To clarify on one of my earlier posts concerning Chile E-Invoicing, I wanted to take the time to explain the revenue levels as well as the deadlines that were officially published.
The Chile SII officially published the electronic invoicing mandate a few weeks ago in the Official Gazette, mandatory use of the Electronic Tax Document (DTE). The rollout will take place over 3 years and will be based on revenue tiers.
The first deadline is November 1, 2014 for companies billing more than 100,000 UF. The (UF) – Unidad de Fomento which is defined on Wikipedia as:
“The Unidad de Fomento (UF) is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is now (today) constantly adjusted to inflation so that the value of the Unidad de Fomento remains constant on a daily basis during low inflation.
It was created on January 20, 1968, for the use in determining principal (monetary item) and interest (constant real value non-monetary item) in international secured loans (monetary items) for development, subject to revaluation according to the variations of inflation. Afterwards it was extended to all types of bank loans (monetary items), private or special financing (monetary items), purchases (trade debtors/trade creditors being constant real value non-monetary items) or investments on installments, contracts (constant real value non-monetary items), and some special situations. Also it is used in legal standards such as the par value of stock/capitalization (constant real value non-monetary items) of companies, fines (payables being constant real value non-monetary items), etc.
It has become the preferred and predominant measure for determining the cost of Real Estate (variable items valued at Historical Cost being updated), values of housing (historical variable real value non-monetary items being updated) and any secured loan (monetary item), either private or of the Chilean government. Individual payments are made in Chilean pesos (the country’s legal tender), according to the daily value of the UF.”
Follow on mandates:
- August 1, 2015 for Small Business with operations in urban areas, business with operations in rural area will receive an extension until February 1, 2015. This covers business less than 100,000 UF but greater than 2400 UF.
- The final rollout for what Chile refers to as micro-businesses (revenue less than 2400 UF) will have to transition by February 2016.