In a recently published resolution, the Paraguayan tax authority (Dirección Nacional de Ingresos Tributarios - DNIT) postponed the deadline for mandatory e-invoicing adoption for newly registered taxpayers in the country, originally planned to start on January 1, 2024.

Timeline

The resolution establishes that starting January 1, 2025, legal entities registered as new taxpayers in Paraguay will only be able to issue tax invoices electronically (except for withholding invoices) using the E-Kuatia´i System (free e-invoicing platform provided by the tax authority, which is still under development) or the E-Kuatia System (e-invoicing system for medium and large companies who choose to carry out development on their own or acquire the services of a third-party software provider).

Impact

Paraguay is currently rolling out mandatory e-invoicing to several groups of existing taxpayers who must issue invoices electronically via the E-Kuatia System or the E-Kuatia´i System, targeting completion in October 2024.

Although newly registered taxpayers are no longer urged to comply from 2024, companies planning to expand their business to Paraguay in the upcoming year must ensure readiness to comply with the country’s e-invoicing mandate from 2025.