The electronic invoice consolidates in Uruguay. The use of electronic invoicing will come into force for companies billing more than 305,000 UI (€6,000 approximately), next December 1, 2020

With this last one, the implementation plan introduced gradually by the DGI (General Tax Directory), the tax authority in Uruguay, will come to an end. 

The electronic invoice in Uruguay

In 2016, the DGI initiated the “incorporation timeline” to determine which taxpayers should start issuing electronic invoices. It started with companies processing more than 7M UI, approximately €138,000, allowing more time for small companies to adapt their systems. After this last implementation stage, it is expected that all taxpayers will use the electronic invoice to communicate with the tax authorities (B2G). 

At present, the electronic invoicing system in Uruguay uses the CFE, electronic tax receipts, to issue and receive invoices. CFEs use the standard XML format defined by the DGI and must include an electronic signature issued by a certified entity in Uruguay. 

To adhere to the CFE emission system, taxpayers have to be previously authorized by the DGI and comply with the tax requirements. 

Benefits for companies

The usage of the electronic invoice provides multiple benefits to companies. From the digitalization and efficiency of processes to a cut in administrative costs thanks to the automatic reconciliation of invoices and the reduction of paper and physical storage costs. Furthermore, it adds extra advantages, such as more visibility and traceability of invoices. 

With this system, the DGI wants to reduce operating costs for taxpayers and the state alike and, at the same time, contribute to the mitigation of tax evasion in the country and an environmental impact cut thanks to the reduction of paper. 

The Uruguayan electronic invoicing system matches other Latinoamerican countries, such as Brasil and Mexico, where the electronic invoice is widely used.