Since Chile launched its very successful e-invoicing / e-reporting model in 2003, which was almost immediately followed by Argentina, Brazil and Mexico, many other Latin American countries have implemented similar projects. Colombia and Peru are probably the best examples, having taken advantage of all the experience accumulated through these projects over the last two decades.
What distinguishes Colombia and Peru from other countries in the region?
Common aspects among Latin American countries
As we have explained in previous articles, most Latin American e-invoicing models are based on the implementation of standard XML formats for generating digital documents, as established by the Tax Authorities of each country. These documents must be digitally signed and sent in real time for validation through technological platforms implemented by these authorities, although in some cases this validation is carried out by certified service providers.
This is no longer news, however, some countries, such as Colombia and Peru, have carefully studied the experiences of the pioneering countries (Chile, Brazil, and Mexico) and decided to emphasise certain characteristics beyond taxes, allowing their models to be highly innovative and successful.
Pioneers facilitating SME financing
Both countries experienced some setbacks in the initial implementation of their respective projects, but the most recent versions incorporate significant support for financial solutions focused on supporting small and medium-sized businesses (SMEs). This was achieved by adding features that give e-invoices executive value once they are properly issued, tax-validated, and commercially accepted by their recipients. This facilitates invoice financing and payment through innovative dynamic discounting and e-factoring services.
Peru
In 2016, the Peruvian tax authority (SUNAT), in conjunction with the Ministry of Commerce (PRODUCE), established a regulation that, in addition to tax validity, allows for the verification of the commercial validity of e-invoices, and enables them to be marked as paid and/or discounted. This reduces the risks and costs for all parties involved in these important processes, including private financial entities, which interact with this information through private platforms duly authorised to provide this type of service.
Additionally, SUNAT adopted the international standard UBL (version 2.1) as the format for its e-invoices, known as "Comprobante de Pago Electrónico" (CPE), which are validated through SUNAT-certified service providers (OSE).
Colombia
The Colombian tax authority (DIAN) and the Ministry of Commerce (MINCIT) took it a step further in 2018 by establishing a strategic alliance through which DIAN provides the technology platform called RADIAN. Launched in 2020, RADIAN’s commercial validation service is fully integrated e-invoicing in accordance with the MINCIT regulation, enabling all participants to exchange the necessary information for financial processes.
DIAN also adopted the international standard UBL (version 2.1) as the format for its e-invoices, called "Documento Electrónico" (DE), which are validated directly and in real time by the DIAN platform. To manage the highly critical nature of this process, DIAN contracted the specialised cloud computing services of one of the largest providers of this type of technology. However, DIAN also requires that all electronic invoicing solution providers comply with a rigorous certification process.
Conclusion
As we mentioned in a previous article, Colombia and Peru are two very important examples of how compliance can go beyond fulfilling obligations to act as a catalyst for business efficiency, innovation, and competitiveness, allowing digital transformation to drive both compliance and economic growth.
At Unifiedpost, we believe that these kinds of positive examples will be replicated all over the world, accelerating digital transformation, but also generating some complexities. We offer a variety of powerful tools to assist businesses as they navigate these challenges, simplifying real-time validations, secure document transmission, and integration with tax authorities and as other entities, and ensuring businesses seamlessly meet regulatory requirements. By leveraging Unifiedpost’s solutions and expertise, companies can streamline their invoicing processes, reduce the risk of fraud, and unlock opportunities for greater operational efficiency and financial services.
Mario Fernandez has over 20 years of experience in e-invoicing solutions for Latin-America. He founded Gosocket in 2001, and expanded its operations to 12 countries, positioning that company as one of the largest e-invoicing solution providers in that region. He wrote two books that helped Tax Authorities to understand and manage the complexities of implementing e-invoicing, and he also has extensive experience in product management and consulting for clients of different industries. He is currently serving as Product Compliance Manager for Latin-America at Unifiedpost Group, focusing on e-invoicing rules, and regulatory standards for that region.
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