As of January 2019, all companies that pay VAT in Colombia will be required to comply with mandatory e-invoicing. All Colombian companies will have to have to use the obligatory e-invoicing system platform to send and receive invoices, with all information going through DIAN, the National Colombian Tax Authority (Dirección de Impuestos y Aduanas Nacionales).
What are the benefits and advantages?
There are various benefits and advantages of this system, including:
- Reduced risk of lost documentation
- Efficient document management
- Improved traceability and security of operations
- Savings in printing and storage
Companies should take into account the following e-invoicing requirements:
- The e-invoice must be sent to the customer and to DIAN within 48 hours of signing the e-invoice.
- The e-signature can be provided by a certified provider or by the company itself.
- All e-invoices must be in XML format.
How will it affect your company?
DIAN will offer a free online service in order to facilitate the issuance of the electronic invoices for micro and small-sized companies.
Micro Companies: If a Colombia company has less than 10 employees and with a total asset value of less than 500 legal minimum salaries (COP$390,621,000) they will be eligible for this service.
Small Companies: If a Colombia company has between 11 and 50 employees and with a total asset value of between 501 and less than 5000 legal minimum salaries (COP$3,906,210,000) they will be eligible for this service.
Please note that companies who do not fall into the above categories will be required to contract an external supplier who will provide the interface between a company’s accounting system and DIAN.
Time to take action
This new e-invoicing system will affect all companies that pay VAT in Colombia; starting in less than three months. Local Colombian company and leading back-office service provider, Biz Latin Hub, strongly recommends that all local businesses start to prepare for this new system given that all companies must pass both testing and production phases before beginning e-voicing.