Practical Problem – Rejecting Chilean Electronic Invoices

During 2014, Law No. 20,727, stipulated the mandatory use of the electronic invoices for Chilean companies, along with other electronic tax documents such as invoice settlements, debit and credit notes and purchase invoices. The new law would start gradually for larger companies and by January 2018 for all Chilean companies no matter the size.

The benefits of this new regulation are the following:

• It avoids the falsification of invoices and therefore, the fraudulent use of VAT credit.
• Saves time and money for taxpayers.
• Eliminates the risk of losing documents.
• It provides a digital storage of tax documents (DTE's) in the IRS electronic files.
• It allows the assignment of invoices through a simple manner and online (Factoring).