What is electronic invoicing?
Electronic Invoicing is a fundamental process in the commercial field that consists of the generation of an electronic document that certifies the sale of a good or service, as well as the validation of purchases and the receipt of electronic documents from suppliers.
Currently, most taxpayers are legally required to adopt e-invoicing, although there are some exceptions. These exceptions cover those designated by law as non-issuing electronic receivers, as well as those who have obtained special authorization from the tax administration to continue issuing invoices manually. A clear example is companies under the simplified regime. In addition, the electronic document called "Electronic Purchase Invoice" has been implemented to record the purchases of these clients who are not required to issue electronic documents.
Basic concepts to understand electronic invoicing in Costa Rica
To understand electronic invoicing in Costa Rica, it is essential to become familiar with certain key concepts. Next, we present these concepts:
XML file
It comes from Extensible Markup Language, it is a universal format for documents and structured data on the Internet. This metalanguage provides a way to apply labels to describe the parts that make up a document, also allowing the exchange of structured information between different platforms.
Digital signature
Set of data associated with an electronic document, which allows the signer (authorship) to be identified, the integrity of the message to be verified and the actor to be legally linked to the document.
Electronic receipt
Electronic file in XML format that complies with the legal and regulatory requirements established in this resolution, for invoices, tickets, credit notes and debit notes, guaranteeing the authenticity of their origin and the integrity of their content.
Tax type
In Costa Rica, the tax system collects taxes in two ways: directly from people and companies, or indirectly through purchases and consumption. Direct taxes are applied to income and property, while indirect taxes are paid when purchasing goods and services.
Direct
- Income tax
- Withholding at source
- Income from securities (or others) and guarantees for bills of exchange, repurchase operations or securities reports
- Taxes on returns and capital gains from investment funds
- Transfer of real estate
- Vehicle transfer
Indirect
- Sales taxes
- Selective consumption taxes
- Single taxes on fuels
- Excise tax on alcoholic beverages
- Special tax on non-alcoholic beverages and toilet soaps.
Operation of the electronic billing system in Costa Rica
In Costa Rica, the electronic billing process is administered by the Ministry of Finance, which is responsible for receiving and verifying billing documents. In our Odoo system, the flow when creating an electronic invoice is very simple:
1. The company makes a sale and when generating its invoice, it sends this information to the Ministry of Finance in an XML file for validation. This is a process that is easily executed through the Odoo system.
2. The Ministry of Finance has up to 3 hours to validate the invoice and send a confirmation or rejection, along with sending the invoice to the recipient, the status is visible within the Odoo system.
3. Once accepted, the Ministry of Finance returns the results and the corresponding information, which can be used to carry out the relevant audits that the company needs.
It is important that recipients confirm or reject invoices within the first 8 business days of the month following the transaction. If an invoice is rejected, a new confirmation message must be sent, as established by resolution DGT-R-063-2018. However, for most companies, this practice is no longer necessary.
The obligation to confirm or reject invoices is mainly applicable to companies considered large taxpayers or those that enjoy some tax benefits, such as exemptions. Outside of that, acceptance is taken for granted unless the respective rejection is made.
It is important to keep in mind that all electronic documents must have the acceptance of the Ministry of Finance to be valid as support for tax credits and deductible expenses. Without this acceptance message, they cannot be used for these purposes. However, some accountants decide to perform receipt (confirmation or rejection) even though they are not required to do so.
The implementation of electronic invoicing is essential for every company. Using a platform like Odoo will facilitate the automation of accounting processes, thus ensuring compliance with tax obligations efficiently and accurately.
