The Electronic Invoicing Law is legislation that makes it mandatory to use the electronic invoice in the Dominican Republic as the means for documenting commercial transactions conducted in the country.
Law No. 32-23, on Electronic Invoicing, entered into force on 16 May 2023. Its main purpose is to modernize and streamline invoicing processes, thereby 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 implementation period
The periods for implementing the law began to be calculated as from its entry into force. The Directorate General of Internal Taxes (DGII) published the implementation schedule for taxpayers who are obligated to issue electronic tax receipts (e-CF).
Depending on the taxpayer category, the periods are the following:
- Large national taxpayers: they have a period of 12 months after enactment of the electronic invoicing law. These large taxpayers have been divided into three groups. The first group will have a deadline of 15 January 2024. The second group will have until 15 March 2024 to set up their electronic receipts. The third group has a period lasting until 15 May 2024. To check which group your company falls under, you can consult the attached link.
- Large local taxpayers and medium-sized national taxpayers: they have a period of 24 months after enactment of the electronic invoicing law. This means that these companies must become electronic taxpayers before 15 May 2025.
- Small, micro and unclassified enterprises: they have a period of 36 months after enactment of the electronic invoicing law. The margin for SMEs is 3 years, wherefore the deadline for these types of enterprises 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 electronic invoicing law is the granting of a tax incentive, which consists in a tax credit for taxpayers who adhere to the implementation schedule.
Taxpayers who are not yet obligated to issue electronic invoices but who would like to completely implement the system before the mandatory period arrives will have the incentives provided for in Article 38 et seq. This incentive ranges from RD$300,000 in the case of medium and small enterprises and up to RD$25,000 in the case of micro and unclassified enterprises. The DGII specified that these incentives work as a credit, and they may be applied to the following: advanced income tax payments; operational value added tax, income tax, and asset tax.
Tax exemptions: furthermore, Article 34 of the new law contemplates that Government suppliers who have been authorized as electronic issuers by the DGII and who invoice their service or good using the e-CF will be exempt from the 5% income tax withholding in Government payments, which is set forth in Law 11-92, of 16 May 1992, thereby approving the Tax Code of the Dominican Republic.
Voxel Caribe, your trusted partner
Voxel Caribe is the first supplier under electronic invoicing certified by the DGII. It is also the supplier that has accompanied the most companies in their successful transition to the electronic invoicing system. Some of our companies include the following: Centro Cuesta Nacional, Grupo Corripio, Nestlé Dominicana, Dominican Watchman, Cervecería Nacional Dominicana, Pedidas Ya Market, Tiendas La Nacional, Argos Dominicana, Gerdau Metaldom, Pala Pizza, S.A., Valiente Fernández, and Argos Dominicana, among others.
We would like to offer you the opportunity to join this group of electronic taxpayers and make your invoicing process an even more efficient experience. If you would like more information, visit this website or write to us at email@example.com.
At Voxel, we are committed to offering you an integrated and customized solution for your transition to electronic invoicing.