Starting today, September 1st, all taxpayers, individuals and corporations, with ID ending on 1,2 or 3 must implement the electronic invoices.

Treasury in Costa Rica began the process in January this year with the obligation for all members of the health service and continued with the inclusion of professionals in different areas; these next three months will conclude the process, making it an obligation for all other individuals and corporations that weren’t included in the categories previously added; the idea is that by November 1st all taxpayers are using the electronic system.

Treasury will be applying economic and administrative sanctions to all those that do not comply with this norm.

“There are two types of fines, the first one for not having registered in the electronic invoicing system in the date set for each sector, which would be of 2% of the income reported in last years’ Income Tax Declaration, with a minimum equivalent to three base salaries ₡1,278,600 (approximately $2,235.00 USD) and a maximum of 100 base salaries, ₡43,620,000.00 (approximately $76, 238.00)”, explained Dunia Zamora from the Public Accountants Association.

“The second one is the sanction for not issuing a valid (electronic) invoice to a client, or not issuing it at all, meaning, issuing a paper invoice even though they should already be issuing electronic invoices according to law or not issuing either. The first foul means a fine equivalent to two base salaries, and in the event of second failure to fulfill the authority will proceed with the closure of the business for up to five days”.

The electronic invoice is generated when a sale of goods or services is completed; the invoice is delivered to the consumer electronically.

Several sectors are concerned about whether Treasury will have the capacity to handle all the electronic information. All contributors must have their own software system to issue the invoices following Treasury’s criteria, or they have the possibility of using the system made available by Treasury. Provider invoices must be accepted and entered in the system as well by each contributor in order for these to be accepted as deductible expenses.