How To Invoice Electronically In The Dominican Republic

The Implementation of the E-Invoicing Law through Decree 587-24

The Government of the Dominican Republic has taken a key step in implementing electronic invoicing by issuing Decree 587-24, regulating key aspects of Law No. 32-23. The decree details include:

• Voluntariness and Scheduling for All Taxpayer Classifications
• Scheduling for State-Owned Enterprises and Government Entities to Issue Electronic Invoices
• Role of the Electronic Invoice Service Provider (PSFE): Overview of responsibilities and services provided. The DGII as the certifying entity (for issuing signature certificates).
• Detailed Description of Deferred ECF Sending Models and Contingency Mode: Includes incentives and support for taxpayers.

“Ley General de Facturación Electrónica 32-23” in the Dominican Republic has been enacted, which came into effect on May 16, 2023. This law establishes the following dates for the mandatory implementation of Electronic Invoicing according to the type of taxpayer:

• Large Taxpayers: 12 months from the effective date.
• Local and Medium-sized Large Taxpayers: 24 months from the effective date.
• Small, micro, and unclassified Taxpayers: 36 months from the effective date.

Furthermore, it is stipulated that, to ensure a smooth and orderly implementation within the timeframe established by the law, a phased approach has been established for National Large Taxpayers, which is as follows:

• Group 1: January 15, 2024.
• Group 2: March 15, 2024.
• Group 3: May 15, 2024.

To find out the assigned group for the implementation of electronic invoicing, it is necessary to access the DGII website at www.dgii.gov.do, go to the "Billing" or “Facturación” section, then the "Electronic Invoicing" or “Facturación Electrónica” subsection, and consult your RNC (Taxpayer ID) in the provided link for this purpose.

Basic information for electronic invoicing in the Dominican Republic

The Dominican Republic's e-invoicing process began in February 2019 with a pilot phase in which 11 large companies participated. Among the participating companies was Philip Morris, which issued the country's first electronic invoice through EDICOM's Global e-Invoicing platform. 

Now that the pilot project has been completed, the electronic invoicing system is in the voluntary phase, so that those taxpayers who meet the requirements established in the regulation issued by the Directorate General of Internal Taxes may begin to issue Electronic Tax Receipts (e-CF).

To be able to invoice electronically in the Dominican Republic, taxpayers must have been previously authorized by the DGII. Taxpayers must send the tax vouchers to the DGII for their accounting for tax control purposes. To check if the e-CFs have been correctly received by the DGII, taxpayers must enter the DGII website and check if their status has been accepted or rejected.
 

What are e-CF Electronic Tax Receipts?

Electronic Tax Receipt is the name given to electronic invoices in the Dominican Republic. An e-CF is a digitally signed electronic document that certifies the transfer of goods, delivery in use, or the rendering of services.
In addition to the e-CF, the law also contemplates the issuance of other electronic vouchers such as:

• Electronic Tax Credit Invoice (Type 31)
• Electronic Consumption Invoice (Type 32)
• Electronic Debit Note (Type 33)
• Electronic Credit Note (Type 34)
• Electronic Purchase (Type 41)
• Minor Expenses Electronic (Type 43)
• Special Regimes Electronic (Type 44)
• Government Electronic (Type 45)
• Export Electronic (Type 46)
• Foreign Payments Electronic (Type 47)

To differentiate them from the current paper invoices, e-CFs are identified with a numerical sequence starting with the letter E followed by the type of e-CF.

The standard format chosen by the DGII has been XML.

Who can issue Electronic Tax Receipts?

Any taxpayer authorized by the DGII to issue Electronic Tax Receipts (e-CF).
Requirements to be an issuer of electronic tax receipts:

• To be registered in the National Registry of Taxpayers (RNC).
• Be up to date in the fulfillment of your tax obligations and formal duties.
• Be authorized to issue tax receipts.
• To have a digital certificate for tax processes, issued by a trust service provider (certification authority) that corresponds to the person who will act on behalf of the taxpayer.
• To have software for the issuance of Electronic Tax Receipts (e-CF), which can be developed by your company or acquired through an electronic invoicing software provider certified by the DGII.

Obligations of electronic issuers

• Incorporate their current Digital Certificate in all e-CF issued.
• Issue the printed representation of the e-CF when required by a non-electronic receiver.
• Receive all validly issued e-CFs from their suppliers.
• Exhibit to the DGII all digital or physical information that may be required, in accordance with the provisions of the Tax Code.
• Keep the e-CFs in accordance with the provisions of the Tax Code, which establishes a minimum of 10 years.

Who can receive Electronic Tax Receipts?

Those taxpayers authorized to issue e-CFs, i.e. all electronic receivers are in turn electronic issuers.

EDICOM's e-invoicing platform in the Dominican Republic

EDICOM's global e-invoicing solution meets the technical requirements of the Dominican Republic's tax authority for issuing and receiving electronic tax receipts. The invoicing platform enables the generation of digitally signed e-CFs in XML format to be sent to both the DGII and the recipients of the vouchers in an integrated way in the management system. The process is carried out immediately and automatically, totally transparent for the user.

EDICOM is a specialized supplier of electronic invoicing solutions. It currently operates in more than 70 countries around the world and offers electronic invoicing and compliance services throughout Latin America. EDICOM guarantees compliance with the requirements of each system, both technical and legal.

Electronic invoicing is the driving force of the Dominican digital economy

With the implementation of the electronic invoicing system, the Dominican government seeks to have better tax control and facilitate compliance with the tax obligations of taxpayers. In this way, the government has decided to follow in the footsteps of other Latin American countries such as Argentina, Brazil, Chile, and Mexico who have achieved great benefits after its implementation.

Electronic invoicing in the Dominican Republic will not only result in improved tax collection for the country but will also make its economy and businesses more competitive in a digitized global environment and in Latin America at the forefront of electronic invoicing.
With this digital transformation, the Dominican Republic becomes the first Caribbean country to implement electronic invoicing, following in the footsteps of most Latin American states. The LATAM market is the most advanced in invoicing worldwide, concentrating most electronic invoices issued in the world.