Electronic invoicing adoption in Costa Rica
Costa Rica moves towards mandatory electronic invoicing in 2019. Costa Rica's Directorate General of Taxation has published through the DGT-R-012-2018 mandatory deadlines for Costa Rican taxpayers to become users of electronic invoices, starting from 1 September 2018.
Taxable subjects who have not joined the electronic invoicing system, due to not being included in any of the groups provided for by the Administration according to resolution DGT-R-51-2016, should join the system within the following time periods depending on the last digit of their identity card number, in the case of natural persons, or the number of their legal entity card, when they are companies or other organizations:
- All taxable subjects whose last card number is 1, 2 or 3 will be obliged to join the system and start issuing electronic invoices, as of 1 September, 2018.
- All taxable subjects whose last card number is 4, 5 or 6 will be obliged to join the system and start issuing electronic invoices, as of 1 October, 2018.
- All taxable subjects whose last number card number is 0, 7, 8 or 9, will be obliged to join the system and start issuing electronic invoices, as of 1 November, 2018.
It is also important to note that taxable subjects considered as Large National Taxpayers are now subject to the aforementioned terms, without the need for individualized communication as has been done to date.
How does e-Invoicing in Costa Rica work?
To be able to issue electronic receipts, the taxpayers must register with the DGT and have a security mechanism to the sign the electronic vouchers to guarantee their integrity and authenticity. It’s necessary that:
- Invoices are signed electronically in order to guarantee integrity and authenticity. The e-Invoice in Costa Rica must be digitally signed from a certificate issued by an international certification authority.
- Invoices are archived. Archive is mandatory for the sender and receiver for a 5-year period in accordance with Article 109 of the Tax Rule and Procedure Code.
Electronic documents in the electronic invoice in Costa Rica
Electronic invoicing in Costa Rica includes a total of five documents or messages that form part of the exchange:
- Invoice: Backs the sale of goods and the provision of services.
- Credit note and Debit note: Allow canceling or modifying the accounting effects of the electronic invoice or electronic receipt, not altering the information of the source document.
- Electronic ticket: Electronic invoice that backs the sale of goods and services, authorized only for transactions with final consumers.
- Acknowledgments of acceptance or rejection of documents.
Figures involved in the exchange of electronic invoices
Being an issuer of electronic invoices automatically obliges becoming a recipient of electronic invoices as well. However, there is also the figure of the electronic recipient - not issuer. These are taxpayers included in special regimes or public institutions who do not make sales in the national territory and who receive electronic invoices for purchases made on the domestic market using a computer system.
The flow works the following way:
- The taxpayer sends an XML of the invoice to the ministry of finance for validation as well as for a message acknowledging that it was received.
- The tax administration receives the invoice and has up to 3 hours to validate and send an acknowledgment of acceptance or rejection. This message will accompany the invoice once it is sent to the recipient.
- The recipient must accept or reject the invoice with a new message. Acceptance of the electronic invoice by the electronic recipient is mandatory to support the expenses and must be sent to the DGT for validation within a period not more than 8 days.
In Costa Rica’s electronic invoicing flow there are two key messages that travel along with the electronic invoices.
- Message from the Ministry of Finance: A message given by the Ministry of Finance in response to the invoice’s electronic issuer indicating its approval or rejection. Validations by the ministry of finance will take place at structural levels and will also involve semantic validations (amounts, addresses, etc.)
- Received Message: A message sent by the invoice’s receiver to the Ministry of Finance accepting it, partially accepting it or rejecting it. All electronic receipts and associated documents must have an acceptance message from the Ministry of Finance. Otherwise they cannot be used as a means of backing tax credits or deductible expenses.
Learn more about e-Invoicing in LATAM.
Automates issuing and receiving electronic invoices with any third party
Given the great number of messages to be handled in a short time, EDICOM proposes a solution capable of establishing EDI communications with all its customers.
On the one hand, through integration with any management system, EDICOM can automate the generation and delivery of invoices to the Ministry of Finance, also integrating invoices received in the ERP. At the same time, it also automates sending invoices to recipients.
For receipt of invoices, we offer the possibility of having a Customer Portal, through which we can receive any type of documentation from the electronic issuers. This portal is intended for those electronic invoice recipients who do not have an integrated EDI solution. The recipient can upload the acceptance or rejection message to the portal and it will be sent to the Ministry of Finance and to the issuer of the invoice.