New Technical Requirements for E-Invoicing in Colombia Go Into Effect
The National Directorate of Taxes and Customs (Dirección de Impuestos y Aduanas Nacionales, or DIAN) Resolution 42 of 5th May on invoicing in Colombia establishes new technical requirements for e-invoicing.
The resolution names which companies are required to invoice electronically, establishes a schedule to move towards the widespread use of e-invoicing, and stipulates which invoicing types must become electronic.
Decree 358 of 5th March, 2020 establishes which taxpayers will be required to invoice electronically:
- Persons and enterprises subject to sales tax (VAT)
- Taxpayers subject to the national consumption tax
- Practitioners of private or independent professions and those who provide essential services to them
- Merchants, importers, service providers and vendors to end consumers
- Typographers and lithographers not subject to sales tax
- Taxpayers registered with the simplified tax system
The resolution establishes an e-invoicing rollout calendar defining which taxpayer groups are required to invoice electronically (based on the classifications below) and sets start dates and deadlines for taxpayers to implement e-invoicing. All taxpayer groups are required to begin invoicing electronically in 2020.
- Individuals and enterprises subject to taxation according to their principal business activity registered with the Colombian Tax Registry (Registro Único Tributario, or RUT).
- Other taxpayers whose activities do not correspond to an International Standard Industrial Classification (ISIC).
- Implementation schedule for new taxpayers required to issue electronic sales invoices after this resolution goes into effect. The deadline to begin issuing electronic sales invoices is two months from the date of obligation to issue sales invoices or equivalent documents.
Resolution 42 addresses the transition from point-of-sale (POS) invoicing to electronic invoicing. POS documents, i.e. receipts generated at the point of sale when goods or services are paid for using specialized software, which previously were accepted by DIAN, will no longer be deductible as of 1st November, 2020.
The number of documents deemed equivalent to sales invoices will be reduced to 13: These must be e-documents by 30th June, 2021.
Equivalent document types:
- POS cash register receipts
- Cinema tickets
- Passenger transport receipts
- Bank statements
- Passenger air travel receipts and tickets
- Receipts from gambling establishments
- Tickets and receipts for all types of gambling and games of chance
- Toll receipts
- Proof of settlement of operations issued by the stock exchange
- Documents for agricultural commodities exchange transactions and other commodity transactions
- Bills issued by public utilities
- Tickets for entry to any form of public entertainment
- Equivalent electronic documents
The aim of the Colombian government is to make e-invoicing the standard method of invoicing. With this resolution, the government is establishing new taxpayer requirements. The maximum allowable percentage of non-electronic invoicing will be gradually reduced from 30 percent in 2020 to 20 percent in 2021 to 10 percent in 2022.
New developments made to e-invoicing requirements in Colombia
- Electronic sales invoices will have consecutive IDs with the number, the range, the date, and the period of validity of the numbers, as authorized by the DIAN.
- Date and time of validation.
- Must include: registry number, total number of line items quantity of each, units of measurement, item descriptions, and unique codes identifying the goods or services.
- Method of payment: cash or credit. If credit, the payment period must be indicated.
- Sales tax (VAT) withholding status: self-withholding of income tax, or large and/or unified taxpayer under the simple taxation system (Impuesto unificado bajo el régimen simple de tributación, known as SIMPLE).
- Type of tax: sales tax (VAT), national consumption tax, or national plastic bag tax, as well as the applicable rate for the goods and/or services.
- Internet address of the DIAN’s special administrative unit which procides information on electronic sales invoices with a QR code, as seen in the Technical Annex for Electronic Sales Invoices (Anexo técnico de factura electrónica de venta).
- Name and surname (or company name and tax identification number) of the e-invoicing application manufacturer, as well as the name of the application and its supplier if available.
Technical changes that taxpayers should familiarize themselves with were introduced in Annex 1.7 . They go into effect on 4th June. Taxpayers that fail to comply with the new requirements in the beginning of the implementation period will receive a warning notification. However, as of 1st August, failure to comply with the changes will be grounds for invoice rejection.
- Delivery to multiple purchasers or a consortium. The “consortium” option has been removed and replaced with “interlocutors”.
- VAT-exempt goods: This field is used to indicate that goods are VAT-exempt.
- AIU services: In Spanish: administración, imprevistos y utilidad; in English: administration, contingencies and utility. I This field is used to indicate the type of service, the purpose of the invoice, and its value.
- Recipient as end consumer: New data for identification has been added.
- Negative amounts are not allowed. Defines the method for rounding and an error tolerance of ±2.00. The DIAN will reject negative invoices.
- Taxpayer type: Assigns a type to the party issuing the invoice.
- Date of provision of goods or service. The date of provision of goods and/or services must be indicated. The document must be accepted within three working days of this date. In cases where the purchaser does not explicitly accept the invoice within three working days, the issuer may assume tacit consent within ten days of issuance.
- Payment due date. If the payment method is credit, the due date must be indicated.
The list of values has also been updated:
- Reference to non-tax documents
- Types of taxes
- Responsibilities and obligations (as of 1st August)
- Type of operations with different field values: standard, AIU or mandates (as of 1st August)
What’s new in “factoring”
Important changes have been approved for the practice of “factoring”, a common accounts receivable financing system based on the advance payment of invoices to provide liquidity.
The e-invoicing registry known as RADIAN was created with the approval of the tax authority. RADIAN will be the only source of e-invoices considered valid for commercial transactions. The platform will manage e-invoices considered as securities, i.e. invoices validated by the DIAN.
The system allows users to view and track documents.
Is your company ready to meet Colombian e-invoicing requirements?
The international e-invoicing platform developed by EDICOM guarantees not only that e-invoices are sent and received in accordance with the specifications of the countries of origin and destination, but also that the system is always kept up to date on the latest technical and legislative developments to ensure compliance with applicable regulations.