How Electronic Invoicing Works in Costa Rica

Electronic invoicing in Costa Rica is regulated by the General Directorate of Taxation (DGT) to digitize and streamline tax processes. Its use is mandatory for all taxpayers, ensuring the authenticity, integrity, and traceability of every transaction. By enabling real-time validation through the DGT, this system enhances tax transparency and simplifies compliance with tax obligations.

The Evolution of Electronic Invoicing in Costa Rica

Costa Rica introduced electronic invoicing in 2017 with a pilot program targeting large taxpayers, led by the General Directorate of Taxation (DGT). The system was gradually implemented across different industries and economic sectors, becoming mandatory for all taxpayers in 2018.

Since then, taxpayers must issue and receive electronic invoices through the Ministry of Finance, which validates each document before approval. The DGT oversees regulatory compliance and ensures the system operates efficiently within the tax framework.

How the Electronic Invoicing System in Costa Rica Works

In Costa Rica, electronic invoicing is managed by the Ministry of Finance, which is responsible for receiving, validating, and issuing electronic invoices. These digital documents replace traditional paper invoices and are mandatory for all taxpayers.
For an electronic invoice to be fiscally valid, it must be approved by the Ministry of Finance. Without this validation, it cannot be used as proof for tax credits or deductible expenses. The electronic invoicing process follows a structured validation flow to ensure the authenticity and integrity of each transaction. Two key messages play a role in this process:

• Tax Authority Message: The Ministry of Finance’s response to the electronic issuer, indicating whether the invoice has been approved or rejected after reviewing its structure and content.
• Recipient Message: The recipient's confirmation of the invoice, where they can accept, partially accept, or reject it. This response must be submitted to the General Directorate of Taxation within the first eight business days of the following month, according to Resolution DGT-R-063-2018.

If an invoice is rejected, a new confirmation message must be generated with the necessary corrections.

Electronic Invoice Issuance Process in Costa Rica

This process ensures transparency and traceability in commercial transactions, improving efficiency in tax management.

• The issuer generates an XML file containing the electronic invoice and submits it to the Ministry of Finance for validation.
• The Ministry of Finance reviews the document’s structure and content and, within a maximum of three hours, issues an approval or rejection message.
• Once validated, the invoice is sent to the recipient along with the Ministry’s response.
• The recipient must review the invoice and submit a message of acceptance, partial acceptance, or rejection to the Ministry of Finance.

Electronic Invoices in Costa Rica

In Costa Rica, electronic invoices are digital tax documents used to record the sale of goods and services. Their use is mandatory, and they must comply with the requirements set by the Ministry of Finance to ensure transparency and transaction traceability.

These invoices must be issued in XML format, following the Ministry of Finance’s technical specifications. The system currently operates under Version 4.3, but starting September 1, 2025, Version 4.4 will become mandatory. This update introduces improved data accuracy, enhanced technological integration, and compliance with international standards, optimizing the electronic invoicing process in Costa Rica.

New Version 4.4 of Electronic Invoices in Costa Rica

The Ministry of Finance has established a transition period for implementing Version 4.4 of electronic invoices, in accordance with the General Resolution published in the Official Gazette. This process will begin on December 1, 2024, giving taxpayers six months to update their systems. Starting April 1, 2025, Version 4.4 will become optional, allowing businesses to gradually adapt. However, as of September 1, 2025, the new version will become mandatory, fully replacing the previous one.

One of the key updates is Transitory Provision II, which introduces new requirements for businesses that sell human-use medications. Beginning January 1, 2025, these businesses must upgrade their systems to Version 4.3 to include the mandatory fields "Medication Registration" and "Pharmaceutical Form." This ensures compliance with the Ministry of Health's regulatory requirements.

Another notable update is the introduction of the Electronic Payment Receipt, a new document designed to record transactions involving partial payments for credit sales or deferred payments. This receipt will complement, rather than replace, the requirement to issue an invoice at the time of sale.

Types of Electronic Invoices in Costa Rica

Costa Rica’s electronic invoicing system includes several types of electronic documents, each serving a specific function in business transactions:

• Electronic Invoice: The primary document used to record the sale of goods and services.
• General Electronic Invoice: Issued when the buyer does not request a specific invoice. It is reported using a Generic Tax ID to the Ministry of Finance.
• Export Electronic Invoice: Used to document the export of goods and services outside Costa Rica.
• Purchase Electronic Invoice: Issued by buyers when purchasing goods or services from suppliers who are not required to use electronic invoices. This document must be validated by the Ministry of Finance.
• Credit and Debit Notes: Used to correct errors, modify amounts, or cancel invoices and electronic receipts without altering the original document.
• Electronic Receipt: Issued exclusively for sales to end consumers.
• Acknowledgment of Acceptance or Rejection: Electronic messages used to confirm or reject an invoice, ensuring its validity for tax purposes.

Catalog of Goods and Services (CAByS) in Costa Rica

The Catalog of Goods and Services (CAByS) is a standardized classification system developed by the Ministry of Finance and the Central Bank of Costa Rica to uniformly categorize products and services sold in the country. This catalog organizes goods and services into hierarchical categories, assigning each a unique code along with the corresponding Value Added Tax (VAT) rate based on current regulations.

All taxpayers are required to include the CAByS code on their electronic invoices, specifically in the field labeled "Product/Service Code." This measure enhances tax accuracy, facilitates fiscal oversight, and ensures proper recording of commercial transactions within the electronic invoicing system.

Electronic Invoicing for Airline Ticket Sales

The General Directorate of Taxation has established specific regulations for issuing electronic invoices in airline ticket sales, applicable to airlines and IATA- and BSP-affiliated travel agencies. For direct sales made by airlines to end customers, electronic receipts must be issued within 48 hours and made available to passengers through the airline’s digital platforms, allowing travelers to access their electronic invoice whenever needed.

For sales processed through travel agencies on behalf of airlines, a different procedure applies. Airlines must issue a single electronic invoice per week for each travel agency, detailing the total number of tickets sold. This invoice must include the BSP billing report as a mandatory attachment.
Meanwhile, travel agencies must generate an electronic invoice for the end customer at the time of sale, specifying the ticket number and any other required details in accordance with the Electronic Invoice Regulations. Non-IATA accredited agencies follow the same process as airlines in direct sales, ensuring that passengers can generate their electronic invoice from the issued electronic receipts within 48 hours.

Electronic Signature and Invoice Storage in Costa Rica

Costa Rica’s electronic invoicing system requires security measures to guarantee the authenticity, integrity, and authorship of electronic invoices. To ensure this, every invoice must include an electronic signature, verifying the identity of the issuer and preventing any modifications to the document. Different signing methods apply depending on the type of taxpayer: digital signatures for individuals, electronic seals for legal entities, cryptographic keys issued by the Ministry of Finance.

Additionally, regulations require that all electronic invoices be stored digitally for at least five years. This ensures transaction traceability and compliance with tax regulations.

Requirements for Issuing Electronic Invoices in Costa Rica

To issue electronic invoices in Costa Rica, taxpayers must meet specific requirements set by the General Directorate of Taxation (DGT). These include registering with the Ministry of Finance, implementing security measures to ensure the authenticity of invoices, and using a compliant electronic invoicing system.

• Taxpayer Registration: Businesses and individuals must be registered with the Ministry of Finance.
• Issuer-Receiver Registration: Mandatory enrollment in the Virtual Tax Administration (ATV) system to start issuing electronic invoices.
• Cryptographic Key Acquisition: Required through the ATV system to digitally sign invoices and ensure their authenticity.
• Electronic Signature: Each invoice must include a digital signature backed by an internationally recognized certification authority.
• Electronic Invoicing System: A software solution that meets the technical standards set by the DGT.

EDICOM’s Global Electronic Invoicing Platform

EDICOM is a global leader in electronic invoicing and tax compliance solutions, providing an advanced platform that helps businesses automate the issuance and receipt of electronic invoices while complying with Costa Rican regulations. In Costa Rica, EDICOM’s solution streamlines the generation, validation, and submission of invoices to the Ministry of Finance, ensuring full compliance with the DGT’s requirements.

With cutting-edge technology, EDICOM’s platform optimizes administrative processes by automating workflows, reducing manual errors, and seamlessly integrating with ERP systems. Additionally, it provides secure electronic storage, allowing businesses to store and retrieve invoices for the legally required period.

As a specialist in electronic invoicing, EDICOM offers a scalable and adaptable solution that aligns with tax regulations in multiple countries. This allows businesses to operate efficiently and securely in international markets, ensuring full traceability and compliance with tax obligations.