LATAM e-Invoicing

The electonic invoice in El Salvador

einvoicing el salvador

El Salvador continues to develop their electronic invoicing system. 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.

EDICOM is now issuing electronic invoices in El Salvador.

The tax authority is currently in the pilot phase with 50 large companies in different sectors. EDICOM is currently issuing invoices for one of these companies. Once the pilot phase ends it is expected for the government to announce a timeline with phases for the mandatory adoption of the electronic invoice.

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.

The electronic invoice is an indispensable tool to stop tax evasion and optimize the tax collection process.

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.



Learn more about the potential benefits for your company

Get in touch with an EDICOM representative