How electronic invoicing works in Paraguay

The implementation of electronic invoicing in Paraguay, driven by the Sub Secretariat of State for Taxation (SET), aims to improve tax management and reduce tax fraud. This digital transformation seeks to modernize the country’s tax system, promote greater transparency, and streamline administrative processes.

National Integrated Electronic Invoicing System – SIFEN

The National Integrated Electronic Invoicing System (SIFEN) represents a major transformation in Paraguay's tax regime. Implemented via the e-kuatia platform, SIFEN facilitates the issuance, receipt, validation, and archiving of Electronic Tax Documents (DTE). This system not only optimizes the invoicing process but also enables access to various consultation services related to DTEs.

Through this platform, taxpayers can efficiently manage their tax obligations, ensuring greater transparency and security in commercial transactions. Additionally, SIFEN contributes to the modernization of the tax system, promotes digitization, and reduces the need for paper documents, thereby improving efficiency for both taxpayers and tax authorities.

Status of electronic invoice implementation in Paraguay

The implementation of electronic invoicing in Paraguay has been a gradual process. In 2021, the Sub Secretariat of State for Taxation (SET) issued General Resolution No. 105/2021, establishing measures for issuing Electronic Tax Documents and designating certain taxpayers as electronic issuers. It set July 1, 2022, as the deadline for taxpayers who participated in the pilot program and the voluntary phase of SIFEN to start issuing electronic documents.

In 2024, the SET published General Resolution DNIT No. 01, expanding the list of taxpayers required to issue their documents electronically, including legal entities registered with the RUC. These taxpayers must issue all documents electronically, except for the virtual Withholding Receipt.

In 2025, the DNIT issued General Resolution No. 21, designating new groups of primarily medium and large taxpayers as electronic issuers. These groups must comply with the mandatory electronic issuance schedule between March 2025 and December 2026. Additionally, starting January 2, 2026, all government suppliers must issue all their tax documents electronically, except for the virtual withholding receipt.

Electronic Tax Documents in Paraguay (DTE)

DTEs are tax documents validated and approved by SIFEN in electronic format. They serve to support VAT debit and credit, as well as income, costs, and expenses in income taxes. The types of Electronic Tax Documents in Paraguay include:

Electronic Sales Receipts

• Electronic Invoice
• Electronic Bill of Exchange Invoice
• Electronic Export Invoice
• Electronic Self-Invoice
• Electronic Simplified Ticket
• Electronic Ticket for Entry to Public Shows

Electronic Supplementary Documents

• Electronic Credit Note
• Electronic Debit Note

Electronic Documents

• Electronic Income Tax Document
• Electronic Donation Document
• Electronic Import Document
• Electronic Retention Receipt
• Electronic Perception Receipt

Electronic Money Receipt
Electronic Dispatch Note

Format of DTEs in Paraguay

In Paraguay, there are two types of formats for Electronic Tax Documents (DTE), that are distinguished based on the validation process used:

• DE (Electronic Document): Refers to documents generated by an authorized electronic issuer’s invoicing system, such as sales receipts, complementary documents, electronic receipts, and electronic shipping notes.
• DTE (Electronic Tax Document): This is a version of a DE that has successfully passed all required validations. Once validated, the document is archived in SIFEN and is considered legally valid for tax, commercial, accounting, and legal purposes.

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. 

Systems for issuing Electronic Tax Documents (DTE)

There are two options for issuing electronic invoices and complementary documents in Paraguay:

• E-kuatia’i: A free electronic invoicing solution aimed at taxpayers with a low volume of document issuance. The SET provides this tool free of charge, providing basic services such as issuance, approval, sending, consultation, and archiving of DTEs.
• E-kuatia: This solution is intended for large and medium-sized taxpayers, who must have the necessary software to issue electronic invoices to SIFEN. Taxpayers may opt in voluntarily or be designated by the SET as mandatory users. Through this system sales invoices, complementary documents, shipping notes and other documents with tax impact are issued, received and consulted electronically.

How electronic invoicing works in Paraguay

In Paraguay, electronic invoices are generated in XML format and must include a stamp, digital signature, and control code to ensure authenticity. Electronic issuers must send these documents to the Tax Administration for validation through SIFEN.

Once validated, the documents acquire the status Electronic Tax Documents and are valid to support VAT tax credits and debits, as well as income-related transactions. The invoice has legal validity only once authorized by the SET. Issuers must check the validation result through the Tax Administration’s web service system.

If the buyer is an electronic recipient, the issuer must send the DTEs via web service, email, or other digital means. The recipient must confirm or reject the document. If the recipient is not electronic, the issuer must provide a printed or digitized version of the invoice. Finally, DTEs must be securely archived , ensuring their integrity and accessibility for future reference.

KuDE, graphical representation of the electronic invoice

When goods are transported or when the recipient is not an electronic invoicer, a graphical representation known as KuDE must be provided. This document may be issued in print or digital format. The KuDE is an auxiliary tax document that simplifies a transaction supported by an Electronic Document (DE). It is important to keep the KuDE for a minimum period of 6 months.

EDICOM's global electronic invoicing platform

EDICOM is an international leader in electronic invoicing and tax compliance solutions, offering a global platform that enables companies to automate the issuance and receipt of Electronic Tax Documents (DTEs) in compliance with Paraguay’s tax regulations. In the Paraguayan context, EDICOM’s solution streamlines the generation, validation, and submission of DTEs, ensuring compliance with the requirements established by SIFEN.

Thanks to its advanced technology, EDICOM’s platform optimizes administrative processes by automating workflows, reducing manual errors, and ensuring seamless integration with companies’ ERP systems. It also offers secure electronic archiving services, enabling the preservation and retrieval of DTEs during the legally established period.

As a specialist in electronic invoicing, EDICOM provides a scalable and adaptable solution aligned with tax regulations across multiple countries, enabling businesses to operate efficiently and securely in international markets, guaranteeing traceability and regulatory compliance in their tax operations.