Mandatory Electronic Invoicing for Government Suppliers in Paraguay: What You Must Comply with Starting in 2026

Paraguay’s National Directorate of Tax Revenue (DNIT) has published General Resolution DNIT No. 41, which establishes the mandatory issuance of electronic invoices for all suppliers that enter into contracts with government agencies and public entities.

This measure represents a significant change in public procurement processes and has a direct impact on companies, consultants, and contractors operating within the public sector.

Who Is Required to Issue Electronic Invoices?

According to General Resolution DNIT No. 41, the obligation applies to all taxpayers who enter into contracts in the capacity of:

Supplier
Contractor
Consultant

with the entities defined in Article 2 of Law No. 7021/2022 (Public Supply and Procurement Law).

Which Government Entities Are Covered?

Article 2 of Law No. 7021/2022 includes the following public bodies and entities:

Central Government Administration

Includes, among others:

Legislative, Executive, and Judicial Branches
Office of the Comptroller General of the Republic
Office of the Ombudsman
Office of the Attorney General of the Republic
Public Prosecutor’s Office
Public Defense Ministry
Council of the Magistracy
Superior Electoral Court
Jury for the Impeachment of Judges
General Bankruptcy Syndicate
Other state bodies of a similar nature

Decentralized Entities

Include:

Departmental governments
National universities
Autonomous, self-governing, and regulatory entities
Public social security entities
Public enterprises
Official financial institutions
Central Bank of the State
Other entities of the Decentralized Public Administration

Other Covered Entities

Corporations in which the State holds a majority shareholding
Municipalities

Are There Any Exceptions?

Yes. The resolution does not apply to personal service contracts governed by public service laws.
In these cases, there is no obligation to register with the SIFEN.

When Does the Obligation Take Effect?

The obligation to issue electronic invoices applies to contracts signed as of January 2, 2026.
Additionally, affected taxpayers must register with the SIFEN starting the day following the signing of the respective contract.

What Happens If I Cease to Be a Government Supplier, Contractor, or Consultant?

Even if the taxpayer no longer holds the status of a government supplier, contractor, or consultant, they must continue operating within the SIFEN and remain subject to ongoing compliance with all legal and regulatory provisions applicable to the system.

Is Your Company Ready to Comply with Electronic Invoicing in Paraguay?

At LLB Solutions, we support you throughout the implementation of SIFEN, electronic invoicing, and tax compliance, efficiently integrating these processes with Dynamics 365 Business Central.

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