Colombia

Updated e-invoicing obligations We predicted in our last post that Columbia’s new government would initiate a number of fiscal-related reforms in the country. It is now evident that the new government is acting decisively in respect of e-invoicing practices in the country. In March 2023, the government issued Decree 442, which introduced some changes to the country’s e-invoicing regulations. These updates can be summarised below:

• A requirement that e-commerce platforms provide services allowing users to issue and deliver e-invoices
• Extending the scope of the e-invoicing system to include all electronic tax-related documents
• The introduction of a new definition of electronic equivalent document
• Specific modifications to the electronic supporting document with respect to transactions with taxpayers not required to issue invoices

You can read more about e-invoicing in Columbia on our country-specific page here.

Proposed tax reform changes A new government took place in Colombia from August 2022 and perhaps inevitably, taxation will feature heavily in the proposed new agenda.  The new government has already touted several new fiscal-related proposals.   In 2021, Colombians were able to enjoy a ‘three-day holiday’ from VAT, where certain products were exempt from VAT. However, a repeat appears to be under threat from the new government as it looks to abolish the three-day reprieve.  Amongst others, more social fiscal measures are proposed, including establishing a new tax for sugary drinks and certain processed foods; an increase in carbon tax emissions and the establishment of new environmental taxes, serving a distinctly new societal agenda.  Tungsten Network is monitoring developments in Latin America and is committed to cascading meaningful e-invoicing developments in the country. 

Digital Signature and New Technical Rules

Columbia has now adopted the mandatory inclusion of electronic signatures in invoices. This mechanism has always been in place but has only recently become mandatory.

This will help to ensure the authenticity, integrity and non-repudiation of the invoice.

The requirement to include the registered address for foreign sales has been annulled.

Furthermore, the “Supporting Document 1.0 Technical Annex” has been introduced for Colombian taxpayers making purchases from suppliers that are not obliged to issue invoices. In order to support costs incurred or expenses with such suppliers, the purchaser must support ‘electronic’ supporting documentation i.e. an electronic invoice or equivalent documents, for validation by the National Tax and Customs Directorate (DIAN). This allows the transactions to be tracked and costs, deductions and deductible taxes to be monitored.