If you are doing business in Paraguay, or plan to enter the market, it is crucial to adhere to all legal and regulatory norms in your business activities. That includes complying with proper invoicing requirements for a foreign company in Paraguay, so that your company enjoys good standing in the eyes of local authorities and commercial partners.
Invoices in Paraguay provide a detailed record of sales and are an indispensable resource for accountancy matters. Invoices also represent a type of legal protection to both parties involved in a purchase, as it demonstrates a client’s obligation to pay for a service or product and its right not to pay in the event it does not receive it.
Paraguay had the fastest growing economy in South America in 2019, and its government has committed to diversifying its economy and attracting foreign direct investment, making it an attractive propostion for investors.
Whether you are considering company formation in Paraguay or have already established a business in the South American country, knowing about invoicing requirements for a foreign company in Paraguay will help you to comply with local tax regulations and improve the efficiency of your commercial operations.
Invoicing requirements for a foreign company in Paraguay: what information to include?
An invoice issued by a company established in Paraguay must provide all of the relevant information to describe a commercial transaction between a seller and a buyer. To support national and international businesses, the country’s billing system is in the process of modernization with the aim of migrating to the Integrated National Electronic Billing System.
According to the local legislation that establishes the invoicing requirements for a foreign company in Paraguay, an invoice must include the following information:
- Stamp Number
- Stamp validity date
- Unique Taxpayer Registry (RUC)
- Name or company name of the issuer
- Address of the parent company and the issuing establishment
- Economic activity of the issuer
- Issuing date
- Expiration date
- Unit price
- Value Added Tax (VAT)
- Total sale value
Invoices in Paraguay must also include a description of the goods or services provided and can be offered in paper or electronic form. Note that invoices that do not have the required data will not be valid before Paraguayan authorities and can incur penalties for improper record keeping.
Stamping system for invoices in Paraguay
Invoicing requirements for a foreign company in Paraguay are the same as for a local company in the sense that all businesses operating in the country must request a stamp from local tax authorities with an eight-digit code that must be included in every invoice.
Note that the Undersecretariat of State for Taxation will grant authorization for the printing of invoices only to taxpayers who are up to date on their tax obligations. This might include updating the company’s data in the Single Taxpayers Registry, presenting the correspondent affidavits and paying the required taxes.
Get expert support from Biz Latin Hub for your business in Paraguay
At Biz Latin Hub, we offer a full portfolio of customized back-office services, including accounting and tax advisory services. Our team of multilingual specialists is equipped to help you meet invoicing requirements for a foreign company in Paraguay and ensure the good health of your business. Reach out to us now for more information on how we can help you ensure the growth and success of your business operation in Paraguay.
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