E-Invoicing in Paraguay – DNIT SIFEN Requirements and Compliance

E-Invoicing in Paraguay

The Paraguayan Dirección Nacional de Ingresos Tributarios (DNIT), under Decree 872/2023 and further detailed by General Resolution 21/2024, has introduced a national electronic invoicing regime through the Sistema Integrado de Facturación Electrónica Nacional (SIFEN). The system makes electronic tax-document issuance mandatory for selected taxpayers, changing how businesses issue, report, and validate invoices and other tax documents across the country. The mandate requires authorized taxpayers to issue invoices and receipts electronically, using DNIT-registered/accredited systems. 

Any tax document not issued through the approved electronic process is not considered valid under the regulation. E-invoicing aims to improve transparency, reduce fraud, automate record-keeping for businesses and DNIT, and modernize the tax compliance framework in Paraguay. This blog explains the requirements of the system, key deadlines, technical process, benefits, and how providers like Flick Network help companies comply smoothly with the new law.

What Is E-Invoicing in Paraguay

E-invoicing in Paraguay refers to the issuance, validation, transmission, and archiving of electronic invoices and other tax documents through SIFEN, provided that it does not take place on paper or in unstructured digital form. According to the regulations, invoices and any other tax-relevant documents, such as receipts for sales, export invoices, debit/credit notes, simplified tickets, and many others, shall be issued only through DNIT-approved systems, including the so-called e-Kuatia and e-Kuatia’i platforms.

Only those documents issued through these certified systems, in the appropriate format and after electronic validation, are valid for tax and accounting purposes. Documents that are only printed, scanned, or manually prepared, without going through the electronic process, shall not be covered under the law. Once an electronic invoice or any other tax document is approved by SIFEN, it will be stored in DNIT systems, available for audits, compliance, and record-keeping.

Paraguay E-Invoicing Timeline and Important Dates

The rollout of e-invoicing in Paraguay has been phased, giving businesses time to adapt before mandatory full enforcement:

• 1 January 2024: Decree 872/2023 came into effect, regulating the issuance of electronic tax documents via SIFEN.

• 2024: Voluntary adoption continued, with some taxpayers choosing to register as electronic billers using e-Kuatia or e-Kuatia’i.

• 3 March 2025: Under General Resolution 21/2024, the first group of medium and large taxpayers (Group 11, designated by DNIT) became subject to mandatory electronic invoicing.

• 2 June 2025: Second group of taxpayers becomes mandatory.

• 1 September 2025: Third group mandatory.

• 1 December 2025: Fourth group mandatory.

• 2026: Remaining groups phased in quarterly (March, June, September, December) as defined in Resolution 21/2024.

• 1 April 2025: All newly registered legal entities (RUC) must issue their tax documents electronically.

• 2 January 2026: All suppliers to the State (public procurement) are required to issue documents exclusively electronically, except for the Virtual Withholding Receipt.

Who Must Follow Paraguay’s E-Invoicing Rules

Under DNIT’s regulations:

• Medium and large taxpayers of groups designated under General Resolution 21/2024.

• Newly registered companies (from 1 April 2025) -  they must issue invoices electronically through e-Kuatia or e-Kuatia’i.

• Suppliers to the government -  from 2 January 2026, they must issue all tax documents electronically, except for the Virtual Withholding Receipt.

• Businesses that voluntarily register earlier as electronic billers under SIFEN (via e-Kuatia / e-Kuatia’i) during the voluntary adoption phase.

Technical Rules and E-Invoicing Process in Paraguay

• Document Types and Formats: SIFEN covers a variety of tax documents such as electronic invoices, bills of exchange, export invoices, simplified tickets, public-show tickets, credit/debit notes, money receipts, import documents, donation receipts, and more.

• System / Software: Issuers must use DNIT-approved platforms (e-Kuatia or e-Kuatia’i) to generate electronic documents.

• Document Validation: Each electronic document must include a digital signature, a security control code, and comply with the XML schema established by DNIT.

• Submission and Clearance: The electronic document must be sent to SIFEN for validation. Only after SIFEN approves it does the document become a valid Electronic Tax Document (DTE) for tax and accounting use.

• Delivery to Recipient:

  • If the buyer or recipient is an electronic user, the DTE can be sent via web service, email, or a downloadable portal.
  • For non-electronic recipients, a graphic representation (KuDE), which includes a QR code or control code, must be provided either digitally or in print.

• Archiving and Record-Keeping: Issuers must securely store electronic records (DTEs) to ensure traceability and availability for audits.

Benefits of E-Invoicing in Paraguay

• Efficiency: Automates issuance and reporting of invoices and tax documents, reducing manual workload and paperwork.

• Accuracy: Standardised electronic formats and structured documents reduce errors in tax calculation, accounting, and reporting.

• Compliance and Transparency: DNIT obtains near real-time access to transactional data, improving fiscal control, transparency, and reducing opportunities for tax evasion.

• Cost Savings: Reduction in printing, storage, and physical document handling lowers overhead for businesses.

• Traceability and Fraud Prevention: Digital documents with signatures, control codes, and validated by SIFEN make invoice manipulation or forgery more difficult.

• Modernisation and Formalisation: Encourages formalization of transactions, especially for medium and large companies, and stimulates digital transformation of business operations.

Consequences for Failing to Comply with E-Invoicing in Paraguay

• Invalid Tax Documents: Documents not issued via approved electronic systems become invalid for tax, accounting, or legal purposes.

• Inability to Bill or Transact (especially with government): Suppliers required to issue electronic invoices may be unable to transact with the state if they don’t comply.

• Operational Disruption: Businesses without compliant systems may face delays, billing issues, and cash flow problems when trying to issue invoices.

• Audit and Compliance Risk: Lack of traceable, validated documents increases risk of audits, penalties, or disallowance of deductions or credits under Paraguayan tax law.

How to Prepare for E-Invoicing in Paraguay

• Assess Your Systems: Check whether your billing, ERP, POS, or accounting systems are compatible with e-Kuatia / e-Kuatia’i or can be upgraded.

• Register and Certify: If eligible or required, register with DNIT, obtain a digital certificate, and complete authorization (timbrado) via SIFEN or Marangatu to become an electronic biller.

• Integrate and Test: Connect your business systems and run test invoices to ensure data fields, digital signatures, control codes, correct XML format, and submission workflow conform to DNIT requirements.

• Staff Training: Train your accounting, billing, and operations teams on how to issue electronic documents, generate DTEs, deliver KuDE if required, store archives, and handle recipient communication.

• Maintain Digital Archive: Ensure all DTEs and related electronic tax documents are securely archived for future reference and audits.

How Flick Network Helps Businesses with E-Invoicing in Paraguay

While the e-invoicing framework in Paraguay is governed by DNIT and implemented via SIFEN, third-party platforms such as Flick Network can support businesses in their transition to compliant electronic invoicing workflows. For Paraguay’s context, Flick Network can offer:

• Structured document generation: Flick can format invoices and tax documents in the required electronic format (XML or DTE) according to SIFEN’s schema, automating creation.

• Submission and reporting: The platform can help transmit data to DNIT, interface with SIFEN via APIs or proper channels, handle validation, tracking, and archiving, easing the compliance burden.

• Archiving and audit-ready storage: Flick can maintain digital records, submission logs, and make them accessible for audits or compliance reviews as required by DNIT.

• Integration with existing business systems: Flick can connect with ERP, POS, billing, or accounting software, standardizing invoice workflows and enabling scalability, especially for medium and large businesses.

• Continuous compliance support: Flick can monitor updates to Paraguay’s tax regulations, schema changes, ensure invoice formats remain compliant, manage digital signatures or timbrado, and help onboard new issuing points or establishments.

Conclusion

Paraguay’s shift to mandatory electronic invoicing under Decree 872/2023 and General Resolution 21/2024, via the SIFEN system, marks a major milestone in modernizing the country’s tax compliance and business operations. With a phased rollout between 2024 and 2026 that covers new entities, medium and large taxpayers, and eventually suppliers to the State, e-invoicing will become the standard for most businesses. 

By preparing early, registering, integrating software, training staff, and establishing reliable archiving, companies can streamline operations, reduce errors, avoid compliance risks, and enjoy the benefits of a digital, transparent invoicing ecosystem. Third-party solutions like Flick Network can make this transition smoother by managing generation, submission, archiving, and compliance end to end. Early adoption helps avoid operational disruption, legal penalties, and positions your business for efficient, compliant operations in Paraguay’s fully digital invoicing landscape.

FAQs

1. What is DNIT’s SIFEN in Paraguay?
    It is the national platform managed by DNIT where structured electronic tax documents (invoices, receipts, credit/debit notes, export invoices, etc.) must be submitted, validated, and stored via system-to-system transfer, enabling electronic invoicing, sales reporting, and tax compliance.

2. Who must comply with e-invoicing in Paraguay?
    Medium and large taxpayers as per DNIT classifications, newly registered legal entities (from April 2025), suppliers to the State (from January 2026), and any taxpayer group designated by DNIT under the mandate.

3. What happens if a business continues issuing paper-based or non-validated invoices after being mandated for e-invoicing?
    Such documents will not be recognized as valid tax or accounting documents under Paraguayan law. Businesses risk being unable to transact (especially with government), face audit or compliance issues, and lose entitlement to credits or tax-document validity.

4. Is there an advantage for small or medium firms to adopt e-invoicing even before mandate?
    Yes. Early adoption allows businesses to automate invoicing operations, reduce paperwork and manual error, be ready ahead of regulatory deadlines, and ensure smooth compliance, especially when using platforms like Flick Network for structured, automated invoicing.

5. How long do I need to keep e-invoice records in Paraguay?
    Electronic tax documents (DTEs) and related records must be securely archived and remain accessible for audits and compliance verification for the period required by DNIT, ensuring traceability and legal validity.