Peru has some of the most advanced electronic invoicing systems in Latin America. The implementation process began in early 2017, and all taxpayers in Peru must issue e-invoices through the Sistema de Emisión Electrónica (SEE).
In 2017, Peru made it mandatory for businesses with an annual turnover of 75 UIT to send and receive electronic invoices. 1 UIT is equivalent to 4,950 PEN.
The Peruvian tax administration, Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT) had in 2010 introduced Electronic Payment Receipt (CPE) and has gradually made this mandatory for all businesses.
The last phase of the implementation process was in June 2022, although there have been some exceptions and frequent announcements from SUNAT.
Peru has made massive progress in e-invoicing. Using paper for invoices came to an end as early as 2018. The country also allows taxpayers to use an Electronic Services Operator (OSE) to validate their invoices and ensure compliance.
In this post, we’ll look at:
- Implementation of e-invoicing in Peru, including the requirements and who it is mandatory for
- How to send a compliant electronic invoice in Peru and the role Storecove plays
- The penalties you risk facing for non-compliance
Is e-invoicing in Peru mandatory?
The Peruvian government began implementing e-invoicing in 2017 and currently includes businesses of all sizes.
All businesses in Peru are required to use the government’s e-invoicing process and adhere to the set requirements.
Here are the major steps of e-invoicing implementation in Peru:
Legality of e-invoices in Peru in 2000
E-invoicing became legal in Peru in 2000, making it one of the first countries to adopt the technology. Since technology back then was less advanced than today, it was optional for businesses to use e-invoices.
Introduction of CPE in 2010
The Peruvian tax authority introduced Electronic Payment Receipt (CPE) for large businesses with an annual turnover of 150 UIT in 2010.
CPE documents include sales invoices and other documents, such as:
A waybill is a document that contains information about a shipment, such as its origin, route, contact information, and destination. It also contains accurate details about the recipient and shipper.
A waybill is issued the moment a shipper decides to send a consignment. It is attached to the exterior of the shipment package for easy access by customs officials and other relevant parties.
The main details of a waybill are the consignor and consignee information.
Sales tickets for point-of-sale Boletas
A POS (point of sale) is when a customer is executing payment for goods or services whose sales tax may be payable. It can be a physical device or the checkout point in most online stores.
Most businesses using cash registers have replaced them with electronic POS stations that can process credit and debit card payments.
POS software is advancing and includes monitoring inventory and buying trends, collecting marketing data, and tracking pricing accuracy. It helps retailers keep track of their businesses’ performance.
A withholding voucher allows a person making a payment to deduct tax before paying the due amount. They then generate a withholding tax voucher and send it to the payee.
Other types of CPEs include:
- Public service bill
- Collection vouchers
- Electronic purchase settlements
Linking the e-invoicing system to Peru’s tax authority database in 2015
In 2015, the government streamlined business tax processes by linking its electronic invoicing system, Sistema de Emisión Electrónica (SEE), to the tax authorities’ database.
This made it easier for businesses to keep up with their taxes using the electronic invoice system.
Mandating e-invoicing for large businesses in 2017
Peru’s tax authorities mandated all companies with an annual turnover of 75 UIT and above to use the government e-invoicing system. By 2018, paper invoices no longer existed for these businesses.
Mandating e-invoicing for smaller businesses in 2022
The government introduced the latest requirements between April and June 2022. Companies with an annual turnover of below 23 UIT and those with between 23 UIT and 75 UIT had to start transmitting their CPEs to the Peruvian tax administration, SUNAT.
Introduction of an electronic transport document in 2022
SUNAT published a draft resolution in June 2022 announcing a new transport document. The electronic transport document (GRE) became effective on January 2023.
The document, like all CPEs, must have an electronic signature and must be transmitted through an OSE or SUNAT portal. It facilitates tracking and monitoring of goods in transit.
What are the requirements for e-invoicing in Peru?
Electronic invoicing in Peru has evolved to help combat tax fraud and evasion. It is mandatory for all buyers and suppliers, which helps the Peruvian tax authority in tax collection.
Let us look at the requirements every invoice issuer and recipient must fulfill:
Peru’s e-invoicing system requires all documents to be generated in UBL 2.1 format. This format uses a Collaboration Messaging Framework (CMK) to allow businesses to send transactions to buyers and receive confirmation from them.
After generating a UBL 2.1 document, you must add a digital signature that ensures confidentiality and authenticity. Anyone registered and using the SUNAT portal receives a unique digital signature.
The mandatory archiving period for e-invoices in Peru is five years. The Peruvian tax authority allows archiving abroad as long as you can provide the documents for download or sharing upon request.
SUNAT published an emergency decree 113-2021, activating Decree 050-2021 regarding the delivery time for electronic invoices and other CPEs. A business must deliver all documents within 24 hours of issuing an e-invoice.
The mandatory infrastructure for sending and receiving electronic invoices in Peru is the Sistema de Emisión Electrónica (SEE). However, the government allows businesses to use a third party, an Electronic Services Operator (OSE), to validate and ensure compliance.
You may also like: E-invoicing in Peru | Facts & Compliance
What businesses must comply with e-invoicing regulations in Peru?
Mandating e-invoicing in Peru started with large companies and has gone on to include even smaller businesses. Peru uses a tax unit value (Unidad Impositiva Tributaria- UIT) for various tax-related purposes.
The UIT for 2023 is PEN 4,950, which equates to $1,324. This is an increase from last year’s 4,600
Let us look at the different ranges of businesses that must comply with e-invoicing regulations in Peru and when this became mandatory.
Businesses with an annual turnover of over 75 UIT
Businesses with an annual turnover of over 75 UIT equate to almost 373,218 PEN ( $100,000). These are mainly large businesses with extensive processes and a huge cash flow.
This was the first group of companies the government made mandatory to use Peru’s e-invoicing system. The Peruvian tax authorities targeted this group of large taxpayers in 2017.
Businesses with an annual turnover of between 23 UIT and 75 UIT
Micro and small businesses with a yearly turnover of 113,850 PEN ($30,450) to 373,218 PEN ( $100,000) were required to send electronic invoices and notes from 1 January 2022.
The compliance deadline for transmitting other CPEs was 1 April 2022.
Businesses with an annual turnover of below 23 UIT
Businesses with an annual turnover of less than 113,850 PEN ($30,450) came last and were required to transmit electronic invoices and notes by 1 April 2022.
By 6 January, the last group had to issue electronic documents (CPEs) to the Peruvian tax authority through their portal or an Electronic Services Operator (OSE).
What should businesses do to comply with e-invoicing rules in Peru?
There are various steps every business operating in Peru has to take to issue electronic invoices and ensure tax compliance. They include:
Enroll in Peru’s e-invoicing system, Sistema de Emisión Electrónica (SEE)
The Peruvian tax authority, SUNAT, uses the Sistema de Emisión Electrónica (SEE) system to receive and process invoices. It was connected to their database in 2015 for easy access to information.
After enrolling in the system, the user’s proposed electronic invoice generation solution undergoes testing. SUNAT then issues the taxpayer with a unique and secure certificate to use when transmitting their documents.
Engage an electronic service provider (PSE)
An electronic service provider can be the provider of software for generating electronic invoices. They operate an electronic invoice system that can help you run your business by generating electronic documents seamlessly.
PSEs mainly ensure their systems generate electronic documents in UBL 2.0 format and adhere to other document regulations.
Engage an electronic services operator (OSE)
An electronic services operator is approved and authorized by SUNAT to validate an electronic invoice for tax compliance. After validation, they send the receipt to SUNAT and the recipient.
How to send compliant electronic invoices in Peru
The first step of sending an electronic invoice in Peru is registration with SUNAT to acquire a digital certificate. From there, you have two options for transmitting electronic invoices:
Directly to SUNAT
Peru’s tax authorities provide a portal where you can send compliant electronic invoices. Here are the steps involved:
Step 1: Generate the invoice
Find an electronic service provider (PSE) to help you use reliable accounting or invoicing software to generate documents in the required format.
It is mandatory to include information such as the supplier’s and recipient’s tax identification number (TIN), invoice date, and amount. You should also include the electronic signature for validation.
Step 2: Submit the invoice
Submit the invoice to SUNAT’s platform within 24 hours after issuance. SUNAT verifies the invoice, and you get a notification.
Step 3: Send the invoice
After validation, the invoice is ready, and you can send it to the recipient through a secure online portal or email. After sending the invoice, record it and store a copy for the minimum required archiving period.
Step 4: Report the invoice
Report the invoice and other tax information to SUNAT during your monthly tax returns.
Through an electronic services operator (OSE)
An OSE simply ensures you’re using the right format and keeping up with your taxes. It may sound simple, but it is a critical part of running any business that helps in tax compliance.
The process is almost similar to that of sending invoices directly to SUNAT. However, for this option, you engage a third party, such as Storecove, after drafting your invoice.
They validate the invoice and transfer it to SUNAT in UBL 2.0 format. After verification, you receive a confirmation of receipt (CDR), and the invoice is ready to be sent to the customer.
What is the penalty for not complying with e-invoicing regulations in Peru?
Failure to implement Peru’s e-invoicing system risks hefty financial penalties, reputational damage, business disruption, and even closure.
The Peruvian tax authority uses fiscal units for various offenses where one fiscal unit is equivalent to $600. The penalty for the first offense is 50% of the fiscal unit.
Repeated violations can easily lead to the closure of a company.
Takeaway: Avoid penalties by complying with e-invoicing regulations in Peru
Peru has some of the most advanced electronic invoicing systems in Latin America. The system used, Sistema de Emisión Electrónica (SEE), is so developed that it can accommodate all large and small businesses.
Ensuring firm tax compliance is a challenging feat. However, with this system, even business owners should rarely be on the wrong side of the authority if they use it appropriately.
At Storecove, we help you ensure your electronic invoices adhere to Peru’s regulations. This includes the format, information provided, and other relevant details.
We streamline e-invoicing processes and ensure you get a Peru-specific solution. Contact us today to get started!
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