Guatemala’s Tax Authority, in August of 2011, passed a bill that introduces amendments to the board resolution number 024-2007 which establishes an optional electronic invoice system ‘FACE’ for the authorization, issuance and transmission, conservation, storage and control of invoices, credit notes and debit cards via e-mail and the receipt of copies of invoices, credit notes and debit cards issued on paper.

By the end of 2012, the largest contributors are required to issue electronic invoices according to the disposition of the Guatemalan Tax Administration. The obligation extends to companies that emit more than 1 million invoices per year. Gradually those companies with between 1501 and 3,000 invoices per year will be incorporated through the end of March 2013.

Electronic invoicing in Guatemala is the replacement of paper invoices.  The electronic invoice is actually an electronic record that contains information on a business transaction, payment obligations and tax preparation. Additionally, the electronic invoice is a bill approved by the SAT, for which registration is issued, filed and stored electronically. Among its objectives is the reduction of business costs in Guatemala and facilitation of compliance with tax obligations. The Electronic Invoice guarantees:

• The existence and origin of the issuer
• The accuracy of the content
• The control of invoices issued in “real time”
• Ease of access to information and ease of reprinting copies
• The same validity as a printed invoice
• Same recognition as an invoice or document printed
• It incorporates an Issue Authorization Code (FAC) that makes it unique and allows the validation of critical data

Guatemala is another country adopting electronic invoicing and mandating its use in Latin America.  Brazil, Mexico and Argentina have taken the lead on compliance, but I predict we will continue to see the adoption in other countries as they see the success of their neighbors.