Regulatory updates - El Salvador

According to the Legislative Decree No. 94 of 2024, the fields in the “Recipient” section are considered optional unless:

• The transaction amount is USD 25 000 (ca. EUR 22 900) or more;
• The customer requires the invoice to document the transaction (regardless of transaction value);
• When the invoice should prove deductible expenses or costs for the fiscal year.

For the above transactions, it is mandatory to include the recipient’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.

Furthermore, when a customer is a legal entity, denomination or company name must be included, regardless of transaction amount.

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.

Timeline

The reform came into force on 27 September 2024.

Starting 1 January 2025, it will be mandatory for businesses obliged to issue electronic documents to start issuing only e-tickets to final consumers.

More information can be found under the following link, point 15, pages 22-23 (in Spanish).

On 17 March 2023, The Ministry of Finance (MH) of El Salvador made adjustments to the Json schemes of various electronic fiscal documents (Documentos tributarios electrónicos or DTEs) related to the electronic invoicing regime.

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: 

- Electronic invoice (Factura electrónica or FE): codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, numberDocument, payments, balanceFavor, numPagoElectronico, taxes, observations, license plate.

- Electronic Receipt Tax Credit (Comprobante Crédito Fiscal Electrónica or CCFE):  document number; taxes; balanceFavor, and numPagoElectrónico.

- Electronic Remittance Note (Nota de Remisión Electrónica or NRE): codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, taxes.

- Electronic Credit Note (Nota de Crédito electrónica or NCE): amountDescu, taxes, withholding, and numPagoElectronico.

- Electronic VAT Withholding Receipt (Comprobante de Retención IVA Electrónico or CRE):  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.

- Receipt of Electronic Settlement (Comprobante de Liquidación Electrónico or CLE):  codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, nombreComercial, telephone, articles, taxes, etc.

- Electronic Settlement Accounting Document (Documento Contable de Liquidación Electrónico or DCLE): vat, ivaPercibido, ivaComision, percentComision, codEmpleado.

- Electronic Export Invoice (Factura de Exportación Electrónica or FEXE): typeContingency, reasonContingency, codEstableMH, codEstable, codPuntoVentaMH, codPuntoVenta, name, nombreComercial, descActividad, telephone, discount, numPagoElectronico.

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).