Within the tax modernization plan in the country, the issuance and reception of this type of documents via digital was implemented. Since Hispanic Entrepreneurs we explain how electronic invoicing works in Chile and we give details about the mandatory nature of the system.
Since when was this system implemented?
The history of electronic invoicing in Chile begins with the enactment of Law 19.799 in 2002. At first, the issuance of electronic documents was voluntary, but as of 2014 it became an obligation for companies.
It is a pioneering model that later began to be used in other countries. This document replaces the traditional paper invoice and its objectives include reducing tax evasion.
In addition, electronic billers are also issuers and receivers of other Electronic Tax Documents (DTE), such as: credit note, debit note and dispatch guide.
In the case of electronic ballots, it was expected to be mandatory as of September 1, 2020. However, the Internal Revenue Service (SII) postponed it to January 1, 2021; this in the case of those who already issue digital invoices. For those who are not yet, the deadline to adopt this measure is March 1 of next year.
How does electronic invoicing work in Chile?
Although it seems a complex process, it is not, you just have to make sure you meet the requirements demanded by the SII. After the system accepts your application, you will begin to enjoy the benefits that include greater security and transparency in transactions.
In addition, issuing DTE is cheaper than doing it on paper and provides tax benefits to those who do.
We start by clarifying who can issue electronic invoices. In the SII they specify that all taxpayers qualified in the first category of the Income Tax Law can do so.
The rest of the requirements include:
- Having started activities before the SII.
- Be a VAT taxpayer.
- Have the necessary equipment (computer or notebook) that will be configured to issue electronic invoices.
- Have a legal representative who does not have any pending case with the tax service.
In addition to the above, it is necessary to have a digital certificate that will be used to enroll in the electronic invoicing in Chile.
It is important to note that not all taxpayers are required to issue DTE. The specific law that those who carry out economic activities in places without mobile or fixed data coverage; Without access to electricity supply, or decreed as a disaster zone, they are exempt.
Systems available to issue DTE
There are three systems available to comply with mandatory electronic invoicing, namely:
- Free billing system of the SII.
- Billing through market software.
- Own billing system.
El SSI explains how to issue electronic invoices from these systems. The steps to follow in the free system are the following:
- Verify if enrollment in the system is feasible. This must be done by the legal representative if the taxpayer is a legal person, or himself if he is a natural person.
- Install the digital certificate.
- Enter the SSI website and register in the system.
- Configure the equipment for issuing invoices.
In the event that you are going to use your own system or hire software to do so, the process is as follows:
- Acquire software on the market or develop your own for the company.
- Make the application of the system through the menu Electronic bill of SII.
- Once the application is approved, the tax service enrolls the taxpayer in a certification process.
- Finally, the authorization resolution is issued if the certification is approved.
Benefits of issuing electronic invoices
In addition to providing greater transparency to the processes and modernizing the tax system, the electronic invoice brings various benefits for taxpayers.
For example, the ease of consulting documents through the SII to verify their validity. They also allow greater control over distance transactions and cash flow. It also facilitates the monitoring of invoices that are receivable. Finally, they can be broadcast from anywhere and on any device.
Do not forget that once registered as electronic billers, there are also responsibilities to fulfill. Among them we must mention receiving DTE from providers that are also issuers; update the record of purchases and sales in the Electronic Information on Purchases and Sales (IECV).
You must also send the IECV every month to the Internal Revenue Service every month. Also, you must keep all DTEs in digital form for six years.
This is how electronic invoicing works in Chile. For more information on the obligations and characteristics of the documents, consult the SII. Contact us if you need advice to start your business.
