Regulatory updates - Dominican Republic

State institutions and their dependencies shall start issuing electronic invoices no later than:

• 15 May 2024 – Large companies;
• 15 May 2026 – All remaining state institutions and their dependencies.

The state companies classified as large and required to implement e-invoicing are already referenced in the following list released by DGII.

More details about the informational release from DGII are available in the following document (in Spanish).

NEW TIMELINES

According to Article 37 of Law 32-23, known from now on as electronic invoicing law, taxpayers will be mandated to issue electronic tax documents (Sp. “Comprobantes Fiscales Electronicos – e-CF”) according to the following timeline:

• Large National Taxpayers: 12 months maximum to implement e-CF starting from the promulgation date of e-invoicing law (16 May 2023)
• Big and medium locals: 24 months maximum to implement e-CF from the promulgation date
• Small, micro, and not classified: 36 months maximum to implement e-CF from the promulgation date

DGII issued a notice for when Large National Taxpayers will have to comply with the following deadlines and phased rollout dates:

• Group 1: until 15 January 2024 to have implemented e-CF
• Group 2: until 15 March 2024 to have implemented e-CF
• Group 3: until 15 May 2024 to have implemented e-CF

MANDATORY INVOICE RESPONSE     

According to Article 20, paragraph three of the e-invoicing law, it will be mandatory for the recipient to issue an invoice response of Acceptance or Rejection that will be sent both to DGII and the electronic issuer. However, this will not be the only invoice response the recipient of an invoice is mandated to issue, but also an acknowledgment of receipt, according to the same article but paragraph one.

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.