LATAM e-Invoicing

El Salvador announces launch of electronic invoicing

25.03.2020
el salvador-electronic-invoicing

El Salvador is beginning its rollout of e-invoicing. The Ministry of Finance has described the project as “high impact”, a key part of the Salvadoran government’s Secretariat of Innovation’s plan for 2020-2030: Agenda Digital.

The Ministry of Finance will launch a pilot project involving 50 large companies from various sectors. This project will begin in June.

To prepare for the implementation of the new electronic system, personnel at the Tax Service Division of the General Directorate of Internal Taxes are being trained to provide information on the key aspects of the system.

The government has drafted a plan to strengthen the tax administration which includes the implementation of e-invoicing and establishes a user-friendly e-government linked to its plan for economic revitalization, the Plan Despegue Económico.

Among the benefits of e-invoicing mentioned by the government of El Salvador are economic and environmental cost savings from the elimination of paper use. However, it primarily emphasizes new economic opportunities such as:

  • The opening of new trade channels.
  • The promotion of e-commerce and new technologies.
  • New business and employment opportunities providing services related to e-invoicing.

The system also improves tax collection, mainly by increasing oversight and reducing tax evasion. According to the Salvadoran Ministry of Finance, implementing e-invoicing is expected to increase revenue by 1% of GDP at the end of the current five-year period.

E-invoicing is a key tool for preventing tax leakage and streamlining the collection process.

El Salvador is following the path laid out by other Latin American countries like Mexico, Brazil and Chile, leaders in the transition to e-government.

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