By: Garland M. Baker B.
Exclusive to A.M. Costa Rica
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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.
Hacienda, the finance ministry, and Tributacíon Directa, the tax department, has spent much money promoting the system as easy to use. It is not. They also say people will love it. They do not.
Let the facts speak for themselves. Only 9 percent of big tax contributors and 28 percent of professionals are using electronic invoicing at this time, eight months into the program. Most people hate it. The tax department is surprised and is sending out thousands of emails reminding people the tax penalties for not getting with the program. Penalties range up to 43.1 million colons (around $76,000). The numbers are correct. They are not typos.
