E-Invoicing in Colombia: A General Guide
Colombia has been a pioneer in electronic invoicing in Latin America, with the government recognizing its validity since 1995. The National Tax and Customs Directorate (DIAN) launched the Electronic Invoicing System (SFE) in 2015. This system has continuously evolved, incorporating new tax documents and implementing mandatory taxpayer adoption schedules.
The Electronic Invoicing System (SFE)
Colombia's SFE operates on a pre-validation model. Before issuance, electronic invoices and other tax documents must be submitted to the DIAN for validation. Once approved, the issuer can send the document to the client.
The SFE includes various tax documents, including:
- Electronic sales invoices, mandatory for legal entities and individuals exceeding specific income thresholds, electronic sales invoices include credit, debit, and export invoices.
- Reports for validating paper invoices
- Electronic Payroll Support Documents are mandatory for individuals who require them for tax purposes.
- Support Documents for Acquisitions from non-obligated parties
- Registration of Electronic Sales Invoices as a Negotiable Instrument (RADIAN)
- Equivalent documents, like tickets from cash registers with P.O.S. systems
New Draft Resolution to Amend Resolution 0165 of 2023
The DIAN has proposed changes to Resolution 0165 of 2023, influencing several aspects of electronic invoicing:
- Electronic Equivalent Document for Airline Tickets: A 48-hour generation limit from the reservation.
- Intermunicipal Transportation Documents: Temporary physical tickets allowed, with XML data transmission to the DIAN within 48 hours.
- Contingency for P.O.S. Issuers: Paper sales documents permitted during contingencies, with subsequent electronic transmission.
- Paper Billing for Taxpayers without Internet: Allowed in specific areas with limited Internet access, subject to certain conditions.
- Graphical Representation: Flexibility in displaying invoice information in different languages and currencies.
- Equivalent Document for Domestic Public Services: Paper-based equivalent documents allowed in specific areas with low internet penetration.
- Extension for the Electronic Equivalent Document “The Extract”: Mandatory issuance postponed until November 1, 2024.
- Additional Invoice Information: Requirement to report additional details in electronic sales invoices, particularly for foreign currency transactions.
The draft resolution was open for public consultation until July 18, 2024.
New Developments: Resolution 558
The Ministry of Health and Social Protection issued Resolution 558, extending the implementation deadline for the reception and validation platform for the FEV in Health and RIPS until October 1, 2024.
Implementation Calendar
The DIAN has established a phased implementation calendar for electronic invoicing, with deadlines for various taxpayer groups and specific document types.
- Group 1 (Large Taxpayers) – May 1, 2024
- Group 2 (Income tax filers who are not Large Taxpayers) – June 1, 2024
- Group 3 (Non-income tax filers and entities not classified as mentioned) – July 1, 2024
Dates for documents:
- Public utilities: August 1, 2024
- Passenger transportation tickets: August 1, 2024
- Bank statements: August 1, 2024
- Passenger air transport tickets: September 1, 2024
- Gambling instruments: September 1, 2024
- Local gambling documents: September 1, 2024
- Tolls: October 1, 2024
- Securities exchange receipts: October 1, 2024
- Agricultural exchange receipts: October 1, 2024
- Event admission tickets: November 1, 2024
- Cinema tickets: November 1, 2024
Requirements to Issue Electronic Invoices
To issue electronic invoices, businesses require:
- Authorization from the DIAN
- A digital certificate
- Electronic invoicing software from a DIAN-authorized provider
Benefits for Taxpayer Companies
Electronic invoicing in Colombia offers numerous advantages to businesses, such as:
- Cost reduction
- Increased productivity
- Improved efficiency and accuracy
- Shorter payment times
- Enhanced security
- Secure document storage
A well-implemented e-invoicing system can offer businesses even more advantages beyond compliance. Companies can boost efficiency and modernize their processes by automating processes, reducing manual errors, and optimizing workflows. Partnering with a certified e-invoicing provider with a proven track record is crucial to maximize these benefits. Their expertise and experience can ensure a smooth transition and ongoing support.
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There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
