E-invoicing in the Dominican Republic
Summary
The Dominican Republic uses the e-CF standard established by the DGII.
Since May 2023, the Dominican Republic has been gradually mandating electronic invoicing through a phased rollout: starting with large national corporations, moving to medium-sized businesses, and ending with small enterprises.
The DGII offers a free online tool that enables SMEs and freelancers to issue compliant e-invoices without needing their own private billing software.
In the Dominican Republic, e-invoicing drives business modernization by cutting costs and automating accounting while ensuring faster DGII tax compliance.
What are the most important characteristics of electronic invoicing in the Dominican Republic?
The Dominican Republic e-invoicing model is based on the implementation of a local XML standard format for generating digital documents called electronic tax receipts (e-CF), established by the Tax Authority – Dirección General de Impuestos Internos (DGII). e-CFs must be digitally signed and sent in real time for validation through a technological platform controlled by this authority, whose vision is to generate efficiency not only in the control of tax collection, but also in the functioning of businesses through the electronic exchange of tax documents between them.
The inspiration for this important project came from having carefully studied the experiences of other countries in the region that have successfully implemented e-invoicing, so DGII decided to emphasize certain characteristics beyond taxes, allowing its models to be highly innovative and successful.
Digital Format of the Documents
The model defined by DGII includes all types of tax documents in the Dominican Republic, not just invoices. The XML format for electronic invoices is very well defined and contains all the information detailing commercial transactions and their participants (supplier and buyer).
Banqup Compliance Platform (Dominican Republic e-CF structure)
At Banqup, we offer a platform that allows the consolidation of all the technical requirements of the different types of electronic documents regulated in each country, making them easier for our clients to understand and helping them simplify the integration with their ERP systems in order to comply with each regulation.
Mandatory implementation
Since the Executive Branch of the Dominican Republic (DR) enacted the electronic invoicing law in May 2023, it has been gradually implemented on a mandatory basis, first for large national companies, then for large and medium-sized local companies, and finally for the smallest businesses, a process that is still underway.
Free solution for small businesses
It is a technological tool that allows the issuance of e-invoices, in accordance with the electronic invoicing operating model established in the Dominican Republic. This tool is provided free of charge by the Internal Revenue Service to taxpayers who wish to issue electronic invoices, operating from their computer with internet access, especially for independent professionals, individuals, and SMEs that do not have any existing system for this purpose.
This type of solution has proven key in the widespread adoption of electronic invoicing in other Latin American countries, as it allows smaller taxpayers to easily adopt the model and begin exchanging digital documents with their clients, even before it becomes mandatory for them. Some of their clients are large companies that immediately begin to benefit from receiving electronic invoices in their supply chains.
Benefits of e-invoicing
Electronic invoicing in the Dominican Republic offers key benefits such as reduced costs (paper, printing, filing), greater efficiency and automation of accounting processes, simplified and faster tax compliance with the DGII, increased security by reducing document loss, and greater transparency for tax administration, modernizing commerce, and attracting investment. In addition, there are tax incentives from the DGII for its implementation, and it contributes to environmental protection.
Conclusion
By implementing a real-time platform that validates e-invoices and promotes transparency, the Dominican Republic not only successfully reduced tax evasion, but also created opportunities for businesses to grow and innovate, following the blueprint created in Latin America since 2003, when the pioneers Chile, Mexico, and Brazil started their projects.
As other regions look to implement similar systems, Latin America’s success serves as a powerful example of how digital transformation can drive both compliance and economic growth, going beyond fulfilling obligations: It acts as a catalyst for business efficiency, innovation, and competitiveness.
As the world continues to move towards digital tax solutions, Banqup offers a variety of powerful tools created to assist businesses as they navigate through these complexities. Banqup aims to simplify compliance with real-time validation, secure document transmission, and integration with tax authorities, ensuring businesses meet regulatory requirements seamlessly. By leveraging Banqup’s solutions, companies can streamline their invoicing processes, reduce the risk of fraud, and unlock opportunities for greater operational efficiency and financial services. Latin America's success demonstrates that effective digital tax systems can be a game-changer, and with Banqup’s support, businesses worldwide can harness the full potential of digital transformation, enhancing both compliance and growth on a global scale.
