Update: | Compliance Alert – New obligations to mandatory and optional invoice recipient data |
Date: | 2024-10-16 |
The Legislative Assembly of El Salvador published Legislative Decree No. 94 of 2024. According to the decree, 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, e.g., 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, regardless of transaction amount, denomination or company name must be included when a customer is a legal entity.
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.