E-invoicing makes headway in Ecuador

Wednesday 26 November 2014 11:56 CET | News

January 1, 2015 is the next important date scheduled in the e-invoicing rollout schedule in Ecuador.

Although this system has been operating on an optional basis since 2012, in 2014 the Internal Revenue Service (IRS) issued a ruling making it compulsory for different taxpayer groups, with the aim of expanding its use to increase cost savings and combat tax evasion.

Throughout 2014, thousands of businesses have begun using electronic invoicing, in two stages: one in August 2014 and the other in October 2014. Now, in just over a month it will be the turn of the last private sector group affected by the regulation. This group includes all those special taxpayers that did not migrate by the previous deadlines, such as self-printers, companies trading via internet and taxpayers engaged in economic activities for export.

On the same date, January 1, 2015, the rollout of e-invoicing in the Administration is set to commence. Public companies, mixed economy businesses and public sector financial institutions will be the first to take this technological leap. Subsequently, two other groups related with the public administration area will still have to migrate.

In general, it is anticipated that rollout of electronic billing in Ecuador should be completed by July 2015. By then, the IRS calculates that more than 13,600 taxpayers will use this system. Thanks to this, trade relations will be streamlined, at the same time as productivity and savings are increased. This is because this new system almost completely automates the procedure and slashes the costs of printing, sending and storing documents.

The advantages offered by electronic invoicing have become a priority in countries worldwide. European Union countries and several states on the American continent such as Mexico, Chile and Brazil have all taken similar steps to Ecuador’s to encourage the use of this system.

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Keywords: e-invoicing, Ecuador, Internal Revenue Service, IRS, taxpayer, tax evasion , regulation, deadlines, electronic billing, automates
Categories: Banking & Fintech
Countries: World
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