Contents of this guide
What Panama’s Electronic Invoicing System is
Panama’s Electronic Invoicing System (SFEP) is the platform of the Directorate General of Revenue through which electronic tax documents are issued, validated and consulted. It was born with Executive Decree 766 of 2020 and Law 256 of 2021, which progressively replace fiscal equipment (fiscal printers) with signed electronic documents. The invoice is generated in XML, sent to the DGI directly from the free invoicing tool or through a PAC, and only once authorised can it be delivered to the customer. The aim is for every sale to be recorded in real time with the tax authority and for the ITBMS and income tax to be calculated on verified data. Radar Panamá offers an ITBMS calculator to estimate the tax on each transaction.
Legal basis
Executive Decree 766 of 2020, Law 256 of 2021 and DGI resolutions, the latest being 201-6299 of July 2025.
Two routes
The DGI’s free invoicing tool for small taxpayers or a PAC for everyone else.
Format
Electronically signed XML, validated before delivery, up to 1,000 lines per invoice.
Identification
Every valid document receives a CUFE and is delivered to the customer as a CAFE, on paper or as a PDF.
Who is required and since when
| Taxpayer | Required since | Basis |
|---|---|---|
| New taxpayer IDs (RUC) registered from 2022 | 1 January 2022 | Law 256 of 2021 |
| Government suppliers | October 2023 | DGI resolutions |
| Independent professionals and service providers | 2024 | DGI resolutions |
| Taxpayers already incorporated into the SFEP | Permanent | Law 256 of 2021 |
| Anyone exceeding 36,000 balboas a year or 100 documents a month | 1 January 2026: must migrate to a PAC | Resolution 201-6299 of 2025 |
Taxpayers still using authorised fiscal equipment may continue to do so until the DGI sets their migration date, but any new company and any professional issuing invoices must already do so electronically. Registration for the RUC and the other start-up procedures are in Radar Panamá’s guide to opening a company in Panama.
The free invoicing tool and its limits from 2026
The 36,000-balboa threshold coincides with the one that requires registration as an ITBMS taxpayer, so in practice any business that charges the 7% must invoice through a PAC. The taxes settled on the basis of those invoices are explained in the guide to the taxes a company pays in Panama.
What a PAC is and how to choose one
A Qualified Authorisation Provider is a company authorised by the DGI to receive the taxpayer’s documents, validate them against the SFEP rules, assign the CUFE and return them authorised within seconds. The taxpayer keeps using its own invoicing or accounting system, which connects to the PAC through an interface. There are several authorised PACs, including international electronic invoicing providers and Panamanian companies, and the DGI publishes the official list.
- Integration. The PAC should connect with the software the company already uses (accounting, point of sale, e-commerce) or offer its own.
- Contingency. What happens if the DGI or the PAC does not respond: the rules provide for contingency issuance with later submission, and the PAC must manage it.
- Volume and price. Plans are charged per document or by monthly tiers; it pays to project annual volume.
- Support and archiving. Custody of the XML files for the legal period and support during Panamanian business hours.
- Certification. Check that it appears on the DGI’s current list of PACs and that it manages the qualified electronic signature.
Documents, CUFE and CAFE
| Document | What it is for |
|---|---|
| Electronic invoice for domestic transactions | Sale of goods or services in Panama |
| Export invoice | Sales abroad, without ITBMS |
| Credit note | Cancel or reduce an already authorised invoice |
| Debit note | Increase the amount of an authorised invoice |
| Delivery note | Transfer of goods without a sale |
| Import and free zone invoice | Customs transactions and special regimes |
The CUFE is the unique code the DGI assigns to each authorised document and which allows it to be verified online; the CAFE is the printed or PDF representation the customer receives, with a QR code pointing to the official lookup. Without a CUFE, the document has no tax validity and cannot be used to deduct an expense or credit ITBMS.
How to start invoicing electronically
- Check the status in the RUC and confirm whether the company is in the required group or within the limits of the free tool.
- Obtain the qualified electronic signature, issued by the Public Registry of Panama, for the legal representative or the authorised signatory.
- Register in the SFEP through e-Tax 2.0 and choose the mode: free tool or PAC.
- Contract and integrate the PAC with the invoicing system and test in the DGI’s test environment.
- Issue, validate and deliver: no invoice is delivered to the customer without prior authorisation and a CUFE.
- Keep the XML files and reconcile them each month with the ITBMS return.
Common mistakes and penalties
The most common failures are delivering the CAFE before authorisation, staying on the free tool after exceeding the limits, not issuing a credit note to correct an invoice and using an incorrect RUC or customer details, which invalidates the deduction for the buyer. Invoicing without an authorised system is penalised under the Tax Code as failure to invoice, with fines and possible temporary closure of the premises, and invoices without a CUFE are not deductible for the recipient.
Frequently asked questions
Is electronic invoicing mandatory in Panama?
Yes for every taxpayer registered since 2022, government suppliers, independent professionals and those already in the SFEP. Users of fiscal equipment migrate according to the calendar set by the DGI.
Who can use the DGI’s free invoicing tool from 2026?
Only those with gross annual income of up to 36,000 balboas who issue at most 100 electronic documents a month, under Resolution 201-6299 of 2025.
What is a PAC?
A Qualified Authorisation Provider: a company authorised by the DGI that validates documents, assigns the CUFE and returns them authorised for delivery to the customer.
What is the CUFE?
The Unique Electronic Invoice Code the DGI assigns to each authorised document; without it, the invoice has no tax validity.
What is the CAFE?
The Auxiliary Electronic Invoice Receipt: the printed or PDF representation, with a QR code, delivered to the customer.
Can an electronic invoice be corrected?
It is not edited: it is cancelled or adjusted with a credit or debit note, which is also authorised in the SFEP.
What happens if you invoice without an authorised system?
It is treated as failure to invoice, penalised with a fine and possible temporary closure, and the invoices cannot be used as a deductible expense or ITBMS credit by the buyer.
What is needed to start?
An active RUC, a qualified electronic signature from the Public Registry, registration in the SFEP via e-Tax 2.0 and, if the limits are exceeded, a PAC integrated with the invoicing system.
Sources
- Directorate General of Revenue of Panama, Electronic Invoicing System and list of PACs.
- Electronic invoicing in Panama: regulations, requirements and PACs, Edicom.
- Facturación electrónica en Panamá, Alegra.
- Nuevos requisitos de facturación electrónica en Panamá, LLB Solutions.
- Public Registry of Panama, qualified electronic signature.
- Image: person working at a computer, United States National Park Service, public domain, via Wikimedia Commons.
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