E-invoicing in Guatemala: Companies must act now

From 1 January 2023, companies in Guatemala will only be able to issue e-invoices. This is the only way tax documents may be issued from this date.

Electronic invoices (factura electrónica en línea, FEL) promote greater agility in accounting. All taxpayers in the general VAT scheme have been incorporated since 1 July 2022. Small taxpayers, who were not yet registered in the electronic system, have four more months to join the system, after which paper or physical invoices will be eliminated.

Guatemala is no exception in Latin America in implementing 100% e-invoicing, which will change the role of accountants and auditors significantly. These must adopt a review and analysis approach, rather than an operational approach.

E-invoicing for more transparency and simplified workflows

For those who keep account records, as well as international auditing firms such as ECOVIS, who carry out due diligence to qualify potential suppliers or contractors of international groups, or for acquisitions and mergers, the electronic tools of the tax administration (Superintendencia de Administración Tributaria, SAT) are already helping in several areas, including tax solvency reviews and the unified tax registry (Registro Tributario Unificado, RTU). These electronic tools allow the complete validation of the information, without the possibility of the data being altered.

Since 2019, different economic sectors have been incorporated into FEL electronic invoicing in Guatemala, including Government providers and suppliers of professional services, which has promoted the transparency and traceability of transactions.

We can support you with the introduction of the e-invoicing system FEL in Guatemala.

Byron Mendez Sagastume, CEO, Managing Partner, ECOVIS Guatemala, Guatemala City, Guatemala

Financial incentive for small taxpayers

With Decree 7-2019, SAT made the electronic system available for small taxpayers, initially incentivising them with a payment rate of 4% instead of 5% on monthly sales for those who adopted the system.

On 23 May 2022, Government Agreement 125-2022 was published, which contains the regulations of the Tax Simplification Law to update the procedures for small electronic taxpayers, including the agricultural scheme, enforcing the use of electronic systems and establishing the FEL electronic invoicing system as a prerequisite.

As of 31 May 2022, 351,932 small taxpayers had embraced this online system, because it is free of charge and electronic documents may be issued from the SAT web site and the mobile app set up for this purpose.

For further information please contact:

Byron Mendez Sagastume, CEO, Managing Partner, ECOVIS GUATEMALA, Guatemala City, Guatemala, Central America
Email: byron.mendez@ecovis.gt