Law 32-23 includes penalties for taxpayers who do not implement this mechanism within the established periods or who delay sending their tax receipts to the DGII
SANTO DOMINGO. – Companies and taxpayers who do not comply with the deadlines set for joining the electronic invoicing system in the Dominican Republic are subject to tax penalties, in accordance with the provisions of Law No. 32-23, which regulates the mandatory use of this modality and defines the responsibilities of those who carry out commercial operations in the national territory.
The legislation includes penalties for failure to adopt this tool, as well as for the irregular issuance and late submission of electronic tax receipts (e-CF) to the General Directorate of Internal Taxes (DGII).
In this regard, Article 26, paragraph 1, of the regulations identifies the failure to use digital invoices as a tax offense, except for the exceptions provided for in the legal framework itself. Meanwhile, paragraph 16 includes among the violations the failure to submit these documents to the tax administration in a timely manner.
These provisions are especially relevant for businesses that have not yet completed their integration into the new scheme, because the obligation follows a different schedule depending on the classification of each obligated entity.
Fines for non-compliance with regulations
Regarding penalties, Article 27 of Law 32-23 provides that the infractions contemplated in numerals 1 to 15 of Article 26 will be punished in accordance with Article 257 of Law No. 11-92, which establishes the Dominican Tax Code and its amendments.
The irregularities include the issuance of electronic invoices without authorization from the DGII, the use of documents that do not meet the required technical requirements, and the failure to keep the records established by current regulations.
Similarly, Article 28 states that the late delivery of electronic tax receipts will be subject to the corrective measures provided for in numeral 3 of Article 205 of the Tax Code.
However, Law 32-23 does not directly specify the amounts in pesos that those responsible for these offenses must pay, but refers to the sanctioning provisions of the aforementioned legal instrument.
Therefore, the applicable fines will depend on the nature of the violation committed and the corresponding legal provisions.
Deadlines set for adopting the system
Furthermore, Article 37 establishes a mandatory incorporation schedule divided into three categories, taking into consideration the tax classification of the taxpayers.
According to this provision, large national taxpayers had a period of 12 months from the entry into force of the legislation, while large local and medium-sized taxpayers had 24 months to complete the transition.
However, for small, micro and unclassified businesses, the legal text granted a maximum of 36 months to adopt this method of issuing invoices.
Likewise, paragraph II of this section contemplates the possibility that interested parties may agree with the DGII on an extension to comply with the implementation, provided that there is approval from the tax collection authority.
In this way, the regulation allows for requesting additional time to complete the technological adaptation, although its granting is not automatic and is subject to the evaluation of the oversight body.
Prison and business closure for fraudulent billing
In addition to administrative fines, the legislation establishes more severe criminal consequences for those who use electronic receipts for fraudulent purposes.
In this regard, Article 30 states that individuals or legal entities that issue or use fraudulent invoices with the intention of defrauding the tax authorities may face sentences of one to five years in prison.
It also contemplates economic sanctions equivalent to double and up to four times the amount of the document issued or used illicitly, as well as the definitive closure of the commercial establishment or company.
However, these penalties specifically correspond to tax fraud conduct and should not be confused with administrative measures resulting from delays in joining the system.
Technological failures do not exempt one from paying taxes
Furthermore, the regulations also specify that technical difficulties related to the operation of the electronic invoicing platform do not release taxpayers from their tax obligations.
On this point, paragraph II of Article 21 expressly states:
"Under no circumstances will the contingency be an impediment to complying with the filing and payment of tax obligations.".
Consequently, technological disruptions or connectivity problems that affect the generation of digital documents do not in themselves suspend the duty to declare and pay the corresponding taxes.
Taxpayer responsibilities
It is worth noting that Law 32-23, enacted in May 2023, constitutes the legal framework for the mandatory implementation of electronic invoicing in the country, with the aim of strengthening tax supervision mechanisms and modernizing collection procedures.
Through this tool, the tax administration seeks to improve the monitoring of commercial transactions, expedite the validation of records, and have information that facilitates compliance with tax obligations.
Finally, the application of this regulation implies new responsibilities for economic agents, who must guarantee the issuance, verification, preservation and timely transmission of their electronic tax receipts, in order to avoid the penalties contemplated in the legislation.
Recommended readings:
- DGII reminds that it will require exclusive electronic invoicing for large local taxpayers starting in November
- Electronic invoicing in the Dominican Republic: a guide to complying with the DGII before November 15th
- DGII eliminates ITBIS withholding on payments to companies that invoice electronically
