E-invoicing in Panama is regulated by the Directorate General of Revenue (DGI), and it is mandatory for taxpayers who meet certain criteria. Here’s how it works:
- Obtain an electronic signature: Before issuing e-invoices, the taxpayer must obtain an electronic signature (Firma Electrónica Avanzada, FEA) from a certification authority authorized by the DGI. This signature will be used to sign the invoices electronically and guarantee their authenticity.
- Generate and sign the electronic invoice: The taxpayer generates the invoice in XML format using their invoicing software. The invoice must include specific information such as the taxpayer’s information, the buyer’s information, the invoice number, the date, the description of the products or services, and the total amount. The taxpayer signs the invoice electronically using their FEA.
- Submit the invoice to the DGI: The signed electronic invoice is sent to the DGI’s portal for validation and processing. The DGI will validate the invoice and issue a unique validation code (Código Único de Factura Electrónica, CUFE). The CUFE is a unique code that identifies the invoice and is required for subsequent transactions.
- Deliver the invoice to the buyer: The taxpayer delivers the electronic invoice to the buyer by email, electronic means, or any other agreed-upon means. The invoice must include the CUFE, which the buyer can use to verify the authenticity and validity of the invoice.
- Keep records: The taxpayer must keep a copy of the electronic invoice and related documents for at least seven years.
It’s important to note that e-invoicing is mandatory for certain taxpayers in Panama, including those with an annual turnover of $500,000 or more. However, smaller taxpayers can also choose to use e-invoicing voluntarily. The DGI provides detailed guidelines and technical specifications for e-invoicing on its website
All newsitems on E-Invoicing in Panama can be found HERE
