax Service (Servicio de Impuestos Internos), SII, as per its acronym in spanish, convened a group of companies to form a public-private alliance to carry out the electronic invoice implementation.
Later, in 2003, the Chilean regulations of the electronic invoice were published, with the following particular elements:
In the Electronic Invoice implementation
Model agreed with the private providers
Availability of a free billing system
Political authority’s Commitment
Cryptographic safety and digital signature
Adherence to large billers
Establishment of incentives for its use
Permanent and agreed communication plan
Incorporation of new technologies for data processing
(Big Data, BI, IA)
Electronic Invoice Operating Model in Chile
DTE (Electronic Tax Documents, as per its acronym in spanish): Invoices and others DTE B28 are sent to SII/Tickets (B2C) are not sent to SII.
Source: BARRAZA, Fernando. SII National Director. Electronic Invoice Model Presentation in Chile. December 2017
According to Fernando Barraza, SII National Director in Chile, the main benefits identified are:
Since 2014, Chile gradually scheduled the implementation of the electronic invoice enforceability in three stages, in accordance with the profile of the legal entities of its register.
The last stage of implementation took place on February 1, 2018.
Since the creation of the Electronic Invoice, SII has established the certification of the “Electronic Tax Services Provider”, PSTE, to which electronic invoice solutions providers, who comply with the established requirements in the Chilean tax regulations, may apply.
With such accreditation, Electronic Tax Services Providers are empowered to manage, before the SII, the expedite incorporation of its customers in the electronic invoice system, carrying out a special procedure, which enables them to perform the certification process of the invoice on behalf of the customers.
Figures overview at the closing of 2017:
Authorized Companies in Electronic Invoice Evolution
Accumulated issuance of documents
Type of application used in Electronic Invoice
January 5, 2004
An amendment of the Tax Code (Código Fiscal) is published in the Official Gazette of the Federation incorporating reference to Digital Tax Receipt, CFD, as per its acronym in Spanish.
May 31, 2004
Exhibit 20 of the Miscellaneous Fiscal Resolution with the technical CFD standard is published.
The first CFD version 1.0 is issued.
CFD evolves to version 2.0.
CFD migrates to version 2.2.
The online Digital Tax Receipt, CFDI, in version 3.0 is born.
CFDI evolves to version 3.2.
CFD scheme concludes.
CFDI version 3.2 becomes the only valid version of electronic invoice.
CFDI evolves to version 3.3
On January 5, 2004, the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público), SHCP, as per its acronym in spanish, publishes in the Official Gazette of the Federation the scheme of the Digital Tax Receipt, which comes into force on the same year. On May 31, 2004, the Exhibit 20 with the first technical standard of the Digital Tax Receipt is published.
Although this initiative had been initiated in other countries, the Mexican version of this model took certain elements into account that in the end would allow thousands of millions of transactions per year to grow. Between the key elements for the scheme extension, we can emphasize three:
Regarding this third issue, it is important to mention that SAT was aware of the importance of creating a market for generation of electronic receipts solutions. In fact, the first authorizations were not given for “self-consumption”, but rather, for companies that provide these services.
Among the definitions to invite suppliers to participate, whose original modality was known as PACFD (Authorized Provider for the issuance of Digital Tax Receipt), was to validate their capabilities to be able to create documents in a technical manner and have a high availability scheme
Beyond the creation of documents, what was really at stake was:
The limited capacity that the SAT would have to be the only interface with millions of taxpayers
Since the beginning, SAT predicted that in order to achieve a critical mass of electronic invoice issuers, the participation of suppliers was needed to allow the unfolding of the scheme to all taxpayers.
Having made the decision since the beginning, led to the success that the authority holds today. Currently, the tax changes (tax and/or technical concept) are transferred and clarified to a controlled base of Authorized Providers, whom at the same time, replicate it to millions of users. Likewise, there is a supervised technical communication with this supplier base with all the safety measures, which would be almost impossible to do with thousands or tens of thousands of taxpayers, without mentioning the effort of millions of taxpayers.
Step by step the path was created, but the reality is that nowadays, Mexico is the only country in the world where all tax receipts are electronically issued. This represents millions of taxpayers and thousands of millions of receipts per year.
Mexican Tax Administration Service, (SAT, as per its acronym in spanish)
CIAT´s 48th General Assembly
Rio de Janeiro, Brazil 2014
"In the implementation of the Electronic Invoice scheme a close collaboration with groups and different sectors of taxpayers was essential, which allows ensuring compliance of new provisions without altering its operations and allowing information exchange to the effect that standards are consistent with the expectations of the authority and the actual operation of the taxpayer. Collaboration between the authority and the private sector has yielded good results and allows the provisions be accepted by the Taxpayer.
In the Mexican SAT, the formation of work groups with private sector groups on tax receipts, mainly deals with three main aspects:
Normative. Eases adaptation and normative regulation of the implementation of electronic invoice, and allows the establishment of incentives and normative criteria for a correct compliance by the Taxpayers.
Technological. Allows the tax authority to get to know the opinion of the taxpayers regarding technological support capabilities and standards of both the issuer and the receiver of the Tax Receipt. Defining and regulating technological supports and digital infrastructure, supporting in this way, the use and application of networks in favor of a fast and correct emission scheme.
Dissemination. Standardize the relevant information, to achieve a uniform and concise dissemination scheme, creating multiple contact and dissemination channels in collaboration with the private sector.
To carry out a consensus with the private sector on solutions to specific problems and receive feedback on possible amendments or new regulations, allows the Tax Administration to anticipate possible interrogations and difficulties that specifically arise from the billing process.
The collaborative work between authority - private sector, allows optimum decision-making on how to regulate the correct tax compliance and the technological ability of the Taxpayers; meaning that before establishing a tax obligation, you must know the Taxpayer."
Electronic invoice evolution in Mexico