Compliance mandates are spreading quickly throughout Latin America with a single goal from the governments’ perspective: increasing revenues. These increased returns come from minimizing false, unverified tax deductions, and increasing fines for tax reporting errors.
Penalties for invalid invoices range from $250 to $3,000 USD each, and those for erroneous deductions and tax reporting errors can cost 75 to 150 percent of the tax value, which can quickly adding up into the millions.
Companies at the highest risk for audits and fines are those who use multiple systems for compliance – separate solutions for each country, or separate systems for e-invoices, accounts payable, accounts receivable, and tax reporting. So many disparate systems increase the risk of data errors, discrepancies and manipulation.
The following video summarizes the challenges multinational companies face when trying to adapt to the ever changing electronic invoicing and fiscal reporting mandates across Latin America.
Global companies leveraging Invoiceware International’s regional solution, however, ensure that all data is in one place – their existing ERP – eliminating the risk of audits and fines.
“Utilizing an OnDemand Latin America E-Invoicing Network allows our internal staff to focus on strategic business activities rather than constantly researching and implementing continual changes in each country.”
Randy Isdahl, Director SAP Process Architecture, Brown Forman Corporation