Regulatory updates - Dominican Republic

Decree 587-24 publication guides concerned parties in implementing the system from what was previously announced in Law 32-23. Important changes include: 

• New Electronic Tax Receipt (e-CF) status: “Anulado” (Annulled) has been added as a possible status for the e-CF; 

• Extension for new registrants in the National Registry of Taxpayers (RNC): Taxpayers who register in the RNC either after the deadline for their tax group or before and do not have a reasonable time to adhere to the mandate will have 120 days to implement the e-invoicing system; 

• Extension request: Taxpayers who cannot implement e-invoicing within the established period have the possibility of requesting an extension by DGII; the extension can be granted for a maximum of 6 months; 

• Voluntary period: If taxpayers implement e-invoicing before the mandatory date, they may make use of the tax incentives established in articles 39-41 in Law no. 32-23; 

• Requirements for certification: There no longer exists a requirement to be up to date with the tax obligations to be certified as an electronic invoice issuer; 

• Use of the free invoice system: A maximum limit of 150 monthly invoices is imposed (no limit to the invoice value). Additionally, the user must be up to date with their tax obligations and formal duties, cannot be a “Large National Taxpayer”, and must not previously have been authorized to issue e-CF through another system than the Free Invoicing System; 

• Deferred sending of the e-CF: The DGII may authorize taxpayers to send e-CFs through offline devices and send deferred e-CFs for validation to the DGII and receiver. The deferred e-CF can be sent maximally 24 hours from the date of the transfer of goods or the provision of services; 

• Contingency process: Two contingency scenarios are acknowledged: one due to a lack of general connectivity and another when the issuer is not technically capable of issuing the e-CF. Furthermore, how these scenarios should be handled has been defined.  
  
  

The decree was made effective 10 October 2024 through its promulgation and publication.   

Gosocket's certification ensures that its software meets the high standards set by General Norms 01-2020 and 10-2021, confirming its capability to issue and receive electronic fiscal receipts in the Dominican market.

Gosocket pledges to comply with all DGII regulations, reflecting its technical proficiency and commitment to legal compliance and transparency.

This certification enhances security and confidence for taxpayers using Gosocket's services, ensuring efficient and secure tax compliance.

Gosocket continues to lead in digitalizing of fiscal processes, offering innovative solutions to simplify tax management and improve operational efficiency, reinforcing its dedication to high-quality service and business digitalization.

Medium-sized taxpayers (Sp.: “Grandes Locales y Medianos”) must issue and receive e-invoices as of 15 May 2025.

Taxpayers not appearing on the list of big or medium-sized companies will be required to start issuing and receiving e-invoices from 15 May 2026.

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.