The Inter-American Development Bank (IDB) presented a preliminary assessment confirming the positive impact of the National Integrated Electronic Invoicing System (SIFEN) on increasing tax revenue in Paraguay. The study was delivered to the country's tax and customs authority, the DNIT.
The analysis, which used the international econometric methodology of Differences-in-Differences, examined data from 1,369 companies and 98,568 records between 2018 and 2023. The results show that companies integrated into the system experienced a 27.3% increase in the Value Added Tax (VAT) base, a 31.3% increase in declared VAT, and a 40.7% increase in VAT effectively payable.
In addition to the growth in revenue, the report highlights that SIFEN has strengthened the transparency and traceability of commercial operations, improving the quality of information available to the tax administration and facilitating control and oversight. The IDB also noted that a significant number of companies voluntarily joined the system before it became mandatory, indicating good acceptance by the private sector.
Based on these results, the bank supported the DNIT's strategy to expand the implementation of SIFEN, strengthen training programs, and modernize tax management to boost the formalization of the Paraguayan economy. Electronic invoicing has become an essential tool for companies integrating their management systems (ERP, POS, e-commerce) with tax obligations, through platforms that automate validation, numbering, stamping, and document generation within SIFEN/e-Kuatia.