E-Invoicing, also known as electronic invoicing, is a method of creating, sending, and receiving invoices electronically. In Costa Rica, e-invoicing is mandatory for many businesses and is regulated by the Costa Rican tax authority, Dirección General de Tributación (DGT). Here is an overview of how e-invoicing works in Costa Rica:
- Registration: Before a business can start using e-invoicing, it must register with the DGT and obtain an electronic signature certificate.
- Invoice generation: Once registered, the business can generate electronic invoices using approved software that meets DGT requirements. The software must produce invoices in XML format, which is a standard format for electronic invoices.
- Sending the invoice: The electronic invoice is sent to the buyer via email or other electronic means. The invoice must include a digital signature and a unique identification code assigned by the DGT.
- Validation: The DGT validates the invoice and assigns it a unique serial number.
- Storage: The business must keep a copy of the invoice for five years, either electronically or in paper format.
- Reporting: The business must report the invoice to the DGT within eight calendar days after issuing it. The report must include information such as the date of issuance, amount, and taxpayer identification number (TIN) of both the buyer and seller.
E-Invoicing in Costa Rica is intended to reduce paperwork and increase efficiency in tax administration. The use of electronic invoices also helps to prevent fraud and evasion, as each invoice is assigned a unique identification code by the DGT. Businesses that fail to comply with e-invoicing requirements may face penalties and fines from the DGT.
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