Innovations in Electronic Invoicing in Ecuador
The SRI kicked off 2023 with technical updates to the electronic invoicing scheme in Ecuador and modifications affecting the transmission and delivery processes of electronic documents to the country's tax authorities. Let's take a look into the reasons for these changes:
Extension of the maximum time for transmitting electronic documents to the SRI
Resolution No. NAC-DGERCGC22-00000064, published on January 13, 2023, makes modifications to Resolution No. NAC-DGERCGC18-00000233 dated June 5, 2018. The SRI has established the rules for the issuance, delivery, and transmission of sales receipts, withholding documents, and complementary documents issued by authorized taxpayers using the electronic invoicing model.
The main changes are concentrated in Article 7 of Resolution NAC-DGERCGC18-00000233:
"Art. 7 - Transmission. - Taxpayers issuing electronic documents must transmit them to the Tax Administration at the time of generating the electronic document or within a maximum of seventy-two hours from the generation using the 'web services' links specified in the technical documentation. This mechanism is used for sending, receiving, and validating electronic documents between the issuer and the Tax Administration."
Additionally, the following modifications are introduced:
- Elimination of the second paragraph of Article 7, which allowed the possibility of sending electronic documents in batches within a maximum of 24 hours after generating the electronic document.
- A Single Transitional Provision is added, stating that the 1% limit established in Article 8 of Resolution NAC-DGERCGC18-00000233 does not apply to pre-printed sales receipts, withholding documents, and complementary documents with authorization granted before November 29, 2022. These documents can be issued and remain valid until their expiration date, provided the taxpayer has authorization for electronic invoicing.
Update of the Technical Sheet for Offline Electronic Invoices
The Internal Revenue Service (SRI) of Ecuador recently published the new version of the Technical Sheet for Offline Electronic Invoices, version 2.23. This new version has been available for download from the SRI's website since February 2023. You can access the Guide for taxpayers on issuing electronic documents through the link provided in this text.
Here are the main mandatory changes introduced in this update to version 2.23 of the Technical Sheet for electronic invoices:
- Update of the maximum amount for issuing an invoice to the final consumer. The amount is reduced from 200 to 50 USD for the mandatory request of personal data from the buyer on electronic invoices.
- Update of ISD withholding percentages: The withholding percentages for the Foreign Exchange Tax (ISD) are established for the period from February 1 to December 31, 2023, as stipulated in Executive Decree No. 643 of January 23, 2023.
- Update of Table 18: ICE rate.
Electronic Invoicing Obligation in Ecuador Nearing 100% of Taxpayers
The requirement for the final set of taxpayers impacted by the electronic invoicing program in Ecuador became enforceable on November 29, 2022. With these final groups, the schedule of taxpayers required to issue electronic documents was completed.
The Ecuadorian SRI highlights the significant achievement and widespread use of electronic invoicing. They are close to finishing the implementation plan that commenced in 2014, starting with exporters and financial institutions.
At present, 1,325,541 taxpayers are actively using electronic invoicing, and 12,581 more are in the testing phase before transitioning to electronic invoicing. According to the Internal Revenue Service of Ecuador, since the start of electronic invoicing mass adoption, 14,981,421,491 electronic documents have been issued.
Electronic invoicing is fully integrated into Ecuador's fiscal system, entering a stage of maturity, similar to what has occurred in other Latin American countries such as Colombia, Mexico, Chile, or Brazil, where the system's future is focused on updates and improvements aimed at extending electronic fiscal documents to an increasing number of documents possible to be exchanged.
How Does Electronic Invoicing Work in Ecuador?
Luz García, our expert on Electronic Invoicing in Ecuador, explains how the electronic invoicing model works in Ecuador and the advantages and capabilities of a solution that automates the issuance and reception of electronic documents, easily scalable to any region in Latin America.
Features of EDICOM's Global Electronic Invoicing Platform
- Integration Module: This module creates links with the internal management system to combine the generation and reception of invoices.
- Schema Validation Module: Issued and received invoices are analyzed and syntactically validated to ensure compliance with the technical specifications required for each electronic invoice model.
- Compliance Module: Harmonizes the technical and legal requirements set forth by diverse invoicing systems in various countries.
- Communication Module: The communication module identifies the recipient of the electronic document and automatically delivers it, routing it through the agreed communication protocol with the receiver and reporting control ACKs that allow the sender to always know the status of the message.