In what has been a busy fiscal trajectory in 2022 for multiple Latin American countries, El Salvador has become the latest country to mandate e-invoicing.    

The Parliament in El Salvador, the Asamblea Legislativa, approved Decree 487/2002 (yet to be published) which effectively mandates e-invoicing in the country.      

As with other countries, the underlying motivation for mandating e-invoicing include reducing tax evasion and enhancing communication between taxpayers and the tax authorities. The Parliament also suggested that they were strongly influenced by the e-invoicing regimes of neighbouring countries, demonstrating the influential and prominent function of e-invoicing in Latin America as a whole.    

We can expect further details around El Salvador’s proposed e-invoicing model once the Decree is published in the Gazette. In the meantime, the Ministry of Finance will work on plans for the implementation of the e-invoicing mandate once the Decree has been published.