According to the <a href="https://www.asamblea.gob.sv/sites/default/files/documents/decretos/CC6E4183-4D6F-4BC8-9A88-C0BC2BFAF13E.pdf" target="_blank" rel="noopener">Legislative Decree No. 94 of 2024</a>, the fields in the &ldquo;Recipient&rdquo; section are considered optional unless:
<ul>
<li>The transaction amount is USD 25 000 (ca. EUR 22 900) or more;</li>
<li>The customer requires the invoice to document the transaction (regardless of transaction value);</li>
<li>When the invoice should prove deductible expenses or costs for the fiscal year.</li>
</ul>
&nbsp;
For the above transactions, it is mandatory to include the recipient&rsquo;s name, denomination, business name or company name and identification number. The identification number can be a Tax ID number, passport or residence card number, Unique Identity Document number, tax registration number in the country where the customer is liable for tax or the number of another document that identifies them.
&nbsp;
Furthermore, when a customer is a legal entity, denomination or company name must be included, regardless of transaction amount.
&nbsp;
Penalty introduced for non-compliance
In the previously mentioned cases, where an identification number or identification name is required, and the supplier does not provide that information, a fine equal to 30% of the transaction amount of each document is imposed or, as a minimum, two monthly salaries in the commerce sector.
&nbsp;
Timeline
The reform came into force on 27 September 2024.

On 19 September 2024, the Legislative Assembly of El Salvador published Legislative Decree No. 94 of 2024. The decree poses new obligations to which recipient data is considered mandatory or optional in the invoicing document.

The Legislative Assembly imposes new obligations to mandatory and optional invoice recipient data

Starting 1 January 2025, it will be mandatory for businesses obliged to issue electronic documents to start issuing only e-tickets to final consumers.
&nbsp;
More information can be found under the following <a href="https://factura.gob.sv/download/6-normativa-de-cumplimiento-de-los-documentos-tributarios-electronicos-contiene-los-lineamientos-generales-para-la-implementacion-de-facturacion-electronica/?wpdmdl=4728&amp;refresh=66608aff5c7b11717603071" target="_blank" rel="noopener">link</a>, point 15, pages 22-23 (in Spanish).

The tax authority of El Salvador (DGII) has updated the &ldquo;Compliance regulations for electronic tax documents&rdquo; (Sp.: &ldquo;Normativa de cumplimiento de los documentos tributarios electr&oacute;nicos&rdquo;).
&nbsp;

El Salvador will make B2C e-tickets mandatory

On 17 March 2023, <a href="https://www.mh.gob.sv/" target="_blank" rel="noopener">The Ministry of Finance (MH)</a> of El Salvador made adjustments to the Json schemes of various electronic fiscal documents (Documentos tributarios electr&oacute;nicos or DTEs) related to the electronic invoicing regime.
&nbsp;
What documents are affected by this change?
This update modified different nodes of the JSON schemas of eight DTE types. Below, we mention the main changes by document type:&nbsp;
&nbsp;
- Electronic invoice (Factura electr&oacute;nica or FE): codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, numberDocument, payments, balanceFavor, numPagoElectronico, taxes, observations, license plate.
&nbsp;
- Electronic Receipt Tax Credit (Comprobante Cr&eacute;dito Fiscal Electr&oacute;nica or CCFE):&nbsp; document number; taxes; balanceFavor, and numPagoElectr&oacute;nico.
&nbsp;
- Electronic Remittance Note (Nota de Remisi&oacute;n Electr&oacute;nica or NRE): codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, taxes.
&nbsp;
- Electronic Credit Note (Nota de Cr&eacute;dito electr&oacute;nica or NCE): amountDescu, taxes, withholding, and numPagoElectronico.
&nbsp;
- Electronic VAT Withholding Receipt (Comprobante de Retenci&oacute;n IVA Electr&oacute;nico or CRE):&nbsp; business name, MH code, code, point of sale MH, point of sale [of the issuer], business name, address, telephone, e-mail, description [of the receiver], etc.
&nbsp;
- Receipt of Electronic Settlement (Comprobante de Liquidaci&oacute;n Electr&oacute;nico or CLE):&nbsp; codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, nombreComercial, telephone, articles, taxes, etc.
&nbsp;
- Electronic Settlement Accounting Document (Documento Contable de Liquidaci&oacute;n Electr&oacute;nico or DCLE): vat, ivaPercibido, ivaComision, percentComision, codEmpleado.
&nbsp;
- Electronic Export Invoice (Factura de Exportaci&oacute;n Electr&oacute;nica or FEXE): typeContingency, reasonContingency, codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, name, nombreComercial, descActividad, telephone, discount, numPagoElectronico.
&nbsp;
 Who do these changes affect?
It affects taxpayers who have voluntarily adopted the e-invoicing regime, given that, to date, no groups of taxpayers are required to implement DTE. Notwithstanding the preceding, the Ministry of Finance has provided a "search engine" with which taxpayers may consult whether they are in the scope and look up the timelines for issuing Electronic Tax Documents. This query can be performed with the Tax Identification Number (NIT) with the Unique Identity Document (DUI).
&nbsp;

Businesses that have voluntarily adopted the electronic invoicing regime will now be affected by modifying the JSON format.

The Ministry of Finance adjusted the e-invoicing regime in El Salvador

As previously explained by Pagero, <a href="https://www.asamblea.gob.sv/sites/default/files/documents/decretos/614E2D15-1E04-438F-B982-D1ADD4BD26CF.pdf" target="_blank" rel="noopener">Decree 487</a> defines electronic documents as Electronic Tax Documents (Sp.: Documento Tributario Electr&oacute;nico).
<h4>Tax Authority will decide on the outline</h4>
Furthermore, the decree states that the Tax Authority (Sp.: Ministerio de Hacienda) will have the administrative power to establish, among others, listed in article 1:
<ul>
<li>Technological instructions and specifications for the generation and delivery of Electronic Tax Documents;</li>
<li>Data structure and format of the Electronic Tax Documents (which will be in a local JSON format);</li>
<li>Form, terms, and conditions for the fulfillment of the transmission of Electronic Tax Documents;</li>
<li>Timelines for taxpayers to start issuing Electronic Tax Documents.</li>
</ul>
&nbsp;
In the meantime, taxpayers can begin to issue e-documents voluntarily.
<h4>What are the next steps?</h4>
The Minister of Finance is expected to release a mandate calendar with specific dates for starting issuing electronic tax documents. At the same time, more information regarding technical aspects and processes is going to be released.

On 20 September 2022, the Republic of El Salvador published amendments to the tax code, Decree 487, in the official gazette Diario Oficial.

El Salvador is going to impose mandatory e-invoicing

The Legislative assembly <a href="https://www.asamblea.gob.sv/node/12375" target="_blank" rel="noopener">approved the Decree</a> amending the Tax Code to implement e-invoicing - an initiative proposed by the Minister of Finance.
<h4>Introducing electronic fiscal documents (DTEs)</h4>
The new <a href="https://en.calameo.com/read/006480627738e85919b30?page=3" target="_blank" rel="noopener">amendments to the Tax Code</a> introduced definitions such as electronic fiscal documents (Sp.: Documentos Tributarios Electronicos or DTE). These are the documents generated, signed and transmitted electronically to the Tax Administration and possessing a receipt stamp.
&nbsp;
The TA puts the receipt stamp once an electronic document has been sent to the mandatory infrastructure. The stamp does not indicate document clearance by the Tax Authority but confirms the transmission of the e-document to the local authority and becoming qualified as a DTE.
<h4>Which documents can be DTEs?</h4>
The DTEs introduced are, among others:
<ul>
<li>Electronic Tax Credit Invoice &ndash; Sp. Comprobante de Cr&eacute;dito Fiscal Electr&oacute;nico</li>
<li>Electronic Invoice &ndash; Sp. Factura Electronica</li>
<li>Electronic Export Invoice &ndash; Sp. Factura de Exportaci&oacute;n Electronica</li>
<li>Electronic Debit and Credit Notes &ndash; Sp. Notas de D&eacute;bito y Cr&eacute;dito Electr&oacute;nicas</li>
<li>Electronic Remission Note &ndash; Sp. Nota de Remisi&oacute;n Electr&oacute;nica</li>
<li>Electronic Donation Receipt &ndash; Sp. Comprobante de Donaci&oacute;n Electr&oacute;nico</li>
</ul>
&nbsp;
Furthermore, the Tax Authority plans to offer a free e-invoicing system for taxpayers who cannot buy or develop a proper solution.
&nbsp;
The timelines and technical details are yet to be announced and published by the government. Stay tuned with Pagero to keep up with all the ongoing developments in El Salvador.

The government of El Salvador has taken one more step towards imposing a countrywide electronic invoicing obligation to reduce tax evasion.

El Salvador is one step closer to e-invoicing implementation

The Continuous Transaction Controls (CTC) model is expected to be very similar to the one in Chile, with a particular difference in the format file. Taxpayers will need to send the e-invoice in a JSON format with the electronic certificate to the Tax Authority (DGII) for invoice clearance. Once the invoice is approved, the taxpayer sends the invoice in a non-regulated format to its customer.
&nbsp;
Furthermore, there needs to be an agreement on the invoice format between the supplier and the buyer, and common practice is to send a PDF via e-mail. After receiving the invoice from the supplier, the buyer has the option to validate it with the Tax Authority.
&nbsp;
The date when it will become mandatory to issue e-invoices in El Salvador has not been stated yet. However, as soon as the e-invoicing regime is available, taxpayers will have the option to adhere to the system under certain requirements.
&nbsp;
Pagero is already working to offer a fully digitalised solution for our customers to issue or receive electronic documents in the country. We are closely monitoring the developments in El Salvador to provide you with the latest information.

To reduce its tax gap, El Salvador has looked into other Latin American countries' e-invoicing regimes. The country&rsquo;s electronic invoicing model is still under construction, with no regulations being set yet.

El Salvador is taking first steps towards e-invoicing

Initially, 50 major companies from different industry sectors joined the pilot phase, and it is expected that by the end of 2021 medium and small-size companies are able to adopt e-invoicing too.
&nbsp;
El Salvador has investigated e-invoicing models from other Latin American countries. Costa Rica, Brazil and Mexico have been taken as a reference due to their vast experience in e-invoicing.
&nbsp;

DGII, the Tax Authority of El Salvador (Span.: Direcci&oacute;n General de Impuestos Internos), intending to reduce the tax gap, has in 2020 launched a pilot phase for the new electronic invoice model in 2020.

State of the art of the e-invoicing model in El Salvador

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Regulatory updates - El Salvador

E-Invoicing/CTC Model:
Pre-clearance
Mandatory Infrastructure:
MH (Sp. "Ministerio de Hacienda")'
Mandatory Format:
Local JSON
Mandatory for Issuing:
Group 1 started in July 2023 Group 2 started in October 2023
MH is mandating taxpayers through internal communications
Mandatory for Receiving:
Group 1 started in July 2023 Group 2 started in October 2023
MH is mandating taxpayers through internal communications
eSignature:
Mandatory
Archiving Period:
10 years
Archiving Abroad:
Allowed under conditions

El Salvador

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