19: Cash, Payables and Liquidity Management
countries designed different systems.
The systems in Chile and Brazil were
designed with several shared features. A
key difference between Chile and Brazil,
however, is what happens once an invoice
is submitted to the tax authority (SII).
Mexico is different: It designed a system
that outsources tasks to third parties
called Authorized Certification Providers
(Proveedores Autorizados de Certificación
or PAC).
Irrespective of how South-east Asian
nations choose to design the process,
the tax authority plays a pivotal role.
The tax authority needs to sign, time-
stamp and mark the e-invoice with a
unique authorisation code, then send
the e-invoice back to the supplier, all in a
matter of seconds.
What is the timeframe for mandating
e-invoicing?
E-invoicing does not occur at the snap
of a finger ... China, Australia and
Vietnam have reportedly conducted
pilot programs to examine the effects
of e-invoicing on both government and
business.
‘Almost all Latin American countries
decided to implement a pilot program
first. Government invites a select group
of companies to participate and provide
feedback. A pilot can take between 6
and 9 months, with the aim of creating a
solid regulation that can be implemented
for all companies. Some Latin American
countries used advisors to assist in
creating new regulations,’ says Mario
Fernández.
The second phase is a period
where companies can voluntarily register
e-invoices, followed by the last and
final phase, where the majority of the
businesses are required to register
e-invoices. There is normally an amnesty
period leading up to the date e-invoicing
becomes mandatory.
According to Fernández, ‘It can
take between 2 and 5 years, during
which time any company can implement
e-invoicing, but it is not mandatory.
And, after that, some Latin American
countries have implemented a
mandatory process.’
What are the considerations when
transitioning to e-invoicing?
The devil is in the detail.... There are
many stakeholders to consider, and the
timing of each task is critical. The key is
not to tackle too much, too soon.
Suppliers before buyers. It has
been easier to mandate e-invoicing
for small companies, as they have
fewer processes and procedures.
A portal and free hotline are good
ways to provide education on
e-invoicing. The larger companies,
which buy services from suppliers,
are better dealt with later, as these
stakeholders require more lead-time
to comply.
Allow exemptions. It is common for
countries mandating e-invoicing to
allow companies below a certain
threshold of annual revenue
to be exempt from registering
e-invoices. Chile and Mexico have
set thresholds, and Argentina has
industries that are exempt.
Mandate fiscal reporting.
Multinational corporations operating
in Mexico will be required to
file accounting information with
the tax authority by 2015. The
information required includes the
chart of accounts, as well as monthly
