Paraguay 2026: SIFEN and the Next Operational Stage of Electronic Invoicing

Electronic invoicing in Paraguay is structured around the National Integrated Electronic Invoicing System (SIFEN), where tax documents acquire operational validity only after passing the technical controls defined by the National Directorate of Tax Revenue (DNIT).

This framework is no longer emerging. According to official figures, the DNIT reports that more than 2 billion Electronic Tax Documents (DTEs) have been received through SIFEN, consolidating the system as a core component of tax compliance in the country.

From invoice to DTE: the central role of SIFEN

Within the SIFEN environment, issuing an invoice is not the final step. The DNIT has defined a specific technical workflow in which each document must be structured in XML format, include a digital signature in accordance with current standards, and be subject to technical validations that determine its acceptance or rejection within the system.

The ecosystem includes sales documents, complementary documents, and other records with tax impact. Among those defined by the DNIT are the Electronic Invoice, Electronic Exchange Invoice, Electronic Export Invoice, Self-Invoice, credit and debit notes, as well as withholding and perception documents, among others.

Issuance models: e-Kuatia and e-Kuatia’i

The DNIT establishes two operational models for electronic issuance:

e-Kuatia’i, aimed at small taxpayers, under specific operating conditions (such as a single establishment and point of issuance), using the system provided by the DNIT and applying digital signatures in line with the published framework.
e-Kuatia, intended for medium and large taxpayers, which involves submitting documents to SIFEN through proprietary developments or technological integrations aligned with official technical specifications.

2026: mandatory SIFEN adoption for government suppliers

As of January 2, 2026, the DNIT established the mandatory adoption of SIFEN for taxpayers who enter into contracts as suppliers, contractors, or consultants with entities covered by public procurement regulations.

This requirement is detailed in General Resolution DNIT No. 41/2025, which defines its scope and applicability to obligated parties.

Benefits reported by the DNIT

Beyond the regulatory framework, the DNIT has published official figures on the operational impact of electronic invoicing under the e-Kuatia scheme:

Issuance: average savings of 30% to 75% per issued invoice.
Reception: cost reductions of 40% to 80% per received invoice.
Distribution: cost reductions of 90% to 100% in courier services.
Storage: cost reductions of 30% to 50%.

Tax control and audit activity

The consolidation of the electronic ecosystem goes hand in hand with an active control approach. According to official data, during 2025 the DNIT carried out 21,377 tax control procedures and executed 431 targeted tax audits, reinforcing the importance of document quality, traceability, and consistency.

Integration and operational continuity in a regional context

In environments where document volume, technical validations, digital signatures, and specific mandatory requirements converge—such as those applicable to government suppliers—the challenge is no longer simply issuing documents. The focus shifts to proper integration, XML quality control, operational continuity, and the ability to adapt to regulatory changes, particularly for organizations with regional operations.

Learn how to approach electronic compliance in Paraguay and across Latin America with an integrated localization strategy.

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