First week on the new ERP. Sales issues its first invoice from Dynamics 365 Business Central and the system generates it without complaint, but the customer never receives it and it doesn't show up at the SII, Chile's tax authority. Nobody had loaded the folios. Nobody knew who was supposed to deal with the rejection notice sitting in the company inbox, either. The accountant goes back to the old system "just for this week."
That story repeats whenever a Dynamics 365 Business Central project in Chile treats electronic invoicing as something to sort out at the end. It isn't a detail. Business Central can run in Chile and meet SII requirements, but the tax layer doesn't come out of the box. It arrives through a partner localization. This guide covers what the product includes, what that localization adds (electronic tax documents, CAF folios, the Purchase and Sales Register) and what to test before go-live.
If you're still evaluating the product, start with what Business Central is and when it makes sense. Here we assume you've picked it or are close.
What Microsoft ships and what it doesn't
In its official country availability table (updated August 2026), Microsoft lists Chile as available, localized by partners on top of the international (W1) version. Chilean environments use the CL code and their data sits in the Azure Brazil geography.
Partner localization means Microsoft doesn't deliver a Chilean version of its own. W1 handles accounting, purchasing, sales, inventory, banking and financial reporting, but it has no idea what a RUT, a folio or an electronic stamp is. Apps published on Microsoft Marketplace add that on top of Business Central.
There's more than one Chilean localization on the Marketplace. For reference, one of them says it covers tax setup (RUT, line of business, branches, folios), issuing electronic tax documents (DTEs) with their XML and tracking SII responses, taxes and withholdings such as VAT, professional-fee withholding and ILA, and reports like tax books and the eight-column tax balance. Every app has a different scope, so get the feature list in writing.
What the SII requires and who handles it
It helps to split the obligations apart when sizing a localization. This table lists the common ones and where they usually land in a Business Central project:
| SII obligation | What it involves | Where it's handled |
|---|---|---|
| Issuing DTEs | Taxable and exempt invoices, credit and debit notes, dispatch guides, purchase and export invoices, depending on the business | Localization app, sometimes alongside an e-invoicing provider |
| Folios and electronic stamp | The SII authorizes folio ranges in a file called a CAF, used to stamp each document | Localization app; the company downloads the CAF from sii.cl |
| Receiving supplier DTEs | Receiving the XML, recording it, and accepting or disputing it on time | Localization app or an integration with the exchange mailbox |
| Purchase and Sales Register (RCV) | Filled automatically with DTEs received by the SII; completed and validated for the VAT proposal | SII portal, reconciled against the ERP |
| Taxes and withholdings | VAT, withholding on professional-fee receipts, specific taxes | Business Central tax setup plus the localization |
| Tax reporting | Tax balance, supporting reports for Form 29 and annual sworn statements | Localization and custom reports |
Two official facts tend to surprise people in design workshops. First, CAFs authorized since July 2018 expire six months after authorization, so requesting a huge range "so we never worry about it" doesn't work; someone has to watch available folios and their expiry dates. Second, the Purchase and Sales Register replaced the obligation to keep purchase and sales books. If a proposal talks about "generating the books" the way it was done before the RCV, ask what exactly you get. It might be a useful reconciliation report, or a feature you no longer need.
Questions to ask before you sign
In our comparison with SAP Business One we noted that localization drives timelines. In practice, these questions expose the biggest differences between proposals:
- Which localization app will be used, who publishes it, and how long it has been on the Marketplace.
- Which DTE types it covers today and which are "in development." Ask to see an exempt invoice, a voiding credit note and a dispatch guide issued in a test environment.
- Whether the app signs and sends to the SII directly or relies on an external e-invoicing provider, and what each one charges per document or per month.
- How CAFs are loaded and what alert fires when folios are running low or about to expire.
- How supplier documents are processed and who handles disputes within the legal deadline.
- What happens when the SII changes a format or schema: who notices, how fast the update ships, and whether it costs extra.
- Whether the localization keeps up with Business Central online updates.
That last one matters more than it looks. According to Microsoft Learn, Business Central online gets two major updates a year, in April and October, plus minor updates in the other months. Every localization app has to keep pace. A publisher that falls behind leaves you with an environment that can't update, or with invoicing on hold.
How to test e-invoicing before go-live
The classic mistake is testing accounting in great detail and leaving invoicing for the last week. Treat it as its own workstream, with its own environment and an owner:
- A Business Central sandbox with the localization installed, separate from production, where test documents get issued before any real folios are touched.
- A set of real business cases: the customer with line discounts, the exempt sale, the dispatch guide invoiced later, the partial credit note, the USD invoice if you export.
- Tests for receiving real supplier invoices, not just issuing your own.
- A named owner for SII rejections, with a written procedure to correct and resend.
- A trial reconciliation between what the Purchase and Sales Register shows on sii.cl and what the ERP recorded for the same period.
That last item saves the most pain at the first month-end close. If the ERP and the SII register don't match in testing, they won't match at the first real close either.
One more thing to look at here. DTEs contain customer data, including individuals, stored in the ERP and at the e-invoicing provider. Set role-based permissions and review your contracts with each provider; our article on Law 21.719 and GDPR explains why.
When a partner localization is enough (and when it isn't)
For most trading and services SMBs, a mature Marketplace localization covers what's needed: issuing and receiving DTEs, folios, common taxes and supporting reports. The project work is configuring it properly and testing it with real cases.
Some scenarios need more: industries with specific taxes like alcohol or fuel, high retail receipt volumes, e-commerce platforms or marketplaces that issue documents on their own, or groups with several companies and consolidation. Those usually call for custom development or an extra integration, and you want to know that during the assessment, not halfway through the project.
Frequently asked questions
Does Business Central have an official Microsoft localization for Chile?
No. Microsoft lists Chile as available with a partner localization built on the international (W1) version. Chilean tax features come from apps published on Microsoft Marketplace.
Can Business Central issue electronic invoices accepted by the SII?
Yes, with a Chilean localization app that generates and stamps DTEs, on its own or together with an e-invoicing provider. Confirm which document types it covers before you sign.
Are purchase and sales books still mandatory?
According to the SII, the Purchase and Sales Register replaced the obligation to keep those books. Your ERP should let you reconcile its records with what the SII shows.
Let's implement Business Central with invoicing sorted from day one
At Disrupsoft we implement Dynamics 365 in stages: a diagnosis of your sales and finance processes, rollout of the critical areas first, integration with Microsoft 365, Power Platform and other systems, and training with ongoing support. If you're evaluating Dynamics 365 Business Central in Chile and want to reach go-live with electronic invoicing already tested, let's talk about your case.
