As e-invoicing mandates continue to spread throughout Latin America, it’s becoming increasingly important for companies to have a regional compliance partner that proactively monitors and responds to the ever-changing compliance landscape. As we explored previously, three countries are beginning to enforce compliance measures this year: Peru, Uruguay and Ecuador. While the legislation in each country affects businesses similarly and was introduced for a common purpose – ensuring the accuracy of value-added tax deductions and auditing and fining companies for errors – the specifics of each legislation can vary greatly.
In part two of our four-part series, we’ll examine the mandates in Peru. Peru began testing e-invoicing mandates in 2014 with a group of 239 companies. This quarter, the rollout expands to 200 large multinationals and 5,000 medium companies. Later in the year, an additional 750 companies will be added to that group. Essentially, if your income was 150 UIT or greater last year, you will be required to record sales and purchases electronically.
Key requirements in Peru include:
- Accounts receivable: Invoices must be submitted to and approved by the SUNAT (Peru’s tax authority) prior to sending to the customer.
- Shipping: When transporting goods, a government approved invoice and bill of lading (Guia De Remision) must accompany the shipment.
- Certification: Your compliance program, including invoice submission, payables, reporting and contingency planning must be tested and certified. You have 25 days to complete this process from the date you file an application with the government.
- Contingency: If systems are down, you must send the SUNAT a daily summary of records.
- Storage: Records must be stored for four years and must be available to clients via the government’s web service for one year.
- Cancellations: You only have 72 hours after receiving an invoice to dispute or cancel it; otherwise, the SUNAT considers it verified and approved.
As you evaluate solutions for Peru compliance, here are five key questions to ask:
1) Does your solution integrate with your existing ERP framework, eliminating the risk of data manipulation in external systems?
2) Does your solution support change management for frequent updates to the Peruvian requirements?
3) Do you have one end-to-end platform for all components of the Peru mandates, including e-invoicing, receivables, payables, transit and reporting? Or, are you maintaining multiple systems?
4) Will you be able to get support when you need it?
5) Do you know what to expect in terms of budget? Or, will each regulation change require a substantial additional expenditure?
As these mandates continue to change, it’s important to select a proactive partner that will help you navigate these murky waters seamlessly.