On January 1, 2020, a new e-invoicing mandate took effect in El Salvador. The decree, which was passed in early 2019, requires businesses to issue and submit electronic invoices for all taxable transactions. Businesses that fail to comply with the new regulation may be subject to fines and other penalties.
What is E-Invoicing?
E-invoicing, also known as electronic invoicing or online invoicing, is the process of creating and sending invoices electronically. instead of using paper documents. E-invoices can be sent and received electronically via email, an online portal, or an integrated software system.
There are many benefits of e-invoicing, including improved efficiency and accuracy, reduced paper waste, and quicker payment turnaround times. For businesses, switching to e-invoicing can result in significant cost savings.
What is the New Regulation in El Salvador?
The new regulation in El Salvador requires businesses to issue and submit electronic invoices for all taxable transactions. The decree applies to businesses of all sizes, both domestic and foreign.
Businesses that fail to comply with the new regulation may be subject to fines and other penalties. The amount of the fine will depend on the severity of the infraction and whether it is a first-time or repeat offense.
How can Businesses Comply with the New Regulation?
There are several ways that businesses can comply with the new e-invoicing regulation in El Salvador. One option is to use an existing accounting or invoicing software that offers e-invoicing capabilities. Another option is to sign up for an online invoicing service.
Some businesses may need to make changes to their internal systems and processes in order to comply with the new regulation. For example, businesses that have been using manual invoicing processes will need to switch to electronic invoice processing in order to meet the new requirements.
How Can S4FN Help?
S4FN offers a sap-based e-invoicing solution that can help businesses comply with the new e-Invoicing regulations. Contact us today to learn more about our e-invoicing solution.
