Electronic invoicing guide
Dominican Republic

The Electronic Invoicing Law is legislation that makes the use of electronic invoicing mandatory in the Dominican Republic as a means of documenting commercial transactions carried out in the country.

Law No. 32-23, on Electronic Invoicing, entered into force on 16 May 2023. Its main objective is to modernise and streamline invoicing processes, thus promoting automation in the issuance, receipt and storage of invoices. The implementation of electronic invoicing seeks to reduce tax evasion, improve tax control and facilitate auditing by the competent authorities.

The period of application
The deadlines for the implementation of the law began to be calculated as of its entry into force. The Directorate General of Internal Taxes (DGII) published the implementation schedule for taxpayers obliged to issue electronic tax receipts
(CF-e).

Depending on the category of taxpayer, the periods are as follows:
• Large national taxpayers: they have a period of 12 months from the entry into force of the e-invoicing law. These large taxpayers have been divided into three groups. The first group will have until 15 January 2024. The second group will have until 15 March 2024 to set up their electronic receipts. The third group has until 15 May 2024.

• Large local taxpayers and medium-sized national taxpayers: they have 24 months from the entry into force of the e-invoicing law. This means that these companies must become electronic taxpayers by 15 May 2025.

• Small, micro and unclassified companies: they have a period of 36 months from the entry into force of the e-invoicing law. The margin for SMEs is 3 years, so the deadline for this type of company is 15 May 2026.

Other relevant aspects of the electronic invoicing law in the Dominican Republic
• Incentive: one of the important aspects contained in the e-invoicing law is the granting of a tax incentive, consisting of a tax credit for taxpayers who adhere to the implementation schedule.

• Taxpayers who are not yet obliged to issue electronic invoices, but who wish to fully implement the system before the mandatory period arrives, will be eligible for the incentives provided for in Article 38 and following. This incentive ranges from RD$300,000 in the case of small and medium-sized companies, and up to RD$25,000 in the case of micro-enterprises and unclassified companies. The DGII specified that these incentives work as a credit, and can be applied to the following items: advance payments of income tax; operational value added tax, income tax and asset tax.

• Tax exemptions: in addition, Article 34 of the new law provides that government suppliers who have been authorised as electronic issuers by the DGII and who invoice their services or goods using the e-CF will be exempt from the 5% income tax withholding on government payments, as established in Law 11-92 of 16 May 1992, which approves the Tax Code of the Dominican Republic.