Everything you need to know to become an electronic taxpayer of the DGII in the Dominican Republic

In January 2020, the government of the Dominican Republic approved regulation 01-2020, which regulates the use of electronic invoicing. In practice, this law establishes the rules for Dominican companies to communicate electronically with the Directorate General of Internal Taxes (DGII). In other words, it establishes a legal framework for companies to become electronic taxpayers.

Currently, there are already more than 24 electronic taxpayers in the Dominican Republic and the DGII has received more than 44 million e-CFs. There are also providers that facilitate the connection between company – DGII. In fact, Voxel Caribe was the first provider certified by the DGII to issue e-CFs.

With all the experience gained, we have prepared a guide so that all Dominican companies that want to start issuing e-CFs can start the process without any doubts.

General information

How is electronic invoicing defined in the Dominican Republic?

Electronic invoicing is an invoicing modality that allows the exchange of electronic invoices in a standard format, offering greater security and information integrity.

What is an e-CF?

An e-CF is an electronic tax receipt. According to the DGII, an e-CF “is the digitally signed electronic document that certifies the transfer of goods, delivery in use or provision of services, and must always comply with the requirements established in the regulations established for these purposes in the Dominican Republic”. The e-CF replaces the NCF when a company becomes an electronic taxpayer.

What does it mean to become an electronic taxpayer or electronic issuer?

The electronic issuer is any taxpayer authorised by the DGII to issue e-CFs. The electronic taxpayer communicates the e-CFs to the DGII in real-time. And once the DGII has approved them, the e-CF or printed representation is delivered to the recipient.

About the process

What requirements must a company meet to become an electronic issuer?

Companies must meet the following requirements set by the DGII:

• Be registered in the National Register of Taxpayers (RNC).
• Be registered as a taxpayer with tax obligations.
• Be up to date in the fulfilment of tax obligations and formal duties.
• Have a digital certificate for tax processes.
• Comply with the technical requirements established by the Internal Revenue Service.
• Complete the Authorisation Request Form (FI-GDF-016).
• Satisfactorily pass the certification process in order to start issuing e-CFs.
• Be in compliance with the provisions of General Standard No. 06-2018 on Tax Vouchers.

What are the steps to become an electronic taxpayer?

1. Application: companies must fill in the application form FI-GDF-016. Through this form it will be verified that the company meets all the established requirements.
2. Test set: this is the stage through which it is verified that the company’s software is capable of implementing electronic invoicing.
3. Certification: after completing the test set, the applicant company receives accreditation as an electronic taxpayer.

In this regard, and with the aim of helping companies to make this technological leap, the DGII also certifies software providers. Voxel Caribe is one of them.

Which receipts can be issued electronically?

The types of e-CF that can be sent electronically are:

• 31 – Commercial invoices.
• 32 – Consumer invoices >250,000.
• 33 – Debit notes.
• 34 – Credit notes.
• 41 – Informal supplier.
• 43 – Petty expenses.
• 44 – Special schemes.
• 45 – Governmental.
• 46 – Exports.
• 47 – Abroad payments.

Can I choose which receipts to start with?

Yes, during this voluntary stage you are allowed to start with a group of customers or with the types of documents of your choice and then gradually expand it.

About the reports

What are the 607 and 608 reports like in the electronic scenario?

If a company is certified as an electronic taxpayer by the DGII, it will no longer have to file 607 and 608 reports.

What is the 606 report like in the electronic scenario?

Electronic taxpayers do not have to report electronic invoices received in the 606. Companies that do not yet communicate with the DGII electronically must keep reporting all their invoices received, both electronic and paper.

If I am not an electronic issuer, but I receive electronic invoices, do I have to enter them in the 606?

Yes, companies that are not yet electronic taxpayers must continue to report their complete 606 and 607 reports.

Other information of interest

What benefits will my company have if it becomes an electronic taxpayer?

The main benefits of becoming an electronic taxpayer and starting to work with electronic invoicing are:

• Reporting: elimination of the preparation of 607 and 608 reports. In addition, invoices that arrive electronically will not have to be included in the 606 report.
• Savings: in costs related to courier services, storage, expendable material, etc. No need to continue printing invoices if they are already electronic.
• Reduction of errors and, consequently, reduction in the number of corrective invoices.
• Reduction in the time it takes to send invoices. The process is immediate.
• Greater efficiency of the administrative team.
• Back Up: digital archive in baVel for 10 years of all electronic documents.
• Online communication with the DGII. Having all documents in order with the DGII’s acceptance dissipates the possibility of future penalties.
• Digitalisation. Opportunities to digitise and optimise your internal processes.
• Tax score in the virtual office: becoming an electronic taxpayer improves your tax score.

What happens if my customers cannot process an e-invoice?

If your customers do not yet process electronic invoices, you will be able to send them the printed invoice, now called a printed representation of the issued e-CF.

Can I replace my fiscal printers with electronic invoicing?

Yes, as 100% of invoices are sent electronically, you no longer need to use fiscal printers.

Voxel Caribe: leading e-invoicing provider in the Dominican Republic

Voxel Caribe has been promoting the use of electronic invoicing in the country for more than 8 years. And working to help companies in the digital transformation of all their back-office processes. More than 300 leading companies in the country are connected to Voxel Caribe’s baVel network, exchanging more than 14 million transactions.

In this line, Voxel Caribe is a DGII certified provider to issue tax receipts and has helped more than 10 companies to become electronic taxpayers of the DGII.

Contact Voxel Caribe if you want to become an electronic taxpayer of the DGII and start the digital transformation of your company.

La entrada DGII electronic taxpayer: most frequently asked questions se publicó primero en Voxel - Blog.

A few weeks ago, Voxel Caribe co-organised a webinar with Barna Management School. The online session entitled “New trends in electronic invoicing in the Dominican Republic” explored this new invoicing modality in the country.

In the online session we had the participation of Eladio Rodríguez (DGII), Natalia Bonilla (CLARO Dominicana), Eduardo Lovatón (Voxel Caribe) and Oscar Calderón (Barna) as moderator.

The rise of electronic invoicing in the Dominican Republic

In his introduction, Oscar Calderón explained that, in developed countries, 30% of invoices are already electronic. Along the same lines, Eladio Rodríguez pointed out that more than 10 countries in Latin America use mandatory electronic invoicing, and another 5 countries have a voluntary system.

Electronic invoicing is becoming more and more widespread. And the Dominican Republic is also making progress in this area. Since 2020, the country has had regulation 01-2020, which regulates the use of electronic invoicing. Previously, the DGII conducted a pilot test with 10 companies. Now, any taxpayer in the country can use electronic tax receipts (e-CF) to communicate with the DGII.

Currently, there are already more than 24 electronic taxpayers in the Dominican Republic and 47 more companies are being certified. The DGII has received more than 44 million e-CFs. And there are 3 certified software providers, the first of which was Voxel Caribe.

The experience of the first taxpayers

CLARO Dominicana was one of those companies that participated in the pilot and is currently an electronic taxpayer of the DGII. During the webinar, Natalia Bonilla explained her experience throughout the process. She also explained the benefits they have achieved in relation to end clients, management and communication with the DGII.

Eduardo Lovatón, Commercial Director at Voxel Caribe, provided the point of view of a certified supplier. Voxel Caribe is the first supplier certified by the DGII to issue tax receipts. Companies that decide to become electronic taxpayers can do so in two ways. On the one hand, they can develop a technical connection with the DGII. On the other hand, they can have the support of a certified provider and benefit from its experience and know-how. Some of the benefits of becoming an electronic taxpayer with Voxel Caribe include:

• Provide transparency between the company and the public administration.
• Elimination of 607 and 608 reports. In addition, invoices that arrive electronically should not be included in the 606 report.
• Savings in courier costs, storage costs, expendable material costs…
• Reduction of errors and rectifications and increased efficiency of the administrative team.
• Online communication with the DGII.
• Opportunities to automate processes.

Finally, Eladio Rodríguez reminded that all periods of voluntariness end in obligation. And all the speakers encouraged the audience to explore the benefits that electronic invoicing can bring to their business.

Watch this session online again here.

La entrada New trends in electronic invoicing in the Dominican Republic se publicó primero en Voxel - Blog.

Recently, Voxel Caribe and Adofintech organised a webinar to discuss the latest developments in electronic invoicing in the Dominican Republic. More specifically, we discussed the details required to become an electronic taxpayer of the DGII. To make the session more practical, we had the experience of Dominican Watchman, one of the first Dominican companies to communicate with the DGII electronically.

“In the not so distant future, electronic invoicing will cease to be voluntary and will become mandatory. This is what has happened in all the countries in the region that have started this process (…). There is an invaluable opportunity to take advantage of this process now before we have to do it quickly”, reflected Virginia Velázquez, Director of Adofintech.

Electronic invoicing in the Dominican Republic is here to stay. This is confirmed by the experience of Voxel Caribe, which has been offering this service in the country for more than 8 years. In the words of Gina Lovatón, VP of Voxel Caribe, “There are hundreds of companies that have been using electronic invoicing for years. And they do it because of the efficiency it generates. These companies receive so many invoices that having to check them by hand one by one requires processes, re-processing and errors. All paper invoices need to be checked by someone else. On the other hand, an electronic invoice is not only useful for the DGII to be informed, but also for companies to process them electronically and make automatic validations”.

In this process, the role of Voxel Caribe and its electronic invoicing platform baVel is to connect companies with other companies or with the public administration. “Thanks to baVel, the invoice issued by your system (SAP, Navision, Sage…) can be read by another system. baVel encrypts and translates the invoices so that they can be delivered to the recipient. We are an electronic authenticator. We are the means that helps you certify and deliver the different invoices,” explained Lovatón of Voxel Caribe.

Benefits of becoming an electronic taxpayer of the DGII

Following the completion of the e-invoicing pilot, any DGII taxpayer can now become an electronic taxpayer. This means communicating with the DGII electronically. With this step, the DGII seeks to have greater control over the country’s transactions and to avoid tax fraud. But for businesses, there are also several benefits:

• Reporting: the need to generate 606, 607 and 608 reports is eliminated.
• Savings: by not requiring the filing of physical invoices. Invoices are stored in electronic format in a digital archive.
• Errors / Rectifications: the status of electronic invoices does not change, since when an invoice is received the DGII has already accepted it.
• Back up: baVel will keep an additional copy to the one the company has for 10 years.
• Online communication with the DGII: having all documents in order and with the DGII’s approval dissipates the possibility of future penalties.
• Digitalisation opportunity: this project is also an opportunity to automate your company’s internal processes.

NCF vs. e-CF

Gilberto Calderón, Product Analyst at Voxel Caribe, intervened in the discussion to give details of the technical parts of the project. “The first change made by the DGII during the pilot was the creation of the new nomenclature: from B01 (NCF) to E31 (e-CF)”.

“To guarantee the security of the communication, digital certificates are used to add a digital signature to the document. (…) The digital signature guarantees that the document has not been modified and that the issuer is who it says it is”, Calderón explained.

The electronic invoice can be consulted through its printed representation. The printed representation of the electronic invoice incorporates a QR code that allows the status of the invoice to be consulted in real time.

The procedure to start the DGII electronic taxpayer certification is simple. The first step is to fill in a form with basic information about your company. Then, the DGII will give you access to a test environment to check if your company is ready. And finally the certification is issued and the taxpayer is accredited as an electronic issuer. “Clients who work with baVel do not need to go through the whole process of the initial test set because it is a stage that we have already passed at baVel (…) Now that we have experience, the deployment of a new electronic taxpayer can take less than a month“, explained Gilberto from Voxel Caribe.

A case study: Dominican Watchman

Eduardo Lovatón, Commercial Director at Voxel Caribe, and Caury de los Santos, Director of Administration and Finances at Dominican Watchman, shared a real case study with us.

Dominican Watchman is one of the first companies to become an electronic taxpayer of the DGII and has carried out the entire process hand in hand with Voxel Caribe and the baVel platform.

“We have a client portfolio that is used to paper, bundles of invoices, credit notes, delays in payments because the invoice was lost…”, explained Caury de los Santos of Dominican Watchman. “Before working with electronic invoicing we had to generate the invoice, print it, audit it, package it and send it. And then wait for confirmation and payment”.

And when asked about the benefits and advantages, de los Santos explained “the first advantage is the reduction in the time it takes to deliver the invoice. The second is the evolution in cash, the electronic invoice has accelerated collection. (…) On the reporting side, we have also improved. What used to take a lot of stress to prepare and validate the 607 is now reduced to a few minutes of review”.

The virtual session concluded with a round of questions from the attendees, who were very interested in this new DGII project. We also had the intervention of Eladio Rodríguez, Invoicing Manager at the DGII, who took the opportunity to congratulate Voxel Caribe for successfully completing the certification process to become an authorised supplier.

Watch the digital session again here:

Voxel Caribe is the first provider certified by the DGII to issue electronic tax receipts (e-CF) in the Dominican Republic. If you want us to help your company to become an electronic taxpayer of the DGII you can write to us at bavelcaribe@voxelgroup.net or visit our website.

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