How the Online Electronic Invoice System works - FEL de Guatemala

Guatemala is on the verge of finalizing the migration to the new electronic invoicing system called Online Electronic Invoicing System - FEL defined by the Superintendence of Tax Administration - SAT.
 

From FACE to FEL

The electronic invoice in Guatemala is advancing in the direction of the model outlined in the SAT Board Agreement number 13-2018 and its revisions. It denotes a change from the FACE model, which was put into place in 2011, to the FEL model. On July 1, 2023, the FEL regime will officially become the only one permitted to provide tax documents to individuals who register for the first time to conduct an economic activity.

Since 2019, taxpayers have been gradually integrating into the new FEL system per the SAT's schedule or voluntarily if they so choose, without having to wait for the date on which their sector is included.

Since its start in 2007, the electronic invoicing model has experienced adjustments.Among the most significant changes from the prior FACE tax system should be noted are the following:

- The removal of the invoice copy entirely. In other words, the GFACE is no longer required to receive the invoice data.

- On the other hand, the electronic signature will be mandatory in electronic invoices, as a mechanism of authenticity and non-repudiation of the same.

- Thirdly, SAT is in charge of keeping all bills on file. The XML file must still be kept by issuers and receivers for the duration specified by the Tax Code despite this. The XML files of the certified DTEs and the corresponding acknowledgments of receipt from SAT must also be kept by the certifiers.

Electronic Tax Documents - DTE's

Electronic tax documents are, as the word indicates, documents that accredit a commercial transaction in electronic form. 

Types of DTE’s:

•  Invoice, Exchange Invoice, Small taxpayer exchange invoice, Small taxpayer invoice, Special invoice, Credit note, Donation receipt, Receipt, Debit memo, Credit memo.

Changes in the Export Complement

The SAT has announced a change that impacts all exporters. This change pertains to the export complement and affects all exporters, regardless of whether they issue a provisional invoice or not.

Key changes include:

Two conditional fields have been added, independent of the provisional invoice:

• LugarExpedicion
• PaisConsignatario

Four conditional fields have been added (affecting only those exporters required to issue a provisional invoice):

• NumeroAutorizacionProvisional
• SerieDocumentoOrigen
• NumeroDocumentoOrigen
• NumeroDeclaracionMercancias

New Provisional Invoice Complement

The Superintendence of Tax Administration (SAT) of Guatemala has introduced new rules and validations for the issuance of electronic invoices, highlighting the inclusion of the Provisional Invoice Complement (FACP). This development is particularly important for the export sector, especially for those handling perishable products with short shelf lives.

What is the Provisional Invoice (FACP)?

The Provisional Invoice is a document that supports export transactions when the definitive exportation is not yet available. This complement is crucial for exporters of food and other perishable goods that require expedited documentation for international commercialization.

Implementation and Go-Live Date: The official go-live date for the FACP is scheduled for May 31, 2024, despite the lack of a specific decree or law for the provisional invoice.

Does the FACP replace the Export Invoice? No, the FACP is provisional and does not replace the issuance of the corresponding Export Invoice, which must be issued at the time of the effective delivery of goods received by the recipient abroad.

New Technical Annex 1.7.69 - "Provisional Invoice (FACP)" and Changes in SAT Validations

The Tax Administration Superintendence (SAT) of Guatemala has announced the introduction of a new document type called "Provisional Invoice (FACP)." This addition entails a series of modifications and additions to the system validations, aimed at integrating and properly regulating the issuance of this document within the tax framework. The specific changes made are detailed below:

• Validation 6 is added to section 2.2.1 – Date and time of issuance.

• Validation 9 is added to section 2.2.2 – Issuer's Tax Identification Number (NIT).
• Validation 2.2.4, case 6 is modified to include FACP.
• Validation 2.2.4, case 11 is modified to include FACP.
• Validation 2.2.5, case 6 is modified to include FACP.
• Validation 26 is added to section 2.6.1 – Validation of phrases.
• Validation 2.19.1, case 2 is modified to include FACP.
• Validation 2.19.2, case 4 is modified to include FACP.
• Validation 2 is added to section 3.11.1 – Provisional DTE Authorization Number.
• Validation 3.13.1, case 4 is modified to include FACP.

SAT Recommendations for Taxpayers

According to OFI-SAT-IRE-339-2024, Guatemala's Tax Administration (SAT) has reiterated a series of important recommendations to help taxpayers correctly and efficiently issue electronic invoices. Recommendations:

• Basic service providers: When the issuer is a provider of basic services such as electricity, potable water, and telephony, the address of the recipient must be added in the corresponding field. This information should not be included in the addenda.
• Description Field: When using the description field on the invoice, ensure that the information matches exactly what is transmitted to the SAT and what is provided to the client upon delivery of the Electronic Tax Document (DTE). This is critical to prevent inconsistencies and issues during SAT verification.

Deadline for Compliance:
All taxpayers are kindly requested to take these guidelines into account and complete the necessary actions by July 31 of this year to minimize disruptions and enhance efficiency.
These recommendations aim to streamline electronic invoice management and ensure compliance with established regulations.

SAT Updates -  Inactivation of VAT Registration

The Superintendence of Tax Administration (SAT) has notified that there are taxpayers who have failed to submit their VAT declarations. This situation has legal implications and specific procedures that taxpayers must follow to regularize their status.

The legal basis for these actions is found in Decree 6-91, Tax Code, Article 120, which states:
"For those taxpayers who are delinquent in paying the Value Added Tax or who cannot be located at their tax address, the Tax Administration may suspend their registration in the VAT regime and make a special notation in the taxpayer's or responsible party's tax records."

Notification and Procedure:
If a taxpayer's registration is inactivated, they will receive a notification via mail from the SAT. To proceed with the reactivation of their VAT registration, taxpayers must follow these steps:

1. Identify Non-Compliance: Use the integrated verifier available on the SAT portal to identify any tax non-compliance issues.
2. Generate Pending Forms: Access Declaraguate and generate the forms corresponding to the pending declarations.
3. Submit and Pay: Submit and pay the forms at the system’s authorized banks.
4. Automatic Reactivation: Once the above steps are completed, the VAT registration will be automatically reactivated.

This procedure is essential to ensure continuity in the VAT regime and to avoid potential additional penalties. Electronic invoicing in Guatemala follows a strict legal framework that requires compliance with tax obligations for its correct operation.

Who must adhere to the FEL electronic invoicing system?

All taxpayers designated by SAT, taking into account the volume of invoices issued, level of gross income invoiced, economic linkage, registration in special regimes or other criteria, are obliged to do so.  Currently, the taxpayers that must issue CPE through the FEL system are: 

- Special Taxpayers
- Large Regional Taxpayers
- State Suppliers SAT Resolution 243-2019 (bidding, quotation, open contract, electronic reverse auction).
- State Suppliers SAT Resolution 838-2019 (individual professional services).
- Taxpayers that use the FACE Electronic Invoice.

Online Electronic Invoicing Regime – FEL

Invoices, credit and debit notes, receipts, and other permitted documents can all be issued, transmitted, certified, and preserved under the FEL Regime. The name of these files will be Electronic Tax Documents (DTE).

The taxation structure in the FEL is relatively comparable to that in other Latin American nations like Mexico or Peru.

This model states that before being reported to the SAT, tax records must be independently verified. In this situation, the trusted third party is referred to as a certification authority. Without SAT authorization, a company cannot serve as a DTE certification authority. Each year, this permission must be renewed.

Requirements to become an electronic biller in Guatemala

• To be affiliated to VAT.
• To have an active business.
• To have a Virtual Agency.
• To have updated data in the Unified Tax Registry (RTU).
• To have the address located. 
• To have the authorization in the FEL as issuer.
• Comply with the technical regulations.
• Possess electronic signature. 
• Be up to date with your tax returns.
• Have contracted a certifying entity to validate the DTE's.

How will the electronic invoice work in Guatemala?

• The issuers will generate a file that will be transformed into the file structured by the certifier.
• The certification authority verifies that the rules and validations in force in the FEL Regime were applied and applies the advanced electronic signature. It generates an Electronic Authorization Code that is associated with the document before sending it to the SAT.
• Each DTE must be sent to SAT and the issuer immediately.
• SAT performs the necessary validations to verify that the document complies with the rules and characteristics that guarantee authenticity, integrity, format, and legally established requirements.
• Whether it accepts or rejects the document, SAT issues an acknowledgment of receipt to the certification authority.
• The DTE will be delivered to the receiver either in XML format, by means of a graphic representation or in PDF format.
• The issuers and receivers must keep the files in XML format of the certified DTE for the time established in the Tax Code. The certifier, on the other hand, must keep the certified DTEs and the respective acknowledgments of receipt sent by SAT.

A single platform to manage global e-invoicing

Electronic invoicing has a series of legal and technical requirements that differ from one country to another. This fact means that processes must be adapted to each model of the country in which it is to operate.

There are technological solutions, such as EDICOM Global e-Invoicing Platform, capable of adapting to internal management systems and the requirements in force in each country. In this way, successful international e-invoicing projects can be achieved in compliance with legal and tax requirements in Mexico, Brazil, Chile, Costa Rica, Colombia, or any other country.

• Download the White Paper on Electronic Invoicing in LATAM

These are the main advantages of EDICOM Global Platform:

• Automation. The solution integrates with the main ERPs in the market to automate the VAT declaration and any other tax communication.
• Centralization. It is a platform suitable for fiscal compliance in more than 60 countries around the world, so it is possible to centralize all procedures in a single solution.
• Internationalization. EDICOM Platform is not only ready for electronic VAT returns, but also for electronic invoicing and any other commercial or fiscal communication.
• Compliance. The platform complies with the specific technical and legal requirements of each country when sending information to the tax authority. By outsourcing and automating this process in a single platform, the client will gain flexibility and agility and will have the guarantee that its information reaches the public body in question in the correct manner.
• Security and availability. The EDICOM platform has different certifications such as ISO 27001, ISO20000, ISAE 3402 or TIER II DESIGN. The commitment acquired by EDICOM with all its customers through these certifications is none other than to offer maximum security guarantees and maintain the SLA committed by the company, which establishes a minimum availability of the solution of 99.9%.