E-invoicing in Panama (2026 Update)

Panama moves a good share of the world's trade through its canal, and its invoices are going digital too. Over the last few years, the DGI has been shifting businesses from fiscal printers to the Sistema de Facturación Electrónica de Panamá (SFEP), its national e-invoicing system.

E-invoicing in Panama is mandatory for every taxpayer registered since January 1, 2022 and for suppliers selling to the state. Other existing businesses can keep using authorized fiscal equipment unless a specific rule moves them to SFEP. Since January 1, 2026, the DGI's free invoicer is limited to taxpayers with up to B/.36,000 in annual income and 100 documents a month; everyone else issues through an authorized provider (PAC).

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The DGI offers a free online tool for issuing e-invoices, called the Facturador Gratuito. Since January 1, 2026, Resolution 201-6299 only lets the smallest businesses use it. To qualify, you must meet both limits:

Go over either one, and you must switch to an authorized provider (PAC) to keep issuing e-invoices.

What is e-invoicing and why has Panama adopted it?

A Panamanian e-invoice is an XML file, signed with the issuer's qualified electronic signature and authorized before the customer receives it.

Three terms that are important to know:

• CUFE: the unique code that identifies each e-invoice.
• CAFE: the readable version, on paper or digital, with a QR code anyone can scan to check the invoice with the DGI.
• PAC: a DGI-authorized provider that validates and authorizes invoices. Very small taxpayers can use the DGI's free invoicer instead.

Panama wants sales data it can verify fast, with less room for ITBMS evasion. For businesses, the DGI promises less paper and storage, faster supplier payments and fewer fake invoices.

The evolution of e-invoicing in Panama

• 2018: DGI pilot starts with its first companies.
• December 29, 2020: Executive Decree 766 sets the rules for documents, users and PACs.
• June 1, 2021: SFEP opens to every registered taxpayer.
• November 26, 2021: Law 256 makes SFEP mandatory for new RUCs from January 1, 2022.
• October 31, 2022: deadline for state suppliers; final exception windows ran to July 31, 2023.
• 2023: sector dates for transport, banks and free zone companies.
• March 1, 2024: fiscal equipment exemption certificates expire.
• January 1, 2026: new free invoicer limits take effect.

B2G e-invoicing in Panama

SFEP is mandatory, apart from approved exceptions. Public entities accept an invoice or CAFE only if the DGI or a PAC authorized it first, and they verify it by CUFE, QR code or web service. A plain PDF won't get you paid. More on receiving e-invoices.

B2B e-invoicing in Panama

Every sale needs an invoice, but B2B doesn't automatically mean e-invoice: existing businesses allowed to use fiscal equipment can keep it. New RUCs, state suppliers, and businesses under sector rules must use SFEP.

Going live with a PAC takes four steps:

1. In e-Tax 2.0, file the SFEP adoption declaration.
2. Get a qualified e-signature certificate from the Public Registry (needed even with a PAC).
3. Pick from the DGI's 18 authorized PACs and test.
4. Confirm the PAC affiliation in e-Tax 2.0.

The free invoicer is web-only, with no integration. A PAC can plug into your ERP, much like the certified providers behind Mexico's CFDI.

B2C e-invoicing in Panama

Every consumer sale needs a fiscal document, including returns and discounts, however it's paid.

SFEP is the only option for:

• Businesses registered since January 1, 2022, from shops to online stores.
• Banks and financial institutions, in phases set by the Ministry of Economy and Finance.
• SEM and EMMA multinationals, since June 30, 2023.

Small hostels (under seven rooms), owners renting their own property, air and international passenger transport, and retailers already on fiscal printers can choose SFEP or a printer.

Shoppers get a CAFE on paper or by email and can stay anonymous as "consumidor final" unless the invoice backs a tax return. You can send final-consumer invoices to your PAC at day's end, and keep issuing for 72 hours if the connection drops.

E-reporting and ITBMS compliance in Panama

Panama has no periodic e-reporting: no SAF-T file and no invoice listing to upload as PAC sends authorized invoices to the DGI within 48 hours.

You still file ITBMS on Form 430, usually monthly by the 15th: 7% standard, 10% on alcohol and accommodation, 15% on tobacco. Fix errors with credit or debit notes, and annul an invoice only if the sale never happened. Keep issued and received documents until the tax limitation period ends, which makes secure archiving part of compliance.

Penalties for non-compliance in Panama

Invoicing fines in Panama start at B/.1 and climb to B/.25,000 plus a temporary closure for repeat offenders, as set by Law 256.

Your trusted partner for e-invoicing in Panama

SFEP has become the standard for new businesses and state suppliers in Panama, and from 2026 most growing companies need a PAC to issue every invoice. DDD Invoices lets software providers and businesses issue, receive and archive compliant e-invoices across markets through one API, with country rule changes handled for you.

FAQs

Is e-invoicing mandatory for every business in Panama?

No. It's mandatory for taxpayers registered since January 1, 2022, state suppliers, and businesses covered by sector rules. Others may keep authorized fiscal equipment.

Who can use the DGI's free invoicer in 2026?

Taxpayers with up to B/.36,000 in annual gross income and no more than 100 electronic documents a month. Above either limit, you need a PAC.

Is a PDF invoice enough?

No. The legal invoice is the signed XML file authorized by a PAC or the DGI, with its own CUFE. A PDF or printed CAFE is only its readable copy, and its QR code lets anyone check it with the DGI.

Do I need my own e-signature if I use a PAC?

Yes. Every issuer signs its own invoices with a qualified certificate from Panama’s Public Registry, because each company is responsible for what it issues. The PAC then validates and authorizes them.