Failure to comply with business-to-government regulations in Latin America can impact critical business functions, not only resulting in millions of dollars in fines and penalties, but also shipping delays and operational shut-downs. In the most complex regulatory environments, such as Brazil, these mandates even affect sales, procurement and HR functions. Though the end goal of these regulations – increased tax revenues – is the same, each country in Latin America varies significantly in terms of specific requirements and risks of compliance errors. With strict government regulations that can change almost overnight, companies are struggling to keep up with how these requirements differ by country. Here we have outlined the fines and penalties per country. Maintaining compliance in Latin America is complex, especially since mandates are constantly changing. To avoid setbacks: The High Cost of Compliance Errors in Latin America: Fines and Penalties by Country A Closer Look: Fines and Penalties by Country Argentina ▶ $32-$3,222 USD fine per compliance error ▶Operational shut down for three to 10 days ▶Fines double for second infraction within two years ▶Jail terms of 10-30 days for second infraction ▶Revocation of CUIT (tax ID number) Brazil ▶ $130 USD fine per error or missing invoice (must have records dating back five years, if audited) ▶Fines of 75%-225% of tax value per error Chile ▶Up to $31 USD fine per missing or incorrect invoice ▶ Operational shut down for up to six daysColombia ▶Fines of up to $160 USD per e-invoicing infraction ▶Operational shut downs Ecuador ▶$41-$250 USD fine for each compliance error Mexico ▶ $300-$4,602 USD fine per missing or incorrect e-invoice ▶ $15-$4,092 USD fine per invoice that does not match accounting records (eContabilidad) ▶ Up to $200 USD fine for each transaction that should have been posted in the delinquent or inaccurate Polizas ▶ Increased risk of a direct audit by the Mexicon tax authority (SAT) for compliance errors ▶ Adjusted taxable income based on presumption of unreported income, resulting in interest, penalities and fines on the deliquent taxes owed – often 80% to 100% of the imposed tax deficiency ▶Operational shut downs Peru ▶ Operational shut downs for delayed compliance ▶$587 USD fine for each e-invoicing infraction, if audited Uruguay ▶ Suspension of certification due to non-compliance. This document proves good fiscal standing and suspension will result in operational shut downs. About Sovos Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with its secure, scalable and reliable S1 cloud software platform to create a global solution for tax determination, e-invoicing compliance and tax reporting. Contact us +1 866 890 3970 www.sovos.com/contact Atlanta, Boston, Boulder, Cedar Rapids, Minneapolis, Colombia, Lima, Santiago, São Paulo, Tucumán, Amsterdam, Istanbul, London and StockholmNext >