Latin America takes the lead in E-invoicing

E-invoicing is growing rapidly in Latin America

E-invoicing is becoming more common across the Latin American continent, which is the case within the B2B, B2G, G2B, and B2C segments. Therefore, Latin America takes the lead in E-invoicing, which is pushed by the public sector.

If you do business in Latin America, you must be aware of the new e-invoice requirements.

This means that corporations operating in Latin America must ensure that electronic documents are correctly handled in the relevant XML format.

XML format for e-invoices in Latin America for Consumer and B2G segments

More than 20 billion electronic invoices/bills were sent combined from Latin America in 2020. That puts the continent in the leading position regarding the sum of e-invoices/billings sent from both the Consumer and the Business-to-Government (B2G) segment.

If you do business in Brazil, Chile and/or Mexico, you will need to send your e-invoices in the relevant XML format, because different countries use different formats within the XML structure:

• Brazil uses the NF-e (Nota Fiscal Eletrônica) format
• In Chile, they use the DTE (Documentos Tributarìos Electronicos)
• In Mexico, they use CFDI (Comprobante Fiscal Digital a través de Internet)

Example of a Brazilian invoice in the NF-e format, 2021, source.

Electronic tax reporting and e-invoicing in Latin America are pushed by the public sector

Electronic tax reporting and e-invoicing are being pushed by the national public sectors in Latin America. One of the main reasons is that it allows tax authorities real-time audits and the ability to do invoice data mining to combat tax evasion.  

That is creating a group of front runners among Latin American countries regarding e-invoicing. Argentina, Brazil, Chile, Uruguay, and Mexico are already market leaders, and other countries are following. Among those are the Dominican Republic, El Salvador, Honduras, Panama, Paraguay, and Peru.

The exchange of all financial documents in an electronic format is the next step in invoice-related digitalization.  

International E-Invoicing Market 2020, Billentis

Is the PDF format an e-invoice?

Most people would probably say no since a PDF file is not a structured format and cannot be processed automatically. However, with a standard software for Document Management, such as Lasernet, corporations will be able to process a PDF file and convert it into an electronic format.

In Germany, they use the format ZUGFeRD where the XML file is sent as a PDF file. The Lasernet software can take the PDF file and convert it into a standard XML text file for further processing. It can also do this process in reverse, i.e., taking an XML file and converting it into a PDF file.

Due to Lasernet's ability to convert files to and from PDF and XML formats, you can use the PDF format for e-invoicing if you are operating in Latin America. 

With a standard Output Management software like Lasernet provided by Tabellae, e-invoicing can be easy, fast, and cost-efficient while ensuring the correct regional formats are followed.

Want to know more about e-invoicing in Latin America?

If you have questions about e-invoicing in the Latin American countries or how your corporation can benefit from a e-invoicing solution for the Latin America market, please Den här e-postadressen skyddas mot spambots. Du måste tillåta JavaScript för att se den..

Sources:
E-Invoicing / E-Billing Billentis report from 2020
Edicomgroup.com
Tfig.unece.org