- A survey of 650 global executives found that 90% report Latin American e-invoicing requirements heavily impact business outlooks and decisions. - Compliance presents challenges like high costs, operational delays from invoice errors, and the complexities of dealing with different local regulations. - Few companies have a centralized, coordinated approach, instead handling compliance independently in each country through local third parties without integrating into their ERP systems. This decentralized approach increases risks of errors and audit issues.

1. Global Executives Weigh In:
Latin American E-Invoicing Heavily Shapes Business
Outlook; Few Companies Prepared

2. PAGE 2
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Table of contents
Latin America: The most complex compliance landscape in the world .......................... 3
Latin American Global Business Survey: Purpose and respondents ................................4
The Results: Compliance heavily impacts business outlooks .............................................5
The Results: Challenges inherent in compliance ................................................................. 6
The Results: Proving the need for a centralized approach ................................................ 7
Conclusion: The proactive approach to Latin American business compliance ............. 8

3. PAGE 3
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INTRODUCTION
Latin America: The most complex
compliance landscape in the world
In the past decade, Latin America has emerged as the most complex region in the world for global businesses to
operate. Lured with compelling incentives, low infrastructure costs and affordable labor, companies operating in Latin
America are now under increased government scrutiny as tax authorities seek to maximize revenues. With sophisticated
requirements and technology, these governments have implemented electronic and automated processes in order to
collect detailed information on business transactions and ensure accurate tax reports.
The successes heralded by these tax authorities are leading to a
global shift toward similar business-to-government requirements.
Read on to learn how companies operating in Latin America are
impacted by this complex business environment and how they are
adapting to constant regulatory change.

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PAGE 4
Latin American
global business survey
PURPOSE AND RESPONDENTS
In a survey of 650 business executives with operations in Latin America,
Invoiceware International and America Economia sought to define just how
significantly businesses are impacted by this volatile, complex compliance
environment. This research also sheds light on just how deeply it seeps into day-to-
day operations and decision making. The results are significant.
With respondents from a range of industries – from consulting and banking to retail
and manufacturing to telecommunications and logistics – they agreed that the
compliance landscape is a significant factor in their business outlooks, presenting
challenges that interrupt processes and directly impact the bottom line. In this
whitepaper, we’ll examine what respondents had to say about how government
mandates proliferate business operations and performance.
ABOUT THE SURVEY SPONSORS
Invoiceware International, the leader in Latin America electronic invoicing and tax
reporting, provides solutions and services that reduce the risk and cost of maintaining
compliance across the region for the world’s largest companies.
America Economia is Latin America’s leading business magazine. Headquartered in Santiago,
Chile, it features a region-wide monthly edition published in Spanish and Portuguese and
regularly updated articles online, as well as country-specific editions in Chile, Brazil, Ecuador
and Mexico.
SNAPSHOT OF THE RESPONDENTS:
 Operations 43.4%
 C-Suite 4.9%
 Technology 13.1%
 Finance 32.0%
 HR 1.6%
 Legal 4.9%
Role
 <US$500 Million 59.8%
 US$500 Million – US$1 Billion 10.7%
 >US$1 Billion 29.5%
Company Revenue
43.4%
4.9%
13.1%
32.0%
4.9%
1.6%
59.8%
10.7%
29.5%

5. PAGE 5
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Of respondents report that
government-mandated e-invoicing
shapes their business outlook
E-invoicing issues caused
operational delays for
of companies responding
LATIN AMERICAN GLOBAL BUSINESS SURVEY RESULTS
Compliance heavily impacts business outlook
• Accounts Payable – Tax liability and accuracy both start with the accounts
payable team. Once a vendor invoice is accepted, the government views
it as accurate and complete. If an invoice includes errors and tax liability is
inaccurate, correcting these mistakes is a complex undertaking.
• Accounts Receivable – The frontlines of e-invoicing compliance, any
breakdown or error in the invoicing process can result in the inability to
ship goods and fulfill orders, shipments being refused by buyers, and
severe government fines and penalties.
• Finance/Accounting – Ultimately responsible for tax liabilities, finance and
accounting teams must ensure the accuracy of their journal entries and
tax reports. Governments are demanding details never reported before,
requiring fundamental shifts in the ways these teams compile reports.
• Shipping – In many countries, a government approved pdf invoice is
required to accompany goods. Errors or delays in the invoicing process
can disrupt operations and supply chains.
• Inbound Receiving – Accepting shipments signals acceptance of vendor
invoices – and therefore tax liability – meaning that inbound receiving
teams are also responsible for ensuring accuracy.
What may have been thought to be a “local” problem when
e-invoicing initiatives were first announced has proven to impact
multinationals at all levels – from local shipping and receiving teams
to shared services, ultimately affecting thier bottom line.
90%
The survey results were overwhelmingly consistent: 90% of
respondents reported that government-mandated e-invoicing is
important in determining their business outlook for the region.
Why? These businesses are seeing the real implications of
compliance-related errors. In fact, 15.4% of respondents have faced
penalties or temporary shut downs as a result of a government
tax audit or failure to comply with mandates, and 38.5% have had
an invoice error that caused a delay in operations. The costs
associated with these penalties and operational shutdowns can
equate to millions of dollars in sunk costs.
The impacts of these measures ripple throughout global businesses,
can’t be siloed or managed from a single department. Currently,
compliance involves:
• IT – It’s essential that compliance is run through your existing corporate
ERP to reduce the risk of errors, but with frequent legislative changes and
unique requirements in every single country – sometimes even in each
city – IT implementation, updates and management can be a costly use of
internal resources.
38.5%

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PAGE 6
LATIN AMERICAN GLOBAL BUSINESS SURVEY RESULTS
Challenges inherent in compliance
Compliance should be managed within your ERP – providing
a single source of truth and minimizing the time that AP,
AR and accounting teams spend learning new systems and
importing data – but ERP-issued compliance solutions lack
critical functionality. In response, some companies manage
compliance internally – requiring up to 15 full time equivalents
– or move compliance measures outside of their ERP. These
are costly mistakes. Internal compliance management
requires significant internal resources, as the survey reports,
taking time away from core job functions and strategy. Yet
maintaining compliance outside of their ERP leaves companies
at risk of audit-triggering errors and discrepancies.
Outside of internal system management, maintenance
and costs, the costs and efforts associated with managing
multiple local third-parties is the next most common challenge
reported. Some companies manage compliance through
multiple vendors – segmented by each country in which they
operate or separate vendors for e-invoicing versus accounts
payable, etc. But again, this approach is risky – leaving
companies without a central source of truth and causing
management and troubleshooting headaches.
With penalties that can cost global companies millions and
shut down operations, e-invoicing compliance presents several
challenges to businesses operating in Latin America. Survey
respondents noted the following key compliance challenges.
Do not feel confident in maintaining
compliance with ongoing changes
10.0%
The need to work with multiple local third-
parties
24.6%
Updating systems / on-boarding team to
new processes and formats
47.7%
Costs to update systems throughout the
year
40.8%
Costs associated in working with third-
parties
27.7%
Staff cost associated with managing
mandates
23.8%
Technical implementation was the most commonly reported
challenge, followed closely by related costs. With frequent
updates in requirements, compliance can be a technical
nightmare, requiring constant fire drills to ensure accuracy.

7. PAGE 7
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LATIN AMERICAN GLOBAL BUSINESS SURVEY RESULTS
Proving the need for a centralized approach
[The risk of FCPA
infractions means Latin
American compliance
MUST be treated as a
corporate issue.]
Perhaps the most insightful, and troubling, survey results came
from responses regarding the current approach to compliance
in Latin America.
Trending toward local-level, third-party approach
The majority of respondents - 73.1% - are handling mandated
e-invoicing at the local level with no corporate coordination.
Further, more than half do not manage compliance within their
ERP. The risk of such decentralized strategies are profound.
Most notably, without a centralized process and corporate
oversight, the risk of errors, discrepancies and even data
manipulation increases. Some enterprises have received penalties
under the Foreign Corrupt Practices Act for infractions unveiled in
compliance reports – meaning e-invoicing compliance MUST be
treated as a corporate issue, not simply a local task.
Further, a decentralized approach means that critical data
is often housed outside of corporate ERPs, presenting two
problems. First, duplication of effort increases the staffing costs
associated with compliance. But more profoundly, it means
that there is not one centralized record system. In the event
of an audit, companies using this approach will not have the
records needed to support their reports and tax deductions.
 Managed and coordinated
from Global HQ 26.9%
 Managed independently
at country Level 73.1%
How does your company currently manage e-invoicing and
fiscal reporting requirements?
26.9%
73.1%

8. PAGE 8
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Unawareness and lack of preparation abound
When asked if they were fully aware of the latest mandates in
Colombia, Mexico, Peru and Brazil, almost half of respondents –
49.2% – indicated that they have little or no understanding of the
new mandates. Only 27.7% indicated that they were fully ready for
these impending requirements.
As showcased in the results to questions surrounding challenges,
compliance is not a simple endeavor, requiring significant time,
personnel and technological resources. Being “unaware” is not an
excuse that tax authorities will forgive, so it is imperative that
companies with operations in Latin America have an
understanding of the full scope of the mandates and take a
proactive approach to manage these initiatives.
CONCLUSION
The proactive approach to Latin
American business compliance
There are two ways to approach compliance in Latin America:
1) as a must do, or 2) as an opportunity. Companies who see
compliance as a “must do” are often faced with constant fire
drills to update their processes and respond to issues, sinking
time and money into approaches that merely get them by –
but that often leaves them vulnerable to errors.
Companies who see these initiatives as an opportunity for
innovation and to streamline processes, however, are reaping
rewards. With government-mandated standardization,
proactive companies are improving internal processes,
increasing supply chain efficiencies and optimizing cash flow.
Global technology leader Philips, for example, has realized a
25% increase in productivity, while reducing maintenance costs
by 80% by looking at compliance from a strategic, centralized,
proactive perspective.
Are you aware of the latest mandates rolling out in Colombia,
Brazil, Mexico, and Peru?
 Yes; fully understand
& ready 27.7%
 Pretty sure; need to
research, not ready 23.1%
 Not exactly; heard about it
but know little 35.4%
 Not at all; not ready 13.8%
27.7%
35.4%
23.1%
13.8%

9. Contact Invoiceware to learn how a proactive compliance approach can benefit your organization.
Invoicewareint.com | 800-988-0728
Invoiceware International standardizes complex compliance regulations in Latin America
for the world’s largest companies, including The Coca-Cola Company, Philips, Kellogg,
DuPont and Siemens.