E-invoicing, or electronic invoicing, is a process by which businesses create, send, and receive invoices electronically, without the need for paper-based documents. In El Salvador, e-invoicing is regulated by the Tax Administration Superintendent (SAT) and is mandatory for all taxpayers.
Here’s how e-invoicing works in El Salvador:
- Register with the SAT: To start using e-invoicing, businesses must register with the SAT and obtain a digital certificate. This certificate is used to sign and authenticate electronic documents.
- Create an electronic invoice: Once registered, businesses can create electronic invoices using their accounting software or the SAT’s online platform. The electronic invoice must include specific information, such as the name and address of the buyer and seller, the date of the transaction, and the amount of the sale.
- Sign the invoice: The invoice must be signed with the digital certificate obtained in step 1. This ensures that the invoice is authentic and has not been tampered with.
- Submit the invoice: The electronic invoice must be submitted to the SAT’s electronic invoicing system. The system validates the invoice and issues a unique identification number, which serves as the invoice number.
- Send the invoice to the buyer: The seller must send the electronic invoice to the buyer. The buyer must also be registered with the SAT to receive electronic invoices.
- Store the invoice: Both the seller and buyer must keep a copy of the electronic invoice for a period of five years.
In summary, e-invoicing in El Salvador is a standardized and mandatory process for all taxpayers. It aims to streamline invoicing processes, reduce administrative burdens, and improve tax compliance.
