The Characteristics of Electronic Invoicing in Paraguay

Electronic invoicing in Paraguay began its development in 2017 as part of the plan executed by the Subsecretaría de Estado de Tributación (SET) to modernize and improve tax collection, while also reducing tax fraud. The implementation of the Sistema Integrado de Facturación Electrónica Nacional/National Integrated Electronic Invoicing System (SIFEN) introduced a new framework for electronic invoicing in the country. The adoption of this new system was carried out gradually through various phases, including a pilot plan, voluntary participation phase, and mandatory compliance phase. The voluntary participation phase started in 2019, allowing businesses to issue electronic invoices voluntarily. However, as of July 2022, the use of the system became progressively mandatory for certain groups of taxpayers.

Tax Authority

Tax Authority

The Subsecretaría de Estado de Tributación (SET) is the entity under the Ministry of Finance responsible for implementing the Sistema Integrado de Facturación Electrónica Nacional/National Integrated Electronic Invoicing System (SIFEN).

Obligation

Obligation

The Sistema Integrado de Facturación Electrónica Nacional/National Integrated Electronic Invoicing System (SIFEN) is currently in its mandatory compliance phase. Mass adoption of electronic invoicing will extend until 2024, through the progressive incorporation of all taxpayer groups mandated to electronically issue all their tax documents.

Required Administrative Procedures

Required Administrative Procedures

Companies must register and undergo a certification process in the SIFEN system to be authorized as electronic invoicers:

 

  • They must acquire the digital certificate from an authorized Certification Service Provider containing the Registro Único de Contribuyente/Unique Taxpayer Registry (RUC) of the electronic invoicer.
  • Request the authorization and stamping for Documentos Tributarios Electrónicos /Electronic Tax Documents (DTE) through the Marangatu tax management system, using their Clave de Acceso Confidencial de Usuario/Confidential User Access Key, therefore these invoicers must be up to date with their tax obligations and have an active RUC.
  • Request the Código de Seguridad del contribuyente/Taxpayer Security Code (CSC) from the SET that will be used to generate the QR that is to be printed on KuDE (which is a simplified graphic representation of an DE or DTE in physical or readable digital format) associated with their DE.

 

Format

Format

The transmission of this data to the SET is carried out using a standardized XML format called Documento Electrónico/Electronic Document (DE) and Documento Tributario Electrónico/Electronic Tax Document (DTE), depending on whether pre or post-validation was used.

 

  • DE (Electronic Documents): Generated by the electronic invoicing system of an authorized electronic issuer, including Electronic Sales Receipts, Electronic Supplementary Documents, Electronic Invoices, Electronic Money Receipts, and Electronic Remittance Notes.
  • DTE (Electronic Tax Document): This refers to the conversion of a DE that has successfully passed all set validations and is stored in SIFEN, which can serve as documentary support for tax, commercial, accounting, and legal purposes.
Fiscal Control

Fiscal Control

Post-validation: The DE must be sent to the SET within 72 hours from issuance (with some exceptions where the deadline is reduced).

 

Pre-validation: It is delivered to the recipient once the SET has verified the document. The SET provides a unique control code per document (CDC) that validates the document's authenticity and generates the QR code necessary for the printed KuDE format.

Digital Signature

Digital Signature

It must be digitally signed using a certificate provided by an authorized entity.

Print format

Print format

KuDE, a standardized printed format of the electronic invoice.

Archiving

Archiving

Storage of invoices is mandatory for both the issuer and the recipient for a legal period of 5 years.

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How Does Electronic Invoicing Work in Paraguay?

The following is the process for issuing and sending Documentos Tributarios Electrónicos /Electronic Tax Documents (DTE) according to the requirements established by the National Sistema Integrado de Facturación Electrónica Nacional/Integrated Electronic Invoicing System (SIFEN).
1

Issuance and validation

Obtain the necessary data from the client's ERP to transform the data into the XML standard set by the SET. Apply data validation mechanisms to ensure it contains the necessary information.

2

Signature and fiscal control

Each document is signed electronically using the advanced digital signature and is sent to the SET for its validation. Depending on whether pre or post-validation is used, the two document types, DE and DTE, are distinguished.

3

Sending to the destination

Once the SET validates and authorizes the invoices, EDICOM proceeds to automatically send the DTE to its recipients through secure and reliable communication channels (private VAN, EDI gateway, https, sftp, x400, OFTP, AS2, AS4...).

4

Electronic storage

Electronically archive the Documentos Tributarios Electrónicos (DTE)/Electronic Tax Documents with guarantees of full security and accessibility during the legal 5 year period, for both the sender and the receiver.

Frequently Asked Questions about Electronic Invoicing in Paraguay

Here, we help address some common questions regarding electronic invoicing in Paraguay.

It is a document issued and digitally signed by the electronic invoicer that has not yet been approved by the SET. As a result, it cannot be used to support VAT debit or credit, as well as income, costs, and expenses when declaring Income Taxes.

It is the DE transmitted to the SET, validated, and approved by SIFEN, which can be used to support VAT debit and credit, as well as income, costs, and expenses when declaring Income Taxes. Conforming to the regulations governing these taxes, the cited document is available for public consultation on the E-Kuatia portal, through SIFEN Web Service, or via the Marangatu System.

The following documents can be issued electronically:

1. Comprobantes de Ventas Electrónicos/Electronic Sales Receipts: 

  • Factura Electrónica (FE)/Electronic Invoice.  
  • Autofactura Electrónica (AFE)/Electronic self-invoice.  

2. Documentos Complementarios Electrónicos/Electronic Supplementary Documents: 

  • Nota de Crédito Electrónica (NCE)/Electronic Credit Note.  
  • Nota de Débito Electrónica (NDE)/Electronic Debit Note.  
  • Nota de Remisión Electrónica (NRE)/Electronic Remittance Note.  

3. Boleta de Venta Electrónica (BVE)/ Electronic Sales Receipt - Ekuatia´i 
4. Boleta RESIMPLE Electrónica (BRE)/Simple Electronic Receipt - Ekuatia´i

The electronic invoicer must keep all DEs and DTEs they have issued, received, and transmitted in their invoicing system, for the statute of limitations established in the Tax Law. This ensures the integrity, confidentiality, accessibility, or subsequent consultation of these documents, in spite of the fact that the taxpayer may keep such documents for a longer period of time than the one established. In the same way, electronic archives of the events of the DTE issued or received and events of  non-use of the DE number must be kept. Non-electronic invoicing taxpayers must keep, in physical or digital form, the KuDEs of received DEs for the same period.
 

The electronic invoicer can request the cancellation of the Electronic Invoice up to 48 hours after the date and time approval of the DTE by SIFEN, and for the cancellation of other documents up to 168 hours (7 days) after the date and time of approval of the DTE. As a result, the DTE is permanently recorded as "canceled" in SIFEN. The DTE canceled by the issuer will have no legal or tax validity to support tax debit and/or tax credit, as well as income, costs and/or expenses. 

For the cancellation of an approved Electronic Invoice, which has an associated Nota de Crédito Electrónica (Electronic Credit Note) or Nota de Débito Electrónica (Electronic Debit Note), the associated DTE must be previously canceled.  Once the DTE has been canceled, this situation is permanent and cannot be modified. In this case, the canceled DTE must remain unaltered and intact, which cannot be used again, and must be kept for the statute of limitations period established in the Tax Law.

Once digitally signed and approved by the Tax Administration with an approval transaction number, Documentos Electrónicos (DE)/Electronic Documents acquire the status of Documentos Tributarios Electrónicos (DTE)/Electronic Tax Documents with legal validity, evidentiary support, and tax implications.
 

The KuDE has tax validity to support the tax debit and credit, as well as income, costs, and/or expenses, as long as it exists and fully matches the DTE entered into SIFEN, regardless of the obligation to keep them for the statute of limitations of the tax period.
 

If the DE sent to SIFEN does not pass the validations for approval, SIFEN will indicate the date and time of rejection, along with the code and message of the first identified error in the DE. In case the tax generating event has already occurred,  a correction to the electronic file of the ED may be made, reusing the same CDC of the rejected DE and submitting it again for validation as many times as necessary until a approval of use is obtained.

After the DTE is approved, the issuer must send or arrange the new KuDE or the new electronic file of the DTE to the recipient. Similarly, the SIFEN will reject the DE received when the issuer’s or recipient’s RUC is canceled at the time of issuance of the DE, in B2B transactions.
 

It is an electronic signature certified by an accredited provider, created using means that the holder keeps under exclusive control so that it is linked solely to the holder and the data it refers to, allowing the later detection of any modification and verification of the holder's identity, preventing from not knowing the integrity of the document, its authorship and avoiding its repudiation.
 

A Virtual Invoice is a sales receipt issued by the taxpayer through the Marangatu System, while an Electronic Invoice is a Documento Electrónico (DE)/electronic document with a digital signature and is in an XML format. Therefore, once approved in SIFEN, it becomes a Documento Tributario Electrónico (DTE)/Electronic Tax Document with legal validity, evidentiary support, and tax implications.
 

E-Kuatia´i is a free electronic invoicing solution aimed at taxpayers that will be issuing a low volume of electronic documents. Provided by the SET, it includes basic products and services such as issuance, approval, sending, consultation, and archiving of Documentos Tributarios Electrónicos (DTE). The SET will provide, free of charge, the certificate and digital signature for signing Documento Electrónico (DE)  issued in this solution.
 

The Sistema Integrado de Facturación Electrónica Nacional (SIFEN), or National Integrated Electronic Invoicing System in English, is the system through which Comprobantes de Ventas (Electronic Sales Receipts), Documentos complementarios (Supplementary Documents), and Notas de Remisión (Remittance Notes), and other documents with tax implications that can be issued electronically are issued, received, validated, approved, and consulted.
 

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