Electronic invoicing in Paraguay is possibly one of the most consulted topics in recent months.
For many Paraguayan companies, implementing this invoicing modality represents a challenge. However, we cannot lose sight of its purpose:
Since January 2024, Paraguay’s Undersecretariat of State for Taxation (SET), now DNIT, announced that the implementation of electronic invoicing would be mandatory for certain categories of taxpayers.
The objective of this important change responds to the global trend of digitalizing tax and administrative processes to ensure efficiency and transparency in tax matters.
Now, implementing electronic invoicing does not have to be a tedious process full of problems.
With the right solution, you can integrate this function into your ERP software without complications. Below, we explain how to do it.
What Is Electronic Invoicing?
As its name indicates, it is a system that allows invoices to be issued, received, stored, and managed completely digitally.
In this sense, companies, instead of issuing paper invoices, generate electronic documents that comply with current legislation.
In Paraguay, this process is managed through the National Integrated Electronic Invoicing System (SIFEN), which validates each issued invoice and ensures its legality before tax authorities.
The DNIT website defines electronic invoicing as: an electronic document that has legal validity for all purposes (tax-commercial and financial).
But…
Is Electronic Invoicing Mandatory in Paraguay?
The short answer is: yes.
Since January 2024, electronic invoicing has become mandatory in Paraguay for certain groups of taxpayers.
There is no turning back from this, and the largest companies had already implemented electronic invoicing several years ago.
Let’s remember that:
- In 2017, Paraguay began working on this under the direction of the DNIT.
- In 2019, it was announced that companies could voluntarily implement this new invoicing model.
- In 2022, mandatory adoption was announced for certain groups of taxpayers, so that adherence to the new system would be gradual.
- Finally, by the end of 2024, 100% of companies are expected to have electronic invoicing.
On the other hand, not implementing electronic invoicing has serious consequences, such as:
- Risk of tax audits.
- Delays in invoice collection.
- Regulatory compliance issues.
- Loss of business opportunities.
- Increase in administrative costs.
The big question is…
What Should You Do if Your ERP System Does Not Include Electronic Invoicing?
The first thing you should know is that, although you need to act immediately to comply with what DNIT requires, your decisions should not be rushed.
Choosing a provider that offers electronic invoicing for your software must be an informed decision.
We are not talking about a minor issue; this concerns your company’s taxes. That is why you must clearly understand what it means to hire a company that provides these services and under what model they offer this solution.
The two best-known options are:
- Connect your ERP system to a “bridge server” that, in turn, is connected to taxation.
- Connect your ERP system directly to taxation, without any bridge server in between.
The first option is the one usually offered by foreign companies and, although it may work in your company, it involves major risks and increases the chances of error:
- Confidentiality is compromised because your data and your clients’ data will be shared with another server.
- You run the risk of that bridge server going down or being hacked, which would leave you unable to invoice.
- One more step is added to the process because the information must pass through a third party before reaching taxation.
- You depend on a company you do not know and that most likely does not offer immediate local support.
The second option, which we recommend to Paraguayan business owners, is to connect your ERP system directly with the tax authority.
You can do this by contacting the company that developed your company’s software or by contacting a Paraguayan provider specialized in electronic invoicing integration, such as Inventiva.
Why?
Because a local provider understands Paraguay’s tax regulations very well and also offers significant advantages in terms of support, customization, and adaptability.
Advantages of Choosing the Right Provider to Implement Electronic Invoicing in Your Business
Choosing the right provider to implement electronic invoicing in your ERP system provides the following benefits:
- Confidentiality and security
A reliable local provider will guarantee that all your company’s data is handled with strict security measures.
And, if you choose a local provider that connects your ERP system directly with SET (now DNIT), you will not have to worry about security, since your data will not be shared or stored on other servers.
- Fast implementation
If the company is the same one that developed your ERP system, the electronic invoicing integration will be carried out efficiently.
The same applies if you hire another Paraguayan company specialized or experienced in this subject.
- Local experience and knowledge
A provider that develops software and technological solutions for the Paraguayan market will better understand your needs and the particularities of local regulations. This is a huge advantage for any company operating in Paraguay.
- Ease of operation
A well-executed implementation will make the transition smooth, allowing you to maintain business continuity without interruptions.
And who can deliver these results? An experienced provider.
- Flexibility for future needs
We all know the current tax requirements, but if regulations change or new requirements arise in the future, a local provider will be better positioned to make the necessary adaptations quickly.
Why Trust Inventiva for This and Other Implementations?
At Inventiva, we are a Paraguayan company with more than 25 years of experience integrating technological solutions for the local market.
As a team, we deeply understand our clients’ specific needs and stay up to date with all regulatory changes that affect companies in Paraguay.
By choosing Inventiva to implement electronic invoicing in your ERP system, you are making a smart decision that offers:
- Proven experience
We have a solid track record of successful projects implementing software solutions for Paraguayan companies.
In addition, we were the first software company selected to participate in the country’s electronic invoicing pilot process, and we supported this important change for five years, working together with other Paraguayan companies.
- Quality local support
We have technicians, developers, and systems engineers available to help whenever you need it, in your language and during your working hours.
- Guaranteed compliance
Both the electronic invoicing integration and our Paraguayan software for business management and cooperative management are aligned with current local standards and regulations.
With us, you have the peace of mind and guarantee that your company operates within the legal framework.
- Continuous innovation
With Inventiva, your systems remain updated with the latest trends and technological requirements.
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If your business needs to implement electronic invoicing in its ERP, do not hesitate to contact us.
We are ready to help your company comply with regulations effectively and securely, ensuring that your business continues operating competitively in the Paraguayan market.
If you want to inquire about or quote this service, click the button below and a consultant will contact you.
