E-invoicing compliance and regulatory updates - Panama

Last reviewed: July 31, 2026

Electronic Invoicing in Panama

Is e-invoicing mandatory in Panama ?

Panama uses a clearance model, and e-invoicing is mandatory.

Who is affected?

All taxpayers in Panama must comply with the e-invoicing requirements, except for exempt categories such as small businesses below a revenue threshold, cash sales or special tax regimes.

As of 2024, most taxpayers are required to issue electronic invoices.

Compliance requirements

E-invoices must be issued in XML format and digitally signed with a qualified electronic signature (Firma Electrónica Avanzada, FEA) backed by a certificate from a provider registered with the DNFE (Dirección Nacional de Firma Electrónica). Invoices must be submitted through the Panama Electronic Invoice System (SFEP) either via the free invoicing tool (for small businesses) or through Qualified Authorized Providers (PAC). Once validated, the tax authority (DGI) creates a valid PDF, including the unique validation code (CUFE) confirming the invoice’s legal status.

Each invoice must include a unique sequential number and be sent to the recipient in an electronic format, either as a PDF, XML, or via electronic integration.

Key Deadlines

• No upcoming deadlines

Standards & Platforms

Platform

Panama’s electronic invoicing system is called Sistema de Factura Electrónica de Panamá (SFEP).

What formats are required in Panama?

E-invoices must be issued in XML format according to SFEP specifications and digitally signed using a qualified electronic signature (FEA).

Archiving in Panama

What are the archiving requirements in Panama?

All issued and received e-invoices must be stored in their electronic format, including the original XML with metadata, for at least five years or until related tax requirements expire.

Legal invoice:

• For suppliers: A legal invoice is a digitally signed XML file, validated and stamped by a certified PAC, including the unique identifier code (CUFE).
• For buyers: A legal invoice is the XML file received from the supplier that includes the PAC’s stamp as proof of validity and the unique identifier code (CUFE).

Key Actions

Archive properly: Store electronic invoices for five years. Non-SFEP buyers must keep the CAFE copy.

Panamanian e-invoicing and archiving requirements at a glance:

Supplier requirement: Panamanian suppliers must issue invoices in XML format, validate them through a certified PAC, retrieve the PDF with the unique identifier as a QR code (CUFE) and send the invoice to buyers in an electronic format.

Buyer requirement: Buyers must receive the invoice in XML or PDF format (CAFE), including the QR code from the supplier.

Archiving requirement: Invoices must be archived in electronic format for at least five years.