Compliance updates - Dominican Republic

The Dominican Republic has been preparing to make a transition from currently voluntary e-invoicing to countrywide obligation.

What are the timelines?

The project outlines the mandate implementation as a gradual rollout with the following timelines:

• Large taxpayers – January to December 2023;
• Big and medium businesses – January to December 2024;
• Small and non-classified taxpayers – January 2025.

What will the CTC model be?

The continuous transaction controls to be implemented in the Dominican Republic are based on a post-clearance model, where taxpayers will need to report toward DGII in a local XML format, the e-CF (Electronic Fiscal Document). In exchange, they will receive a trackID from the tax authority, allowing taxpayers to exchange the e-CF with the buyer.

The trackID will serve as a confirmation of reporting and receiving the e-document by the DGII. This trackID will also allow taxpayers to communicate via the available DGII channels in case the e-CF has been approved or rejected by the mandatory infrastructure.

Moreover, DGII has developed a free invoicing system for SMEs and self-employed persons not possessing a proper e-invoicing solution and with lower transaction volume.

Pagero will support e-invoicing operations in the Dominican Republic and inform its customers about the latest developments in due time.

The Continuous Transaction Controls (CTC) model under consideration is similar to the one in Chile: Dominican taxpayers will have to “clear” an e-invoice with the Tax Authority by submitting it in an XML format with the electronic certificate to the Authority. Whether the invoice has to be approved by the Tax Authority before or shortly after being sent to the customer is not clarified yet. The next step from the supplier’s side would be sending the invoice to the buyer in a non-regulated format.

Prior to the invoice exchange, the trading parties would need to agree on the invoice format. The most common way is to send a PDF by e-mail. Once the buyer receives the invoice from the supplier, they would have the possibility to validate it with the Tax Authority.

As already mentioned, there is no specified date for the e-invoice issuance becoming mandatory. Pagero closely follows the developments in the Dominican Republic and remains ready to help our customers become and stay compliant.