A CFO at a Lyon-based mid-market company specialising in industrial packaging discovers during an annual LATAM subsidiary audit that the Colombian entity’s e-invoicing is validated in real time by the DIAN — but that the Argentine subsidiary’s invoices have been missing the mandatory QR code required by ARCA (formerly AFIP) since August 2026. The Peruvian entity, meanwhile, still uses the SUNAT online portal directly, without going through a certified OSE operator, which limits its oversight and archiving capability. Three subsidiaries, three tax regimes, three very different compliance risk levels — and a group that had not anticipated the disparity.
Our guides on Mexico and CFDI 4.0 and on Brazil (SPED/NF-e) cover some of the most mature electronic tax systems in the world. Colombia, Argentina and Peru are less familiar to European IT teams — but they demand the same rigour in ERP localisation.
Three Strategic Markets, Three Very Different Tax Regimes
South America outside Mexico and Brazil is often treated as a homogeneous block in European groups’ ERP deployment strategies. That is an expensive mistake. Colombia, Argentina and Peru share the same language and some common vendors, but their fiscal architectures diverge radically.
Colombia has built a mature e-invoicing system, driven by the DIAN since 2019 with upfront real-time validation: every invoice must be approved by the tax authority before it is delivered to the customer. This is the model closest to Mexico’s CFDI and Italy’s SdI in its real-time control logic.
Argentina is the most complex market in the region for ERP teams — not because of the sophistication of its tax system, but because of its regulatory instability and the need to manage accounting under permanent inflation. The tax authority itself changed its name in October 2024: AFIP became ARCA (Agencia de Recaudación y Control Aduanero) by presidential decree. E-invoicing obligations continue under the same taxpayer number (CUIT).
Peru offers a hybrid model with no equivalent in Europe: companies can choose between issuing invoices directly via the SUNAT portal or going through a certified private operator (OSE) that validates and archives on their behalf. This two-path architecture simplifies market entry, but requires a clear strategic decision at ERP deployment time.
Colombia: DIAN E-Invoicing and Digital Maturity
DIAN E-Invoicing — Mandatory Real-Time Upfront Validation for All Companies
Colombia rolled out mandatory e-invoicing progressively from 2019. By 2026, virtually all legal entities and self-employed individuals generating commercial income are required to invoice electronically (Alegra, 2026 obligations). DIAN Resolution 000165 of November 2023 eliminated the former 10-day transmission window: each invoice must now be submitted to the DIAN on the same day it is issued.
The system operates through upfront validation: the ERP generates the invoice in XML, submits it in real time to the DIAN via API or through a software de facturación (a technical intermediary, unregulated but practically necessary), the DIAN validates the structure and catalogues, then returns the certified invoice together with the CUFE (Código Único de Factura Electrónica), a unique 40-character identifier. Without a valid CUFE, the invoice has no fiscal or legal standing (DIAN, facturación electrónica).
Critical ERP considerations:
- CUFE: generated for each sales invoice and debit note. The ERP must store the CUFE returned by the DIAN and display it on the printed representation (PDF) provided to the customer, with a QR code linking to the DIAN portal.
- CUDE: the CUFE counterpart for credit notes (Nota Crédito) and equivalent documents. Same upfront validation logic.
- Retention period: 5 years under Colombia’s Commercial Code. Certified XML files must remain accessible and intact throughout this period.
The main operational constraint is network dependency: without a stable internet connection, the ERP cannot obtain the CUFE and therefore cannot issue a legal invoice. A paper contingency procedure is available (deferred transmission within 48 hours of service restoration), but it is limited to proven and documented outages. For an industrial subsidiary with high invoice volumes, this single point of failure must be addressed in the business continuity plan.
Retención en la Fuente — A Colombian Withholding Tax Peculiarity to Configure in the ERP
Colombia imposes a withholding-at-source system (Retención en la Fuente) on commercial payments that has no direct equivalent in continental Europe. When a large company (qualified as an “agente retenedor”) pays a supplier invoice, it withholds a percentage of the amount at source depending on the nature of the service (4% on professional services, 2.5% on goods purchases, etc.) and remits it directly to the DIAN on behalf of the supplier.
The ERP impact is direct: the accounts payable module must know whether the entity is an agente retenedor, calculate applicable rates by service type, generate the certificado de retención issued to the supplier, and produce the monthly declarations to the DIAN. An ERP deployed without this configuration will produce incorrect payments and missing declarations.
DIAN-Certified ERP Vendors
Siigo is the undisputed leader in the Colombian SME market. The cloud solution serves more than 120,000 Colombian SMEs according to its own data (guiadesoftware.com, Siigo), with native DIAN integration covering e-invoicing, Retención en la Fuente and tax declarations. Siigo is particularly well suited to entities with fewer than 100 users whose operations are concentrated in Colombia.
World Office is the mid-market alternative for distribution companies with more complex inventory needs. The solution also includes DIAN compliance.
SAP S/4HANA and Oracle Fusion Cloud offer Colombia localisations with certified DIAN integration, relevant for a subsidiary of a group whose European headquarters has standardised on one of these platforms. The localisation maintenance (annual DIAN resolution updates) is then managed by the vendor within its release cycles.
Alegra is a lightweight SaaS option for small subsidiaries (fewer than 20 users), with full DIAN compliance and a quick onboarding curve.
Argentina: ARCA, Inflation and Regulatory Instability
The ARCA (Formerly AFIP) Regime — CAE Mandatory, CAEA Restricted to Emergencies Since 2026
Argentina’s tax authority was called AFIP (Administración Federal de Ingresos Públicos) until October 2024, when the government dissolved it and created ARCA (Agencia de Recaudación y Control Aduanero) by decree 953/2024 (Sovos, ARCA creation). E-invoicing obligations, taxpayer numbers (CUIT), fiscal access codes (Clave Fiscal) and validation systems remain unchanged under the new body. Only the institutional name has changed.
Every Argentine electronic invoice must be authorised online by ARCA, which returns a CAE (Código de Autorización Electrónico) with an expiry date. An invoice without a valid CAE has no fiscal standing. Until 2025, companies could use the CAEA (Código de Autorización Electrónico Anticipado) — an advance authorisation obtained for a 15-day window — as their primary issuance mode, particularly for environments with unstable connectivity. Since June 2026, CAEA has been restricted to technical contingency situations only (Estudio Piccinini, CAEA 2026). Real-time CAE is now the mandatory mode. For subsidiaries that had configured their ERP in permanent CAEA mode, this transition requires an update to the connection parameters.
2026 update: ARCA now requires the inclusion of a QR code on every printed invoice or graphic representation, encoding the key invoice data (issuer CUIT, date, amount, CAE). This QR code allows ARCA to instantly verify invoice authenticity during an audit.
Invoice classes to master in the ERP configuration:
- Factura A: between VAT-registered entities, with a detailed VAT breakdown (21% standard rate)
- Factura B: from a VAT-registered entity to a non-registered entity or end consumer, VAT included
- Factura C: issued by a non-VAT-registered entity (monotributista)
- Factura de Crédito Electrónica (FCE): for B2B transactions above a threshold set by ARCA, enabling negotiation on capital markets. This Argentine market peculiarity has no equivalent in Europe.
The Impact of Inflation on ERP Configuration
Argentina has been experiencing structurally high inflation for several years. The annual rate was around 200–270% in 2024 (Cedalio, Argentina compliance). Even with stabilisation measures introduced in early 2025, an Argentine subsidiary’s ERP configuration must incorporate several mechanisms with no European equivalent:
Multi-currency and asset restatement. Argentine accounting standards (FACPCE, frameworks RT 6 and RT 17) require adjusting financial statements to account for inflation — a practice called “reexpresión en moneda homogénea” or inflation accounting. The ERP must periodically recalculate the value of fixed assets, inventories and equity in homogeneous currency. This functionality is absent from the majority of European ERPs in their standard configuration.
Price list management. Argentine companies’ price lists are updated very frequently — sometimes monthly. The ERP must manage price list versions with short validity dates and automatic indexation mechanisms.
Provincial withholding management. Unlike Colombia, where Retención en la Fuente is federal and relatively uniform, Argentina layers ARCA (federal) withholdings with provincial percepciones and retenciones on Ingresos Brutos (the equivalent of a gross revenue tax at the provincial level). Rates vary by province and sector, multiplying the number of tax configurations in the ERP.
ARCA-Certified ERP Vendors
Tango Gestión (Axoft) is the most widely used management software among Argentine SMEs and mid-market companies for over 30 years. Axoft, the creator of Tango, was acquired in October 2026 by Vela LatAm, a subsidiary of Canadian group Constellation Software (prensax.com, Axoft acquisition). Operational continuity and ARCA localisation are maintained. Tango Gestión covers e-invoicing with CAE/CAEA, inflation accounting management under FACPCE standards, and configurable provincial withholdings.
TOTVS Argentina is the local subsidiary of the Brazilian ERP giant. TOTVS has a strong presence in manufacturing and distribution. For a European subsidiary whose group also operates in Brazil, ecosystem consistency with TOTVS Protheus can be an advantage.
SAP Argentina and Microsoft Dynamics 365 (with Microsoft’s Argentina localisation) cover large companies and international group subsidiaries. SAP DRC (Document and Reporting Compliance) includes Argentina localisation with CAE management and inflation-adjusted financial statements. D365 Finance offers an ARCA-certified Argentina localisation, available through certified local partners.
Peru: SUNAT, OSE and the Two-Path Model
The SEE System — Two Routes to Compliance
Peru’s electronic invoicing system (SEE, Sistema de Emisión Electrónica) offers two issuance paths, setting it apart from the Mexican, Brazilian and Colombian models:
SEE-SOL (Sistema de Operaciones en Línea): a free online portal provided by the SUNAT. Suited to very low volumes, it cannot be integrated into a high-volume business ERP.
Via OSE (Operador de Servicios Electrónicos): a private operator certified by SUNAT receives XML invoices from the ERP, validates them (technical and fiscal compliance), archives them, then transmits them to the SUNAT. The main certified OSEs in 2026 are Nubefact, Bizlinks, EFACT, TCI and Gosocket (aypdigital.com, SUNAT 2026).
The strategic choice: for a subsidiary generating more than a few dozen invoices per month, going through an OSE is essential. The OSE ensures not only transmission to the SUNAT but also legal archiving. The legal retention period in Peru is 7 years under the Peruvian tax code.
2026 calendar highlights: SUNAT reinforced several obligations simultaneously this year. The SIRE (Integrated Electronic Records System) has been mandatory for major taxpayers (PRICOS) since January 2026. New CPE (Comprobante de Pago Electrónico) validations came into effect in February. And the GRE (Guía de Remisión Electrónica), which accompanies goods movements similarly to Mexico’s Carta Porte, has been mandatory since 30 June 2026 for all companies.
Transmission deadlines: invoices and associated notes must be submitted to the SUNAT or an OSE within 3 calendar days of the issue date. Boletas de venta (for end consumers) are transmitted as a daily summary within the following 7 days (aypdigital.com, SUNAT).
Peruvian VAT: the standard rate is 18% (IGV, Impuesto General a las Ventas, which includes 2% municipal tax).
SUNAT-Certified Local Solutions
Defontana is a Chilean cloud ERP founded in 2003, with more than 8,000 client companies across Latin America and a significant presence in Peru (guiadesoftware.com, Defontana). The solution integrates SUNAT compliance, certified OSE connections and Peruvian payroll management. It is the commonly chosen option for mid-market companies with 50 to 300 users.
iGEA ERP is a 100% Peruvian solution, positioned for local SMEs (distribution, pharmacies, wholesale trade) with native SUNAT compliance and a competitive entry price.
Softland Peru (Softland group, Chilean origin) is a mid-market alternative with a strong presence in the industrial sector. The solution covers SUNAT obligations and has connectors for the main OSEs in the market.
Oracle NetSuite, SAP Business One and Dynamics 365 offer Peru localisations, relevant for international group subsidiaries. SUNAT validation typically goes through integration of a third-party OSE (Nubefact or EFACT) connected via API to the ERP’s invoicing module.
Comparing the Three Markets
| Criterion | Colombia | Argentina | Peru |
|---|---|---|---|
| Tax authority | DIAN | ARCA (formerly AFIP) | SUNAT |
| E-invoicing model | Upfront real-time validation | Real-time CAE (CAEA = emergency only since 2026) | Two paths: SEE-SOL or certified OSE |
| Unique invoice identifier | CUFE (40 characters) | CAE + QR code | CDR (Constancia de Recepción from SUNAT/OSE) |
| Standard VAT rate | 19% (IVA) | 21% (IVA) | 18% (IGV) |
| Regulatory complexity | Moderate | Very high (instability + inflation) | Moderate |
| Legal retention period | 5 years | 10 years | 7 years |
| Critical ERP specificity | Retención en la Fuente | Inflation accounting, provincial percepciones | GRE (transport), certified OSE |
| Local SME ERP leader | Siigo | Tango Gestión (Axoft/Constellation) | iGEA ERP, Defontana |
5 Practical Recommendations for IT Directors Managing South American Subsidiaries
1. Favour a global ERP with certified localisation. For a subsidiary of fewer than 100 users in a European group standardised on SAP, Oracle or Microsoft, activating the vendor’s certified localisation is generally preferable to deploying a local ERP. Data portability to the group, financial consolidation and the security of regulatory updates are advantages that far outweigh activation costs. The alternative (Siigo, Tango or iGEA in silos) invariably produces a group integration problem in the medium term.
2. Include a local integrator in every RFP. Even if the ERP vendor is the same as at the group level, the Colombian, Argentine and Peruvian subsidiaries each require a local partner who knows the local tax catalogues, filing forms and certification procedures. Global vendors generally delegate this localisation to their partner network. Verifying the local compliance certification of the partner (DIAN partner, ARCA partner, SUNAT partner) is an essential due diligence step.
3. Plan for an annual review of fiscal parameters in Argentina. ARCA modifies its resolutions on withholding thresholds, provincial percepción rates and filing formats two to three times a year on average. The ERP maintenance budget for the Argentine subsidiary must include this update workload. Negotiate this upfront with the local integrator (include regulatory updates in the maintenance package).
4. Integrate the GRE in Peru from the deployment phase. The Guía de Remisión Electrónica has been mandatory since June 2026 for all goods movements in Peru. Its integration into the ERP’s transport orders and delivery notes requires specific configuration, similar to Mexico’s Carta Porte. Missing this during deployment leads to a costly corrective compliance effort.
5. Set the archiving period to the longest requirement in the market. Colombia (5 years), Argentina (10 years), Peru (7 years): if the group centralises e-invoice archiving for its LATAM subsidiaries in a single system, set the retention period to 10 years (the Argentine maximum) to avoid differentiated management. The additional storage cost is negligible compared to the non-compliance risk during an ARCA audit.
To go deeper on your group’s LATAM markets, see our CFDI 4.0 guide for the Mexican subsidiary, our ERP Brazil analysis (SPED, NF-e, multi-tier fiscal complexity), and our multi-site, multi-entity ERP guide for group consolidation.
