Invoicing and NCF in the Dominican Republic: a basic guide for your business

If you run a business in the Dominican Republic—a corner store, a salon, a workshop, or an online shop—sooner or later a customer is going to ask you for "an invoice with a tax receipt." And that's where a lot of entrepreneurs get stuck: what exactly is an NCF? How do you calculate ITBIS? What do you have to report to the DGII? The good news is that, once you grasp the basics, invoicing correctly is simpler than it looks. In this guide we walk you through the fundamentals with examples in RD$, no legal jargon, and clear, actionable steps.

What is the NCF and why does your business need it?

NCF stands for Número de Comprobante Fiscal (Tax Receipt Number). It's an alphanumeric sequence that the Directorate General of Internal Taxes (DGII) authorizes your business to print on every invoice. Put simply: it's the "stamp" that gives your sale its tax validity.

Why does it matter? Because without a valid NCF, your customer can't use that invoice to back up an expense or report it. And for you, issuing proper receipts is part of operating formally, building trust, and avoiding headaches with the DGII down the road.

A typical tax receipt includes details such as the issuer's RNC or ID number, the date, an itemized list of what was sold, the amount, the ITBIS applied and, of course, the NCF. Each sequence the DGII authorizes comes with a range and an expiration date, so it's worth keeping track of how many receipts you have left.

The most common types of NCF

Not all receipts are the same. Depending on who you're selling to and why, you'll use one type or another. These are the ones you'll handle most often as a small business:

• Fiscal Credit Invoice: used when you sell to another company or to a customer with an RNC who needs to back up the expense and the ITBIS. It's the most common in business-to-business (B2B) transactions.
• Consumer Invoice: for sales to the final consumer—the person buying for their own use who won't be deducting taxes. It's the one businesses selling directly to the public issue most often.
• Credit Note: when you need to refund money, correct an invoice, or apply a discount after it has been issued.
• Debit Note: when you need to charge an additional amount on an invoice you've already issued.
• Receipts for Minor Expenses and other special cases: there are additional types for specific situations (special regimes, government, exports, and so on).

The rule of thumb: if your customer has an RNC and asks for it, they usually need a Fiscal Credit invoice; if they're a member of the general public, it's almost always a Consumer invoice. When in doubt, ask the customer whether they're going to use the invoice to deduct expenses.

ITBIS at 18%: how to calculate it without slipping up

ITBIS (the tax on the transfer of industrialized goods and services) is the Dominican Republic's consumption tax, with a general rate of 18%. Some products are exempt or have reduced rates, so it's worth confirming the status of what you sell directly with the DGII.

Let's see how it works in practice. Imagine you sell a taxable service for RD$1,000:

1. Service amount (base): RD$1,000
2. ITBIS 18%: RD$1,000 × 0.18 = RD$180
3. Total to charge the customer: RD$1,000 + RD$180 = RD$1,180

That RD$180 in ITBIS isn't yours: you collect it on behalf of the State and later declare it. That's why it's so important to set it aside—mentally and in your books—from the very start.

One scenario that trips a lot of people up: when the price already "includes" ITBIS. If you sell something for RD$1,180 with ITBIS included and you want to know how much is the base and how much is tax, you divide by 1.18:

• Base: RD$1,180 ÷ 1.18 = RD$1,000
• ITBIS included: RD$1,180 − RD$1,000 = RD$180

Mastering this calculation keeps you from quietly losing margin and helps you price your products with a clear head.

Your basic obligations with the DGII: the 606 and 607 reports

This is where the NCF really comes into its own. The DGII requires taxpayers to report their purchases and sales periodically. Two of the formats you'll hear about most are:

• Format 606 — Purchases: here you report your suppliers' receipts—in other words, what your business bought and the expenses you back up with invoices (merchandise, services, rent, and so on).
• Format 607 — Sales: here you report the receipts your business issued—that is, all your sales along with their NCF, amount, and ITBIS.

In plain terms: 606 is what you buy, 607 is what you sell. These reports are usually filed monthly and form the basis for your ITBIS return. Keeping them current from the start saves you the chaos of having to piece everything together at month's end from a pile of loose scraps of paper.

Since the dates, exact formats, and requirements can change, it's best to always verify the current details and deadlines on the official DGII portal or with your accountant. This guide gives you the big picture; only update the specific details using an official source.

Best practices so you don't get lost

1. Keep all your purchase receipts. Every invoice with an NCF you receive from a supplier is an expense you can back up in your 606.
2. Number and file your sales in order. Don't skip or repeat NCFs; keep track of the sequences the DGII authorized for you.
3. Set the ITBIS aside from day one. Treat it as money that isn't yours, so it doesn't catch you off guard when it's time to declare.
4. Reconcile every month. Match what you invoiced against what came into your cash drawer or bank before you generate your reports.

How to invoice more easily with FinanzasPro

Doing all of this by hand—in a notebook or a makeshift Excel sheet—works fine at first, but as your business grows it turns into a job of its own. This is where a digital tool takes the weight off your shoulders. FinanzasPro's NCF invoicing module lets you issue invoices with the correct receipt type, automatically calculate ITBIS at 18%, and keep tabs on your sequences so you don't run out without realizing it.

And when the time comes to comply with the DGII, the platform helps you organize the information for your 606 and 607 reports, so that month-end close stops being a last-minute nightmare. Instead of hunting for lost invoices, you have your sales and purchases neatly in one place.

In summary

Invoicing with an NCF isn't an optional formality: it's the foundation for operating formally, earning trust, and keeping your taxes in order. Remember the essentials: the NCF gives your invoices validity, there are different types depending on who you're selling to, the general ITBIS rate is 18% and you collect it on behalf of the State, and the DGII expects you to report your purchases (606) and sales (607). And whenever you're unsure about exact deadlines or requirements, always confirm with the DGII or your accountant.

If you're ready to leave the notebook and the by-hand calculations behind, try FinanzasPro for free and start invoicing, calculating your ITBIS, and preparing your DGII reports all in one place—on the web or in the app. Your business—and your peace of mind at month's end—will thank you for it.