The second wave of Chile’s new e-invoicing and libros requirements is quickly approaching, and all companies operating here – even those that enacted e-invoicing processes last year during the first part of the rollout – must prepare. In 2014, companies with revenues of $4.2 million or greater were required to implement e-invoicing. Now, that mandate is extending to any company generating revenues of ~$100,000 or more each year in Chile, with e-invoicing and libros processes required by December 2015.
Even for companies in the first phase of Chile’s mandates, there are critical buyer-side requirements that must be considered, as this second round of rollouts increases the user base of e-invoicing which can affect future VAT tax deductions. Large multinationals are going to start seeing an increase in XML invoices from their suppliers. As we’ve discussed previously, it’s important that accounts payable teams are prepared to process these invoices so that they avoid errors that can result in lost tax deductions.
With this increase in XML invoices, buyers also must be prepared for the acuse de recibo requirement. This means that when a company receives an invoice, the buyer has eight days to acknowledge it through this recipient acknowledgement process defined by the Chilean tax authority. Issues with this process will affect your ability to deduct VAT taxes, and if you can’t claim these deductions, it directly affects your bottom line.
Under its e-invoicing and libros mandates, the Chilean tax authority, SII, requires 10 separate document types (collectively called “Documentos Tributarios Electrónicos” or DTE), in addition to monthly and annual reports. These documents include separate XML structures for business-to-business versus business-to-consumer invoices, for export and consignment invoices, and for “purchase invoices” created by a buyer on behalf of a seller who is not able to provide an appropriate invoice. The monthly reports, which summarize the DTE transactions produced during the month and also include any paper DTEs produced in contingency, are required for tax deductions. If you want to be able to take the full deductions you are entitled, these reports must exactly match your reported transactions for the month.
As e-invoicing and libros requirements in Chile expand, companies of all sizes operating in here need to prepare for the changes. For an in-depth guide to the documents, processes and reporting required in Chile, download our e-book.