Argentina is one of the first countries in South America to adopt an e-invoicing system for businesses. The country introduced an optional e-invoicing system in 2003 to digitize its taxation with the intention of rolling out legislation to make it mandatory in the coming years.
E-invoicing in the country is managed by rules laid down by AFIP (Administración Federal de Ingresos Públicos or Federal Administration for Public Revenue).
The e-invoicing system became mandatory for all businesses operating from Argentina in July 2015. All export invoices, including a cash receipt, credit memo, and debit note, are also included in the e-invoicing system. The digital invoices, also known as eFactura, must be authenticated by the AFIP portal.
The companies registered in the country must file for an electronic authorization code (CAE) with the tax administration for each invoice. The businesses must conform to the AFIP that the invoice was issued via a report.
While the e-invoicing system in the country has been in operation for a few years, it is still in its infancy. Businesses need proper guidance and help to ensure that the invoices they issue conform to the regulations.
In this article, let’s talk in detail about the e-invoicing system of Argentina and how you can send compliant digital invoices in the country.
Is electronic invoicing mandatory in Argentina?
The use of e-invoicing has become increasingly popular worldwide as it offers many advantages, including faster processing times, reduced errors, and improved efficiency.
Argentina is one of the first countries in South America that has adopted e-invoicing as a mandatory requirement for businesses operating within its borders. It was initially implemented in 2015 with the Electronic Tax Receipt (Comprobante Fiscal Electronico or CFE) system, which was created to help streamline the country's tax collection process.
The Comprobante Fiscal Electronico requires all businesses in Argentina to issue export invoices electronically for all transactions, including sales and purchases. The AFIP manages the system, which oversees tax collection and compliance in the country.
Using digital invoicing in Argentina has made it easier for the government to track tax compliance and reduce tax evasion. By having all transactions recorded electronically, the government can more easily monitor and enforce tax laws, which can help to increase revenue for the country.
While digital invoicing is mandatory in Argentina, it is important to note that different requirements depend on the business's size.
For example, small businesses with annual revenues of less than 2 million Argentine pesos are only required to issue electronic receipts for in-person transactions. In contrast, larger businesses must issue digital invoices for all transactions.
Argentina mandates the use of QR codes on digital invoices. The AFIP introduced the requirement in 2019 as part of efforts to simplify tax reporting and reduce fraud.
Businesses must ensure that the QR code is included on all digital invoices in Argentina. The QR code must be generated using the AFIP's online tool, which allows businesses to enter the required invoice information and generate a QR or bar code that meets the AFIP's specifications.
In addition, businesses operating in multiple provinces in Argentina may be subject to different requirements, as each province has its tax laws and regulations.
How to send compliant e-invoices in Argentina?
Sending a compliant electronic invoice in Argentina requires businesses to follow specific rules and regulations set by the AFIP. The business might incur hefty penalties if the invoices fail to comply with the rules and regulations.
In Argentina, specific electronic formats must be used when issuing electronic invoices, as mandated by the Federal Tax Authority (AFIP). The AFIP established a standard format for electronic invoices, the Comprobante Electrónico (CE) or the Comprobante Factura Electrónica (CFE).
The CFE is a file in XML format containing all the information required for the invoice, including the issuer's and receiver's identification, the invoice date, a description of the goods or services tended, the invoice amount, and the tax amount. The CFE also includes an electronic signature, guaranteeing the authenticity and integrity of the XML file.
Businesses can use their in-house system or one of the many authorized e-invoicing solutions offered by third-party providers to generate CFE invoices in XML format. These solutions must be certified by the AFIP to ensure they comply with all digital invoicing regulations.
Here are the steps businesses must follow to comply with e-invoicing requirements in Argentina.
Step 1: Obtain a valid digital certificate
Businesses must obtain a digital certificate (certificado fiscal digital) that verifies their identity to send digital invoices in Argentina.
The certificate is used to sign the invoice digitally and ensures the document's authenticity. The AFIP issues the certificate.
A CAE (Código de Autorización Electrónico) code is a unique authorization code issued by the AFIP that allows a business to issue an invoice for the sale of goods or services.
The CAE code is required for certain invoices, such as the A, B, and C types used for transactions with registered small taxpayers and final consumers.
Step 2: Use an authorized service provider
In Argentina, businesses must use an authorized service provider (ASP) to send digital invoices. The ASP provides intermediary web services between the business and the AFIP and ensures that the invoices comply with regulations.
Step 3: Include all required information
An electronic invoice in Argentina must include certain information, such as the business name, tax identification number (fiscal key or clave fiscal), invoice number, date of issuance, description of goods or services, and total amount.
Businesses must ensure that all required information is included in the e-invoice.
Step 4: Validate the e-invoice in XML format
Before sending the e-invoice, businesses must validate the document using the AFIP's online validation tool. The process ensures that the e-invoice complies with all regulations and will be accepted by the AFIP.
If it is not validated, the system won’t be able to accept the e-invoice.
Step 5: Send the e-invoice to the recipient
Once the e-invoice has been validated, it can be sent to the recipient. The e-invoice can be sent through various methods, such as email or the ASP's platform.
Step 6: Keep records
Businesses must keep records of all invoices sent and received for 10 years. These records must be kept in a digital format and made available to the AFIP upon request.
In addition to these steps, businesses may consider using an e-invoicing platform like Storecove to help simplify the process of sending compliant invoices.
We can help you automate many steps in e-invoicing, such as validation and record-keeping. They can help ensure that the invoices are fully compliant with regulations.
Also, exporting goods from Argentina requires the issuance of type-E export invoices, also known as a "comprobante de exportación."
This document serves as proof of the export operation and includes information about the goods being exported, the price, the destination, and the parties involved in the transaction.
Also, a limited invoice (factura C) is a simplified tax invoice used for retail sales to final consumers or transactions with individuals who are not registered as taxpayers. This type of invoice is also known as a "ticket factura" or "recibo factura."
Characteristics of the electronic invoice in Argentina
Like most other countries that have embraced the e-invoicing system, Argentina requires invoices to follow a specific format. If your invoices are not in a specific format, they might not be accepted by the AFIP.
Here are some important characteristics all invoices issued by businesses operating in Argentina must have.
In Argentina, digital invoices must be signed digitally using a digital certificate that verifies the sender's identity. It ensures the authenticity and integrity of the e-invoice and helps to prevent fraud.
Authorized web service providers
Businesses in Argentina must use an authorized web services provider (ASP) to send invoices.
Unique invoice number
Each e-invoice sent in Argentina must have a unique invoice number, which the AFIP assigns. This helps prevent invoice duplication and makes tracking and reconciling transactions easier.
E-invoices in Argentina must include certain information, such as the business name, tax identification number, invoice number, date of issuance, description of goods or services, and total amount. The AFIP requires this information to ensure compliance with tax regulations.
Before sending the e-invoice, businesses in Argentina must validate the document using the AFIP's online validation tool. The process ensures that the e-invoice complies with all regulations and will be accepted by the AFIP.
Businesses in Argentina must also report e-invoice information to the AFIP monthly. The information includes details about the invoices sent and received and any discrepancies or errors identified.
Digital invoices in Argentina are designed to be interoperable, which means they can be sent and received by different systems and platforms. It helps to facilitate the exchange of invoices between businesses and ensures that the process is seamless and efficient.
Electronic invoicing in Argentina should be designed to ensure compliance with tax regulations, reduce administrative burdens, and improve efficiency.
By following these characteristics, businesses can ensure that their invoices are fully compliant with regulations and contribute to improving the country's tax collection system.
What should businesses do to comply with the e-invoice regulations in Argentina?
Businesses need a digital certificate to generate digital invoices and a secure signature. This certificate can be obtained from a Certification Authority (CA) authorized by the Argentine government.
Apart from fulfilling this requirement, all businesses must register with the Federal Taxpayer Registry (Registro Federal de Contribuyentes, or "RFC") to obtain a Tax Identification Number (TIN) before they can issue invoices.
Businesses can use any of the authorized invoicing solutions offered by third-party providers. However, these solutions must be certified by the AFIP.
Another thing businesses must do is comply with all invoicing regulations, including the mandatory use of certain data fields, specific formats, and deadlines for submitting electronic invoices.
Get Started with the e-invoicing system
Implementing electronic invoicing in Argentina has significantly changed how businesses operate, particularly in invoicing processes. The shift to electronic invoicing has brought many benefits, including increased efficiency, reduced costs, and errors in record-keeping.
However, compliance with digital invoicing regulations is critical for businesses to avoid penalties and fines.
Businesses must obtain a certificate, register with the Federal Taxpayer Registry (AFIP), choose an authorized e-invoicing solution, generate electronic invoices, keep documentation, and comply with regulations.
Professionals like Storecove can support and guide your business in sending and receiving e-invoices in Argentina.
Talk to our e-invoicing experts for more information and/or guidance.
More information about e-invoicing in Argentina?
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