The Electronic Invoice in Paraguay
The implementation of the electronic invoice in Paraguay has been introduced by the Paraguayan Tax Authority (Subsecretaría de Estado de Tributación (SET). The SETs main objective is to improve tax collection and eliminate tax fraud in the country. The e-invoicing project in Paraguay began in 2017 and is comprised of several implementation phases: pilot plan, voluntary, and mandatory.
Table of Contents [Hide]
- Sistema Integrado de Facturación Electrónica Nacional – SIFEN
- Current status of the electronic invoice in Paraguay
- List of obligated taxpayers
- Electronic Tax Documents (DTE) in Paraguay
- Electronic Tax Document (DTE) Types
- DTE Formats in Paraguay
- KUDE – Graphic representation of the electronic invoice
- Requirements to become an electronic invoice issuer
- How does the electronic invoice work in Paraguay?
- Requirements to become a DTE issuer
- Electronic Invoicing Solutions Adapted to your needs
Sistema Integrado de Facturación Electrónica Nacional – SIFEN
The SIFEN system established the new Paraguayan tax ecosystem. The SIFEN uses the e-Kuatia platform to issue receive, validate and store DTE tax documents.
Current status of the electronic invoice in Paraguay
The Undersecretariat of State for Taxation (SET) issued General Resolution No. 105/2021 that provides the administrative measures for the issuance of Electronic Tax Documents. This resolution establishes the dates that taxpayers in the pilot plan and of the voluntary phase were to issue only electronically their tax documents according to General Resolution No. 95/2021, from July 1, 2022, with the purpose of achieving a sustainable and gradual implementation of the SIFEN.
With this new resolution, the SET expands the list of obligated parties to advance with the adoption of electronic invoicing and establishes the dates from which the new groups of taxpayers must issue tax documents electronically. Taxpayers in groups 1 to 10 are required to issue all tax documents electronically, except for the virtual Withholding Voucher.
Date of Obligation
1 – “Pilot Plan”
July 1, 2022
2 – “Voluntary Phase”
July 1, 2022
3 – “Obligatory Phase”
January 02, 2023
4 – “Obligatory Phase”
April 03, 2023
5 – “Obligatory Phase”
July 03, 2023
6 – “Obligatory Phase”
October 02, 2023
7 – “Obligatory Phase”
January 02, 2024
8 – “Obligatory Phase”
April 1, 2024
9 – “Obligatory Phase”
July 1, 2024
10 – “Obligatory Phase”
October 01, 2024
List of obligated taxpayers
The list of taxpayers that make up the groups will be available on the SIFEN web portal (ekuatia.set.gov.py/portal/ekuatia/), on SET's web page, and will notify taxpayers affected to the "Marandu" Tax Mailbox.Documentos Tributarios Electrónicos de Paraguay
Electronic Tax Documents in Paraguay (DTE)
DTEs are electronic tax documents that have been validated and approved by the SIFEN. They back tax credits and debits pertaining to VAT, as well as income and expenses pertaining to income taxes.
Electronic Tax Document (DTE) Types
Electronic sales vouchers
• Electronic Invoice
• Electronic Import Invoice
• Electronic export Invoice
Complimentary Electronic Documents
• Electronic Credit Note
• Electronic Debit Note
Electronic Bill of Lading
DTE Formats in Paraguay
There are two types of formats for DTEs depending on when they were validated.
DE: electronic documents (electronic invoice, electronic export invoice, electronic import invoice, electronic credit note, electronic debit note, electronic self-invoice, electronic bill of lading, other electronic documents) generated by an authorized electronic document issuer.
DTE: is a DE or electronic document that has passed the validations to make it an official tax document and therefore is archived in the SIFEN and can be used for tax, commercial, accounting, and legal purposes.
KuDE – Graphic Representation of the Electronic Invoice
When merchandise is being transferred or when a recipient cannot receive an electronic file a graphic representation of the XML called the KuDE should be delivered. The KuDE can be in printed or digital format and is an auxiliary tax document that details a transaction backed by an electronic document (DE). The KuDE must be stored for 6 months.
En el caso de que traslados de mercancías o cuando el receptor no sea facturar electrónico, deberá entregarse una representación gráfica llamada KuDE. El KuDE puede ser entregado en formato impreso o digital. Se trata de un documento tributario auxiliar que expresa de manera simplificada una transacción que ha sido respaldada por un DE. El KuDE debe conservarse en un plazo mínimo de 6 meses.
How Does the Electronic Invoice Work in Paraguay?
- Electronic invoices are created in an XML format and must register the seal attached to each document.
- Every electronic document must include the digital signature and the control code to guarantee its authenticity.
- The invoice issuer must issue electronic documents to the tax authority for validation.
- When the SIFEN receives them it will validate them making them into DTEs. As DTEs they can be used to back VAT credits and debits, as well as goods and services sales, and expenses for income taxes.
- The electronic invoice only has legal value when validated and authorized by the SET.
- The electronic invoice issuer must inquire about the result of the validation process through the web service enabled by the tax authority.
- When the buyer is an electronic recipient the invoice issuer must send DTEs through web services, e-mail, or make it available in an available application for download. The recipient must also accept or reject received DTEs and detail the reason for the latter case.
- When a buyer is not an electronic recipient, the invoice issuer must deliver a graphic representation of the document in a physical format, or send a digitalized version through e-mail, or make it available for download.
DTEs must be stored, and their integrity, confidentiality, and accessibility must be guaranteed.
Requirements to become a DTE issuer
- To be enabled by the tax authority as an electronic invoice issuer.
- To receive the digital certificate for certification service providers, to guarantee the authenticity, integrity, and non-repudiation for (DE) electronic documents issued, as well as include the tax id of the issuer (RUC).
- To have adequate technical support for the invoice to enable the issuance, reception, and storage of invoices.
- To comply with the mandatory tests in the SET’s test environment, to guarantee that the data in DEs is of satisfactory quality.
- To receive the authorization and digital stamp for DTEs through the Marangatu tax management system, using the confidential user access code. Users must ensure they are up to date on their tax obligations and have an active RUC.
- To solicit the taxpayer security code (CSC) to the SET for the generation of the QR code to be printed on the KuDE associated to a DE.
Electronic Invoicing Solutions Adapted to your needs
EDICOM is an international e-invoicing provider, offering global data integration solution for companies. One of these solutions is the international electronic invoicing platform adapted to the legal and technical specifications of any country where your business or clients may operate.
One of the many advantages of this solution is its scalability, which enables the implementation of new tools to meet its client’s needs. Another advantage is its global capability since the platform adapts to the specifications of each country where you or your clients may operate.