Monica Schpallir Calijuri

Digital tools, new communication channels, and the large increase of internal and external data sources have changed the economy and the society in general, creating new relationship among vendors, buyers, and tax administrations. The rapid pace at which technology develops and is incorporated into different areas of the economy provides numerous opportunities for tax agencies to capture and systematize large information flows using new tax management tools. The main goal of these technological innovations is to capture data, thereby simplifying compliance with tax obligations.

One example of the use of technology to increase compliance is the implementation of electronic invoices (e-invoices) in many countries of the LAC region. The trend started with Chile in 2003, followed by Argentina, which introduced the mandatory use of e-invoices for a specific group of taxpayers in 2007. Brazil in 2006, and Mexico in 2004 introduced the largest e-invoicing programs, adopting different validation models; in Brazil, the validation of information is made by tax administration; in Mexico, by authorized third parties. Both programs use digital signatures and cover the whole production chain until the final consumption of goods and services. In Mexico, e-invoicing is also used for the payroll process, with 21 million e-invoices issued daily. The website of “nota fiscal eletronica”ssss1 shows that more than 28 billion electronic invoices have been issued and validated since the program started.