Electronic invoicing guide
Paraguay
Digital reporting requirements
After customs clearance (within 72 hours).
Two options are available:
Post-validation – you must send the electronic document to SET within 72 hours of its issuance.
Pre-validation – with the validation of the SET before sending it to the recipient. It must contain a unique control code (CDC) used to validate the authenticity of the document and generate the QR code required for the KuDE format.
The transmission of data to the SET is done through a standardised XML format, called Electronic Document and Electronic Tax Document depending on whether pre-validation or post-validation has been used.
- ED: Electronic Documents (Electronic Sales Vouchers, Electronic Complementary Documents, Electronic Vouchers, Electronic Cash Receipts and Electronic Remittance Notes) generated by the invoicing system of an authorised electronic issuer.
- DTE: Corresponds to the conversion of a DE that has successfully passed all the validations established for this purpose, and which is stored in the SIFEN, so that it can be used as a documentary support for tax, commercial, accounting and legal purposes.
Obligatory
B2C, B2B, B2G for companies called upon to comply with the regulations.
Authority
Undersecretariat of State for Taxation (SET).
Platform
SIFEN for large companies; – e-kuatia website for small companies.
E-kuatia: Electronic invoicing solution aimed at large and medium-sized taxpayers through the development of the necessary software for issuing invoices to SIFEN. These can join voluntarily or can be designated by the SET on a mandatory basis for electronic invoicing. Through the e-Kuatia system, sales invoices, complementary documents, remittance notes and other documents with tax implications are issued, received and consulted electronically.
Format
Local XML.
Storage time
5 years.
Reporting and processes
Reporting
This country has no reporting obligations.
Processes
- Electronic invoices are generated in XML format and must record the stamp given to each document.
- Each electronic document must include the digital signature and control code to guarantee its authenticity and integrity.
- The Electronic Sender must send the Electronic Documents to the Tax Administration for validation.
- Once received, SIFEN will verify their validity. If they meet the requirements, they will acquire the value of Electronic Tax Document and only from that moment will they be valid for, in each case, supporting the VAT tax credit and debit, as well as the sales of goods and services, costs and expenses for income tax purposes.
- The electronic invoice is legally valid once it has been validated and authorised by the SET.
- The issuer of the electronic invoice is obliged to consult the result of the verification process through the web services system provided by the Tax Administration.
- When the buyer is an Electronic Receiver, the invoicing company must send the DTEs (Electronic Tax Documents) by web service, e-mail, data messaging or put it in an information system for downloading. In turn, the receiver must express its conformity or rejection with the DTEs received, indicating in the latter case the reason.
- When the buyer is a non-electronic recipient, the issuer of the invoice must deliver a graphical representation of the document in physical format or send it digitised by e-mail, or make it available for download.
- The TEDs must be retained and their confidentiality, integrity, accessibility and subsequent consultation must be ensured.
Upcoming legislative changes
The National Integrated Electronic Invoicing System (SIFEN) establishes the new tax regime in Paraguay. The SIFEN through the e-kuatia platform is the system through which the Electronic Tax Documents or DTE are issued, received, validated, stored and available for consultation.
Timetable for the implementation of B2G:
1- 12 September 2023 – contracts with designated key government agencies (e.g. Ministry of Transport, Ministry of Digital Transformation and Ministry of Migration and Asylum) must comply with the e-invoicing mandate.
2- 1 January 2024 – Obligation for all contracts with all central government bodies.
3- 1 June 2024 – Obligation for contracts with other public administrations.
4- 1 January 2025. This last stage emphasises the complete transition to a paperless billing system.
Links of Interest and documents
https://www.dnit.gov.py/web/portal-institucional/
Documents
• Electronic invoicing
• Electronic export invoice
• Electronic import invoice
• Electronic self-billing
• Electronic subscription
• Electronic debit memo
• Electronic delivery note
Among the various updates to the country’s e-invoicing system introduced by the new Decree, the following stand out:
New types of electronic documents have been added to the list of DTE: Electronic exchange invoice, Electronic receipt RESIMPLE (Simplified regime of the national corporate tax), Electronic ticket of entry to public concerts, Electronic receipt IRP (Personal income tax), Electronic donation receipt, Electronic import receipt, Electronic receipt of perception and Electronic cash receipt.
Obligation to identify the customer in B2C electronic invoices when the transaction exceeds the following amounts:
• From 1 January 2024: ****PYG 35mil (approx. USD 4,700) or its equivalent in foreign currency.
• As of 1 January 2025: ****threshold is reduced to 7 million PYG (approx.USD 900) or its equivalent in foreign currency.
Updating of existing definitions and inclusion of new ones, as well as greater regulation of several phases of the electronic invoicing process, such as the qualification of taxable persons as issuers of electronic invoices and the events
recorded in the SIFEN by the issuer, the recipient or the Tax Administration.
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