Mandatory nature of the electronic invoice in Chile

As of 1 January 2021, issuing electronic invoices for sales and services in Chile is mandatory for taxpayers that invoice electronically. For taxpayers that do not issue electronic invoices, said measure is mandatory as of 1 March 2021.

Electronic invoicing started in 2014 in Chile and was gradually implemented until its completion in 2018. Electronic invoicing is an improvement on innovation that joins this previous effort. 

Another obligation that arose is the obligation to specify, on the invoice, the amount that corresponds to 19% of the VAT paid, so it will be possible to know which amount corresponds to taxes.

With this innovation, the trader can send the invoice to consumers via WhatsApp or by email.

Some of the advantages of electronic invoices are:

• In practical terms, it entails simplicity in the digital record of the documentation. The monthly invoice ledger will no longer have to be created manually. However, from now on, purchases and sale ledgers can be reviewed online and the information can be linked directly to the Internal Revenue Service.
• Digital storage of information: prior to the issuance of electronic invoices, there were various obligations related to paper invoices, such as the obligation to print tax documents, bring said documents in person to the Internal Revenue Service for stamping, as well as the obligation to keep the originals for 6 years and, in some cases, even longer, with significant storage costs. This disappears with the digital storage and recording of information.
• In terms of collection, it entails the formalisation of informal trade with its consequent increase in collection.

To achieve this goal, the Internal Revenue Service has provided a free mobile application that issues electronic documents. Users can also choose private electronic invoice providers, of which there are several in the market.

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