Chile DTE

e-Invoicing 101

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 Table of
Contents
Executive Summary......................................................3

Summary of Chilean E-Invoicing Requirements........4

Process Architecture.....................................................6

Document Types...........................................................7

Selecting a Solution for Latin America

e-Invoicing .................................................................... 8

Invoiceware International’s Chile

DTE e-Invoicing Solution .......................................... 10

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Chile DTE
e-Invoicing 101
Executive Summary
Until 2014, the requirement to utilize electronic invoicing in Chile was voluntary.
Companies that chose to transition to electronic invoicing must do so in a certain way
managed by the government; however, companies were not forced to issue invoices
electronically. In 2014, this changed significantly, as Chile announced mandatory
e-invoicing and reporting requirements.

Now, Chile is one of the most comprehensive compliance environments

in Latin America and across the globe. The requirements here are
constantly changing and expanding into an increasing number of
business process, including finance, accounts receivable, accounts
payable, inbound receiving and shipping. These complexities make it
critical for companies operating in Chile to have a defined, proactive
strategy to manage compliance; those who don’t risk fines,
penalties and even operational shut downs as officials enforce
these mandates.

In this eBook, we discuss specific mandates in Chile, the

process architecture involved with compliance, the
documents required and, most importantly, questions to
ask as your team evaluates potential solutions.

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Summary of Chilean E-Invoicing
Requirements
Chile is among a unique group of countries focused on driving automation through the economy.
Ultimately, these requirements improve the government’s visibility into corporate transactions,
ensuring they are receiving accurate tax payments. However, these requirements have a hidden
benefit of allowing proactive companies to drive internal automation, improving accuracy and
efficiency and ultimately decreasing costs.

Key features of the Chilean e-invoicing model include:

• Folios/Guia de Despacho: The Chilean • Monthly Reports: At the end of each

electronic invoicing model combines elements month, three compliance reports must
of the batch-oriented folio scheme used in be uploaded to the government web site,
the Mexico’s original model with the real-time either manually or through an automated
communication found in Brazil and Argentina. web service. These reports summarize
The process begins in two steps. First, a the DTE transactions produced during the
delivery document (the “Guia Despacho” or month and also include any paper DTE’s
“bill of lading”) is generated and registered produced in contingency.
with the government. Then, other fiscal
documents (like the invoice or credit/debit • Inbound: Customers issuing outbound
notes) are generated and registered with DTE must be able to receive it inbound
reference to the original document as follow- also. This involves providing an XML
on activities occur later in the purchasing response back to the SII via HTTP post,
process. which is then forwarded on to the
supplier by the SII via email. The buyer
• Outbound: Currently, there are 10 types has 8 days to provide this response
of electronic fiscal documents required – if they do not affirmatively reject or
in Chile, referred to collectively as notify the supplier of an issue within
“Documentos Tributarios Electrónicos” or
DTE. The government issues specific ranges of
document numbers for each DTE type, which
are used by the company in sequence as each
DTE is produced. The fiscal data required for
each document is packaged in a DTE-specific
XML format, and then signed and registered
with the government in real time via the SII’s
(Chilean tax authority) web services. Signing
is performed using the private/public key pair
given to the taxpayer by the SII.

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 that time, then the invoice is presumed to the government once operations have
have been accepted. If the buyer rejects the resumed, though they are included in the
inbound invoice, then it is up to the supplier relevant reporting extracts at month-end.
to correct it via credit memo – the only means
of compliance with the SII’s mandates. In the • Cancellations: Cancellations are
event of a discrepancy between XML and eschewed in favor of separate credit/rebill
paper DTE, only the XML file will count. If the transactions. If an invoice has been created
XML file is invalid, then the entire transaction in SAP and not yet approved by SII, it can
is invalid, even if the paper DTE was printed be canceled or voided via web services.
correctly. Government web services endpoints If the DTE has been approved, however,
provide for inbound validation, and buyers are the only remediation is via credit note.
strongly encouraged to perform inbound fiscal If a buyer rejects an outbound invoice
compliance validation on all inbound DTE. within eight days, a credit note is the only
approved means to correct or adjust it.
• Contingency: Paper-based DTE documents
are allowed as a contingency measure in • Web Services: Registration functions are
case of technical difficulty. Contingency DTE provided via web services maintained
are printed on special paper procured from by the government. Multiple users can
vendors authorized by the government and access the system based upon permissions
then “legalized” through a government- configured in the SII portal for each RUT
applied watermark (timbre de agua) applied (taxpayer), but the monthly compliance
by the SII and delivered to the company itself. reports must be submitted using the
Contingency DTE’s have a separate range of credentials of the company’s fiscal
folio numbers and need not be registered with manager.

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 1 Folio Range SII
Authorization

Process
2 Folio
Architecture Range

A high-level summary of the

4 Invoice 6 Verify
full process architecture is
illustrated here:

3 Purchase

Vendor

5 Invoice

7 Accept
Buyer

Folio Authorization: A folio range is a set of sequential integers up to eight digits in

length, optionally prefaced with a “series prefix” of up to four alphanumeric characters. A separate folio
range is needed for each DTE document type with each range registered and authorized by the SII in
advance. Folios are requested manually by authorized RUT users (taxpayers) via the SII website, with
the authorization delivered to the taxpayer directly via secure email or from the website directly. Once
approved, the XML authorization block includes the starting folio number, the ending folio number and
a private/public key pair to be used during the signing process as each number from the range is applied
to individual DTE documents over time. Because the range of approved numbers is typically quite large,
authorization is usually performed infrequently, about once per year.

Folios are managed within the taxpayer’s ERP system.

E-Invoicing: As companies create fiscal documents needing government approval, the required
fiscal attributes are extracted from the ERP and packaged into the standard XML format, which is then
submitted to the SII via web services. There are government web services available for sending, validating,
updating and status retrieval. Upon initial submission of the Guía de Despacho, a message token is
returned, which can be used as an identifier in subsequent events to query for processing status or to
obtain the approval codes available once final processing is complete. Structure or communication errors
can be detected automatically via the web service, though content errors like invalid codes or sums are
delivered only via email by the SII.

Verification: Buyer acknowledges receipt of inbound documents either affirmatively or

implicitly by not responding within eight days of initial receipt.

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Document Types
There are 10 document types (plus three monthly reporting extracts) required in Chile. Formats
include separate XML structures for goods versus services invoices, for export and consignment
invoices, and for “purchase invoices” or documentation made by a buyer on behalf of an individual
seller that is not able to provide an invoice either electronically or on paper. There are also DTE
versions for documents “without VAT effect,” which model fiscal scenarios that are exempt from
VAT (as when selling to the government or universities or with certain types of goods) – these are
referred to as “exenta” DTE types.

Chilean DTE Types

English Spanish

Goods Invoice Factura

Exempt Goods Invoice Factura Extenta

Bill of Lading Guia de Despacho

Credit Note Nota de Credito

Debit Note Nota de Debito

Purchase Invoice Factura de Compra

Consignment Invoice Liquidacion Factura

Export Invoice Factura de Exportacion

Export Credit Nota de Credito Exportacion

Export Debit Nota de Debito Exportacion

Consumer Invoice Boleta Electronica

Exempt Consumer Invoice Boleta Extenta Electronica

Consumer Invoice Register Libro de Boletas

Bill of Lading Register Libro de Guias

Sales Register Libro de Venta

Consignment Sales Register Libro de Compra

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Selecting a Solution for Chile e-Invoicing
Compliance is a complex process, and it’s not a one-time integration. Companies must make regular
updates to maintain compliance, and must ensure that all of their systems and processes are in
order to avoid errors. That’s why selecting the right e-invoicing and reporting solution in Chile is so
critical. Delayed shipments, angry customers and out of control internal support costs result from
incomplete or inadequate selection processes.

Below are key questions to ask regarding any potential solution:

ERP Process Expertise Enterprise Class Production Support

80% of the cost to implement, monitor and • What happens when there is an issue?
maintain compliance with Latin America
e-invoicing legislation resides in the • Who do you call?
configuration of your business processes.
• Who fixes the issue?

• How is the data extracted from the ERP • What if the issue is inside the ERP system?
system?
• Who ensures that the data is synchronized
• Do you have multiple solutions that reside between all solution components?
outside the ERP system? (The answer should
be no! Your ERP should be the sole system of • Does the system automatically transition into
record to avoid errors and discrepancies). and out of “Contingency Mode” so you can
always ship?
• Do you have to manage a middleware
connection? • Can you reach someone in fluent Portuguese,
Spanish and English? (If not, you will spend as
• Do you have a single monitor or multiple much time translating as you will be isolating
monitors, as this will affect your ability to the mission critical issues).
support a real-time process?

• Do your users have to log into different Change Management for New Legislation
applications? • What does the maintenance fee cover?
• Is your ERP the true system of record or is it • Does the solution provider proactively keep
the third-party solution? you informed of the changes?
• Does the solution offer both PO backed and • Are all updates, including the labor, included
non-PO backed matching and workflows, in the annual maintenance?
enabling the AP department to reduce time
and costs? • Who installs the updates?

• Does the solution provide an Inbound • Do the updates cover all solution
Receiving process for the warehouse to components, or do you have to update the
simplify the receiving of goods via the invoice ERP system or middleware connections
that arrives with the truck? internally?

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Local versus Regional • Argentina
• Is your provider multi-lingual and able to • Accounts Receivable - Sending
implement, monitor and maintain in English,
Spanish and Portuguese so your entire • Chile
team (local and global) can access the same
support? • Accounts Receivable – Sending
• Accounts Payable – Receiving
• Does your solution provider support one
or multiple mandated countries? More • Reporting
importantly, how many processes are
supported within each country? There • Peru
are constantly changing requirements in • Accounts Receivable - Sending
many Latin America countries (breakdown
• Accounts Payable – Receiving
of current requirements below), and few
solution providers support multiple countries. • Reporting

• Brazil • Uruguay
• Accounts Receivable - Sending • Accounts Receivable – Sending
• Accounts Payable - Receiving • Accounts Payable – Receiving
• Electronic Accounting • Daily Summary Reports

• eSocial - HR • Ecuador

• Mexico • Accounts Receivable – Sending

• Accounts Receivable - Sending • Colombia

• Accounts Payable – Receiving • Accounts Receivable – Sending
• Electronic Accounting • Accounts Payable – Receiving
• Nomina Electronica - HR • Reporting

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Invoiceware International –
Chile DTE e-Invoicing Solution
As the largest business network in Latin America and the only regional compliance solution that
integrates natively within your existing ERP, Invoiceware reduces the risk and cost of maintaining
compliance. We empower clients to capitalize on government standardized e-invoicing to improve
supply chain efficiency and optimize cash flow, while simplifying the mandates, implementation
and ongoing change management required by Latin America’s complex business mandates. We
work with multinationals that have complex processes, customized ERP deployments, and require
enterprise class implementations and ongoing support to provide:

• Expertise gained from helping more than • Guaranteed Compliance. Invoiceware

250 global enterprises, including 50 of the International maintains the regulatory
Fortune 500, simplify complex Latin America processes on one network, so you don’t have
eInvoicing requirements. the expense of researching, integrating or
maintaining compliance. With constantly
• Integration with complex ERP structures. changing regulations, our service locks in
Companies need to know not only what the your compliance for the life of your contract.
regulations are, but how they affect ERP Never worry about the regulations or how
systems. Country-specific ERP extensions they affect your ERP system again.
enable your ERP system to transact with
the tax authority while eliminating costly • Enterprise Class Production Support.
and intensive upgrades and configurations Invoiceware International’s 24x7 support
required by these constantly changing in local language (English, Spanish and
regulations. Additionally, our built-in Portuguese) resolves your issues in real-
contingency mode allows you to continue time, ensuring your trucks are legally able
operations when the government systems to leave the warehouse and your business
are down. keeps running.

Contact Us
Please visit www.invoicewareint.com for more information or contact us at 800-988-0728
or [email protected].

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