Costa Rica along with other Central and South American countries now requires the use of electronic invoices. These are called facturas electronicas in Spanish, the buzzword everyone is talking about. The government wants everyone to use them by the end of the year. There are a few exceptions but not many.
Health professionals, accountants, and lawyers were the first required to use the new system starting in January, February, and March. These groups are the most significant tax cheaters, according to tax department studies. Each month that goes by includes another business type.
The concept behind electronic invoicing comes from e-billing used by corporations and trading partners for many years throughout the world. The term describes any method by which invoices are presented electronically to customers for payment. Countries like Costa Rica have elected to bastardize the concept to collect more taxes. [Read more…]