Dominican Republic: Mandatory e-invoicing for small businesses
Additional updates concern the tax treatment of financial leasing and extended e-invoicing deadline for large and medium-sized taxpayers.
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July 16, 2025
The General Directorate of Internal Taxes (DGII) announced that micro and small businesses, unclassified taxpayers, and state entities in the Dominican Republic must implement mandatory electronic invoicing (e-invoicing) by May 15, 2026. This requirement mandates the use of electronic tax receipts for goods and services. Noncompliance will result in penalties as outlined in the Tax Code.
Additional tax updates include:
- Public consultation on tax treatment of financial leasing: The DGII on May 28, 2025, initiated a public consultation on a draft regulation addressing the tax treatment of financial leasing services. The draft proposes exempting financial leasing from value added tax (ITBIS), disallowing ITBIS deductions on leased goods, and permitting income tax deductions for leasing payments. Stakeholders are invited to submit feedback through the DGII’s web forum until July 31, 2025.
- E-invoicing deadline extension for large and medium-sized taxpayers: The DGII issued Notice 12-25 extending the deadline for mandatory e-invoicing for large local and medium-sized taxpayers from May 15, 2025, to November 15, 2025. The extension applies automatically to taxpayers who have initiated the implementation process. Noncompliance after the new deadline will result in penalties under Law No. 32-23.
For more information, contact a KPMG tax professional in the Dominican Republic:
José Manuel Romero | joseromero1@kpmg.com