E-Invoicing in Costa Rica: Key Insights and Updates

E-invoicing has become an integral part of Costa Rica's tax system, changing the way businesses and the government interact through digital transactions. Since its introduction, the system has aimed to enhance tax compliance, optimize administrative processes, and reduce fraud. Discover how electronic invoicing operates in Costa Rica, along with its key components, benefits, and recent regulatory updates.

The Evolution of E-Invoicing in Costa Rica

The journey towards electronic invoicing in Costa Rica began in 2017 under the auspices of the General Directorate of Taxation (DGT). Initially launched as a phased adoption program across various sectors, the initiative culminated in 2018 with the mandate that all taxpayers must issue and receive electronic invoices.

How E-Invoicing Works

The e-invoicing process in Costa Rica relies on a systematic exchange of electronic documents, known as electronic vouchers. The general steps in the e-invoicing workflow are as follows:

• Submission: Taxpayers submit an XML file of the invoice to the Ministry of Finance for validation.
• Validation: The Ministry has up to three hours to review the invoice, issuing either an acceptance or rejection message. This confirmation, known as the Hacienda Message, is crucial for the validity of the invoice.
• Acceptance/Rejection: Once the invoice is validated, the recipient must send a message back to the Ministry indicating acceptance, partial acceptance, or rejection of the invoice within eight business days.

Key Messages in the Process

Two primary messages are essential in the e-invoicing flow:

• Hacienda Message: Issued by the Ministry of Finance, indicating the status of the invoice (accepted or rejected) after validation.
• Recipient Message: Sent by the recipient to confirm acceptance or rejection of the invoice.

Types of Electronic Receipts

In Costa Rica, electronic invoicing encompasses several document types, each serving specific purposes:

• Standard Invoice: Documents the sale of goods or services.
• General Electronic Invoice: Summarizes multiple sales under a generic tax ID for reporting purposes.
• Export Electronic Invoice: Details goods and services exported abroad.
• Purchase Electronic Invoice: Certifies purchases from exempt taxpayers.
• Credit and Debit Notes: Facilitate adjustments to previously issued invoices.
• Electronic Ticket: Supports transactions with final consumers.

September 2024 Regulatory Updates

On September 19, 2024, the Ministry of Finance released a draft of version 4.4 of the technical provisions regarding electronic invoices. This new regulation outlines the requirements for taxpayers and introduces authorized reference codes for credit and debit notes. Adhering to these codes is essential, as invoices containing unauthorized codes will be rejected. The public consultation for this draft is open until October 3, allowing stakeholders to provide feedback and insights.

The Catalog of Goods and Services

The Ministry of Finance and the Central Bank of Costa Rica have collaborated to create the Catalog of Goods and Services (CAByS). This catalog categorizes products and services sold in the country and assigns corresponding VAT rates. Taxpayers must include the appropriate CAByS code in their electronic invoices, ensuring compliance with tax regulations.

Benefits of Electronic Invoicing

The adoption of e-invoicing in Costa Rica offers many advantages for both public and private sectors:

• Cost Savings: Reduces expenses associated with paper, printing, delivery, and storage.
• Increased Productivity: Automation streamlines administrative tasks, allowing staff to focus on higher-value activities.
• Efficiency in Invoice Processing: Electronic documents facilitate automatic integration into accounting systems, reducing manual errors.
• Shorter Payment Cycles: Improved processing speeds lead to faster invoice delivery and collection.
• Enhanced Security: Digital signatures ensure the integrity and authenticity of invoices.
• Legal and Efficient Storage: Electronic documents can be securely stored and easily retrieved, minimizing the risk of loss associated with physical documents.

Current Status of E-Invoicing in Costa Rica

By embracing e-invoicing, the Costa Rican government aims to enhance tax compliance, reduce fraud, and foster a more efficient economic environment. The continuous evolution of the e-invoicing system, supported by regulations like the upcoming version 4.4, ensures that taxpayers are well-equipped to meet their obligations while benefiting from the efficiencies of digital invoicing.

Staying on top of these changes can be challenging. The Comarch EDI platform provides compliance in over 60 countries globally. Whether you're a large enterprise exchanging e-invoices in Costa Rica or a company planning to expand into new markets, our solution can help you manage your invoicing processes seamlessly and stay compliant with the latest regulations. Explore how Comarch can streamline your electronic data exchange and ensure your business remains ahead of the curve.

There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.