Many countries have adopted electronic invoicing systems, which include the issuance and verification of these documents by means of electronic signature. The Dominican Republic is one of these countries.
We tell you the history and evolution of this initiative:
A highly successful pilot project
In 2019, the General Directorate of Internal Taxes (DGII), decided to start a pilot project of electronic invoicing in the country, inviting a group of large renowned companies to participate in it.
Ten companies participated, starting operations of the pilot project on February 1, 2019 and ending on December 31 of the same year. The result? More than seven hundred and twenty thousand electronic receipts issued.
Given the success of the pilot project, the institution opened the possibility of joining this initiative to all invoice issuing agents in the country. However, they must follow the laws and regulations established for this purpose.
Legal framework for electronic invoicing in the Dominican Republic
Aspects such as the invoicing model, the use of Electronic Tax Receipts (e-CF), their types, the requirements to obtain the “electronic issuer” authorization, among others, are regulated in General Norm 01-2020, which came into force on January 10, 2020.
Subsequently, on May 25, 2023, the General Directorate of Internal Taxes (DGII) published the General Law on Electronic Invoicing (Law 32-23), which establishes and regulates the electronic invoicing tax system in the Dominican Republic. As of that date, the law became effective.
Some highlights of this law are:
- The establishment of entry deadlines and tax facilities for taxpayers who opt for it.
- The establishment of the mandatory use of the electronic invoice from certain deadlines from the entry into force, according to the “size” of each company at a tax level.
- Large taxpayers: within 12 months.
- Large Local and Medium Taxpayers: in 24 months.
- Small, Micro and unclassified taxpayers: in 36 months.
Practical aspects
In general terms, this initiative has been enthusiastically welcomed by a large number of companies and billing agents in the country.
However, some fundamental practical aspects must be taken into account:
- The DGII defined a specific document format in which to insert the data of the electronic invoices; in this case, ,xml.
- The software that generates the electronic invoices, in addition to doing so in said format, must have passed a review process by the DGII.
- The digital certificates with which these invoices must be signed must be the so-called Certificates of Natural Person for Tax Procedures.
- Although it is usually companies that issue the invoices, the certificate that signs such invoices contains exclusively the data of the natural person that signs such invoices.
- This individual must be the same person that each company has previously informed to the DGII as the person in charge of this task for a specific company or RNC (i.e., it does not necessarily have to be the legal representative of the company, but the person who signs and sends the invoices to the DGII).
From Viafirma, we continue to collaborate with all initiatives that lead to a digitalization of processes, both public and private. In this case, we do so by supporting the DGII, companies and invoicing agents with all the services required. All this in the interest of taking the country towards the highest stages of modernization.