overview of latin america electronic invoicing and tax reporting requirements

Latin America E-Invoicing Compliance Overview

INVOICEWARE INTERNATIONALGlobal Compliance - Simplified

INVOICEWARE INTERNATIONAL © 2016

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Latin America E-Invoicing & ReportingIt is All About Maximizing Tax Collection

Importance of VAT to Latin America Economies

Colombia: 50% reduction in VAT and corporate tax evasion could bring more than COP 15 trillion (USD 8 billion) in additional revenues.

Mexico SAT – 34% increase in VAT collections (~5 Billion USD) in 1H 2014 due to CFDI and automated reporting

VAT Tax Evasion range from 25 to 50% of total potential

http://www.oecd.org/newsroom/colombia-needs-a-comprehensive-tax-reform-to-boost-investment-and-diversify-the-economy.htm

http://www.bnamericas.com/news/technology/mexican-tax-authoritys-e-invoicing-system-bearing-fruit


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Latin America E-Invoicing & ReportingWhat is VAT?

Minus

Tax You Charge Your Customers

Tax You Pay Your Suppliers

Tax You OweTo Government


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Tax Authorities Control an End To End ProcessGovernment standardized XML linked to VAT Tax reporting = Real Time Audits

Supplier Registers XML

Government XML Standard Only Legal document Registers VAT Tax Obligation

PDF Accompanies Truck

Copy of Invoice OR Signed Shipping Document

depending on country

VAT Tax Linked to XML

Buyer only able to take VAT tax credits that are linked to approval codes in supplier XML

Errors or corrections are the buyer’s issue to get fixed


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Rules are Constantly Changing & AcceleratingFrom 3 to 10 Countries in less than 2 Years, More Business Processes Affected

2013 2014 2015-2016

AR eInvoicing

AR eInvoicing

AR eInvoicingAP eInvoicingFreight InvoicesSPED ECD

AR eInvoicingAP eInvoicingNominaeContabilidad

AR eInvoicingProforma VAT

AR eInvoicingAP eInvoicingFreight InvoicesSPED ECDSPED ECFeSocial

AR eInvoicingAP eInvoicingLibros Reports


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The ProblemConstant Change meets Process Driven, Centralized SAP Maintenance

The Latin America Effect

Day to Day Support Once local IT issues are now corporate IT issues

Change Management Each country can change 2-3x per year

“One of the major problems with single instance is the inability to adapt the

applications to ever evolving business requirements and advances in

technologies in real time so that true business value is consistently delivered to

the local teams” - Gartner Group


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The CostResources Focused on Maintaining, Not Innovating

Ongoing Costs Overlooked Annual cost for each local providers (annual fees, maintenance, hardware)

Cost for Day To Day Support Someone has to monitor and manage the middleware issues

Someone has to monitor and manage the SAP system – an invoice isn’t done until it is posted or acknowledged in the ERP system

ABAP developer Changes based on the law a few times per year, per country

Changes based on customer requests Could affect SAP master data, middleware, PDF output or distribution rules

Controllers at end of month As data is different in multiple systems or silos, constantly checking numbers to avoid fines

Annual Cost of Change Management Staffing - Look at a percentage of the functional analysts, middleware architect, project manager

and SME (subject matter experts), System Integrator for a time period each year

Unintended Costs Operations Shut Down, Collection Issues, Tax Audits, FCPA Issues


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The CauseEnd to End Process Supported in Silos

SAP

ERP

Middleware

Integrate the

System

Different

Solutions for

Each Country

CUSTOMER

IDOC1

2 3

4

5

Monitor #1 Monitor #2 Monitor #3-6

Who

Supports

Who

Supports

Who

Supports

Short-Term Issues

• Multiple Solutions

• Internal Staffing Requirements

• SAP Functional Experts

• Middleware – SAP PI

• ABAP Development

Long-Term Issues

• Monitor & Support• Who do you call when there is an

issue?

• Level 1, 2, and Level 3 Issues

• Change management• Legislation updates?

• Translating into technical requirements?

• Who tests?

• What internal staff is needed?

6


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The Business ImpactIT, Operations, and Finance Affected Constantly

Cash, Compliance & CostEfficiency & Stability

CFO

ObjectivesHow do I automate processes with

my customers and suppliers?

How do I streamline transparency of

reporting & cash flow?

Efficiency On-time delivery

Lower Inbound Receiving costs

Accurate tax reporting & IVA Credits

Complete audit trails

Cost Employee productivity

Cost and time of shutdowns

Tax penalties, missed deductions

Cost of closing books monthly

Flexibility Data standard support

Complete audit trails

Working capital optimization

SAP as single system of record

IT Consolidation

Chief Information Officer

How do I provide value with fewer

systems and lower costs of upgrades?

Effort build, integrate, and maintainSAP & multiple country solutions

Staff, Solutions, Infrastructure

Annual upgrades & consulting

Stable budgeting vs. fire drill projects

Buffer SAP from change

VP Supply Chain


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Why Leading Organizations Choose Invoiceware International

Regional Latin America Platform• One Platform, multiple countries – Brazil, Mexico,

Argentina, Chile, Ecuador, Uruguay, Peru & Colombia

SAP Hybrid Cloud Deployment• Eliminate SAP ERP Configuration & Support issues

• Single SAP Monitor for End Users

• Fixed, Predictable Cost Today & Through Changes

Production Support• Invoiceware a phone call away for day to day calls

• English, Spanish or Portuguese

• End to End Support – including SAP issues

Change Management• Ongoing Changes Included (including both software &

consulting)• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)

• Remove dependency on Internal Resources & SAP to keep system updated


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Invoiceware Solution CoverageDigitizing the Economy through Real-Time Compliance Government Mandates

Solutions• Brazil

• Nota Fiscal• SPED• eSocial

• Mexico• CFDI & Nomina Electronica• eAccounting

• Chile• DTE & Libros Reporting

• Argentina• eFactura multi-invoice types

• Ecuador• CE multiple invoice types

• Uruguay • CFE & Daiy reports

• Peru• CPE & Libros

• Additional countries in 2016• Colombia

• Inbound MIRO/MIGO automation• SAP Localization & Configuration


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SAP ERP

• Single Monitor within SAP ERP

• Absorbs unique customizations & configurations of customer

• Flexibility for SAP Upgrade Teams

• Includes Change Management at a Fixed & Predictable Cost

Invoiceware International – SAP Hybrid CloudA Different Approach Versus On-Premise or 100% Cloud

InvoicewareLatin AmericaCompliance App

• Multi-Country Support

• Economies of Scale of government interfaces

• Single Source of Support End-to-End



The NeedInvoiceware Value

LATAM Capability

Change Management

Enterprise Support

Eliminate SAP Work

Multiple Countries, One Platform

Reduce dependency on internal resources: SAP, Middleware, AR, AP, Shipping, Receiving, & Controllers

Avoid Company & Customer specific development

Savings – avoid country specific ABAP development & deployment

Simple Architecture One Monitor, Reusable components across countries

Less Hardware & Architecture Costs

One Support Team for YOUR implementation

Solve Issues in Minutes, Not Days

Keep Up with the Legislation

All Updates Included (Software & Services) for all

components at a Fixed Cost



Next Steps Contact Us To Learn More

+ 1800 – 988 – 0728www.invoicewareint.com

http://www.invoicewareint.com/

overview of latin america electronic invoicing and tax reporting requirements

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