Top Questions to Ask as Uruguay Expands E-Invoicing Requirements

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E-invoicing has become a requirement for companies operating in Latin America. What started in Brazil in 2007 has quickly expanded across the region, with Peru, Uruguay and Ecuador beginning to enforce mandates this year. In part one of this four part series, we explored the commonalities between these regulations, including their purpose – increasing tax revenues by enforcing compliance. In part three of this series, we’ll take a closer look at the requirements specific to Uruguay.

This year, Uruguay has added 1,000 new companies to its list of those required to submit invoices electronically. These companies join 1,687 others already operating under the government system or in the midst of the testing and approval process.

Key requirements in Uruguay include:

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  • Accounts receivable: Invoices must be sent to the Dirección General Impositiva (DGI), Uruguay’s tax authority, and must be approved with an acknowledgement of receipt (Acuse de Recibo).
  
  
  • Accounts payable: When receiving invoices, you must check the validation of all of the fields with the DGI.
  
  
  • Certification process: Each company’s compliance process, including invoice submissions and approvals, must be tested and certified before beginning e-invoicing.
  
  
  • Contingency: Contingency processes are required to report and submit all documents during system outages.
  
  
  • Storage: Files must be archived for 2-5 years, depending of the type of document.
  
  
  
  

Your compliance solution in Uruguay should not only meet the requirements in this country, but should integrate seamlessly within your existing systems. Here are the top five questions to consider as you evaluate solutions.

1) Since these regulations change frequently, does the solution support change management at a single fixed fee? Or, will each change require a significant investment?

2) Does the solution offer both online and offline contingency processes?

3) Does the system work within your existing ERP processes? Or, does it require external systems that ultimately risk data manipulation and visibility gaps?

4) Does the solution offer one end-to-end platform for all of the requirements in Uruguay, including e-invoicing, receivables, payables, transit and reporting? Or, are you maintaining multiple systems?

5) Does your solution offer 24/7 local and English language support?

Managing compliance in Latin America is no easy task, and only continues to get more challenging as the regulations spread throughout the region. It’s important that your compliance partner is proactive, ensuring that you are making the most of your solution and staying ahead of new mandates.