- The Dominican Republic issued General Standard No. 02-2026 on Sept. 16, clarifying ITBIS withholding rules for e-invoiced transactions.
- ITBIS withholding agents are not required to withhold ITBIS when paying authorized e-invoice issuers that issue an electronic tax receipt (e-CF).
- This exemption applies only to ITBIS withholding under General Rule No. 02-05, as amended, and does not affect other withholding or collection obligations.
- The standard took effect on the date of issuance.
Source: globalvatcompliance.com
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Dominican Republic removes specified ITBIS withholding for authorized e-invoice issuers
- General Standard No. 02-2026 clarifies that designated withholding agents do not withhold ITBIS when paying an authorized electronic invoice issuer that provides an e-CF.
- The exclusion is limited to withholding under General Rule No. 02-05 and its amendments.
- The measure took effect on 16 September 2026, the date on which the standard was issued. [globalvatc…liance.com]
Targeted exception for electronic tax receipts
The Dominican Republic’s General Directorate of Internal Revenue issued General Standard No. 02-2026 to clarify the interaction between ITBIS withholding and the country’s electronic invoicing framework. When a supplier is an authorized electronic invoice issuer and provides an electronic tax receipt, or e-CF, the designated payer does not apply the ITBIS withholding required under General Rule No. 02-05. [globalvatc…liance.com]
The measure should not be interpreted as a general exemption from all Dominican withholding or collection obligations. The source expressly limits the relief to the ITBIS withholding mechanism governed by General Rule No. 02-05 and its amendments. Other tax provisions can therefore continue to require withholding or collection. [globalvatc…liance.com]
Controls for accounts payable
Businesses should ensure that the system suppresses withholding only when the supplier is an authorized electronic issuer and the supporting document is a valid e-CF. Vendor status, document type and authority should be included in the withholding determination, rather than applying a general exemption to every invoice received electronically.
The standard was issued and became effective on 16 September 2026, although the supplied publisher reported it on 25 September. [globalvatc…liance.com]
External resources
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