The State of Electronic Invoicing in Panama
Resolution No. 201-9775 has been published, establishing that Authorized Certification Providers (PACs) must have the capability to report affiliation to Electronic Invoice Issuers through a specific Web Service (WS).
Panama began the implementation of electronic invoicing in 2016 with the establishment of the Panamanian Electronic Invoicing System (SFEP).
The SFEP implementation is composed of 4 phases: Design, Construction, Voluntary Pilot Plan, and Massification. Following the completion of the Pilot Plan, in which 43 companies participated, the Panamanian e-Invoicing system has entered the voluntary massification phase as of July 1, 2021.
The Panamanian Electronic Invoicing System (SFEP) is regulated by Executive Decree No. 367. The Decree lays out the legal requirements for adoption of electronic invoicing by companies exempted from the use of Fiscal Devices by the General Revenue Directorate (DGI), Panama's tax authority.
The technical specifications are set out in the Technical File, which defines formats, procedures and standards related to electronic invoicing.
In accordance with Law 256, published on November 26, 2021, it was established that as of January 1, 2023, all new RUCs (Taxpayer Identification Numbers - TINs) must use PAC e-Invoices for invoicing.
New Resolution No. 201-9775
As of November 9, 2023, a new fiscal obligation has come into effect, driven by the General Revenue Directorate (DGI) through Resolution No. 201-9775. This resolution stipulates that Authorized Certification Providers (PACs) must have the ability to report affiliation to Electronic Invoice Issuers through a specific Web Service (WS).
The regulation also requires PAC clients to complete six registration steps to be considered Electronic Invoice Issuers, emphasizing the need for accurate and timely implementation. These changes directly impact PACs and taxpayers whose income exceeds one million dollars, requiring a detailed understanding of the implications and the adoption of appropriate measures.
- Generate Sworn Statement of Adoption “SFEP” in e-tax2.0: Companies must complete and submit a Sworn Statement of Adoption “SFEP” on the e-tax2.0 platform. This statement informs whether the company will issue invoices using the free invoicing method or opt for an Authorized Certification Provider (PAC).
- Generate Sworn Statement of Authorized Representative Request: Additionally, companies must generate a Sworn Statement of Authorized Representative Request for the withdrawal of the electronic signature. This step is essential to establish proper management of the electronic signature associated with fiscal transactions.
- Implementation Deadline for the Invoicing System: After submitting the statement, companies have between 90 and 120 days (2.5 million) to fully implement their invoicing system. This deadline is crucial to ensure a smooth and timely transition.
- Pass Certification Tests: The taxpayer must undergo and pass the certification tests established by the DGI. This step is essential to ensure that the invoicing system complies with the specified standards and requirements.
- Report to PAC through the Affiliation WS: Once the tests are passed, the PAC must report through the Affiliation Web Service that the company has successfully completed the certification process. This step is vital to enable the company as an Electronic Invoice Issuer.
- Confirm Affiliation in e-tax2.0: The taxpayer must confirm the affiliation of their PAC directly on the e-tax2.0 platform. This process ensures an effective connection between the taxpayer and the chosen PAC.
Resolution No. 201-9775 sets a key date for implementation: this obligation came into effect on November 9, 2023. Therefore, both PACs and affected taxpayers must take swift action to comply with the regulation and avoid possible penalties.
From a technical perspective, these changes require PACs to internally review and adjust their systems to ensure the ability to report the affiliation of FE Issuers through the designated WS. This technical adaptation is essential for compliance and efficiency in the management of electronic fiscal documents, ensuring that processes align with the guidelines of the DGI.
The Panamanian Electronic Invoicing System (SFRP)
With the publication of Executive Decree Nº3 on January 23, 2023, the implementation and adoption of the Panama Electronic Invoicing System (SFEP) has been postponed for companies following new implementation dates.
- Effective January 2, 2023:
- Private entities that have been authorized by the Autoridad Marítima de Panamá to enforce compliance with the rules of construction, navigation, pollution prevention and safety for merchant ships, passenger transport, leisure boats, scientific research vessels, oil exploration, and drilling vessels that are registered in the Marina Mercante de Panamá.
- Cargo transportation services of petroleum products.
- Inns and hotels that have less than seven rooms.
- Property leasing activities under a contract that is notarized or registered with the Ministerio de Vivienda y Ordenamiento Territorial and is carried out by a natural or legal person who manages his or her property without the intervention of a third party.
- Effective March 1, 2023:
- International public passenger transportation services by land, air or sea.
- Domestic public air-passenger transportation services.
- Three phases have been established for services and operations carried out by banks and other financial entities (April 30, June 30 and August 31, 2023):
- Phase 1 (April 30): In this phase, banks and other financial institutions will be obligated to use the electronic invoicing system for all commissions of services provided, such as: Commissions and Surcharges (Savings Account Commissions, Surcharges for Savings accounts, Commissions for Loans, etc.)
- Phase 2 (June 30): In this phase, banks and other financial institutions will be obligated to use the electronic invoicing system for all commissions of services provided, such as: Interest earned on personal loans, mortgage loans, business loans, loans, lines of credit, overdrafts, etc.
- Phase 3 (August 31): In this phase, banks and other financial institutions will be obligated to use the electronic invoicing system for all commissions of services provided, such as: Investment Banks, Currency Exchanges, Fund Administrators (investment funds, savings, pension) Insurance and Reinsurance Companies, Credit Cards, ATM, etc.
- Effective June 30, 2023:
- Operations and services performed by banks and other financial institutions, including leasing companies and investment funds.
Companies established in free or special zones, such as:
- Zona Franca de Barú
- Zonas Francas
- Zona Libre de Petróleo
- Zona Libre de Colón (ZLC)
- Ciudad del Saber
- Área Económica Panamá Pacífico (AEEPP)
- Sede de Empresas Multinacionales (SEM)*
- Multinational companies that are responsible for the provision of services related to manufacturing. (EMMA)*
*SEM companies that are incorporated under the EMMA regime must adopt the Panama Electronic Invoicing System according to the date established in the preceding calendar.
- Effective August 31, 2023:
- Activities carried out by the stock and commodities exchange authorized to operate in Panama.
- Activities carried out in the Insurance sector.
- Transactions carried out by any other financial entities not previously specified.
EDICOM is an Authorized Certification Provider (PAC) in Panama.
EDICOM was accredited on November 14, 2022 as an Authorized Certification Provider (PAC) by the Dirección General de Ingresos de la República de Panamá (DGI).
If you are interested in starting an electronic invoicing project in Panama, please request more information.