E-invoicing in Colombia

E-invoicing in Colombia is mandatory for all business-to-government (B2G), business-to-business (B2B), and business-to-consumer transactions (B2C). All suppliers must issue e-invoices, and it’s compulsory for all buyers – including government entities – to receive them.

Colombia’s government agency responsible for financial regulation and tax collection is the National Tax and Customs Directorate (DIAN). As part of Colombia’s preclearance model, DIAN must validate all e-invoices prior to issuance to ensure they meet technical and legal requirements.

DIAN requires ecommerce platforms to make provisions for vendors using their platforms to be able to issue e-invoices and for customers to receive e-invoices. The burden is not on the platform.

There are a number of exemptions from the e-invoicing mandate in Colombia. These include: foreign digital service providers, financial institutions, taxpayers under the simplified regime, certain public transport services, and retailers of petroleum fuels and compressed natural gas.

Businesses operating in Colombia must obtain authorisation from DIAN to issue e-invoices. E-invoices must be issued in XML format via e-invoicing software from a DIAN-authorised provider (or DIAN’s free portal, if issued by small businesses). The National Accreditation Body of Colombia (ONAC) certifies suppliers as technological service providers (PST). Businesses must also create a PDF version of each e-invoice that includes a QR Code. An e-invoice must also contain:

• Seller tax identification number

• Buyer tax identification number

• Amount of VAT paid

• Total value of transactions

• Means of payment

• Description of goods and/or services, and prices

• Digital signature of the issuer

• Date and time of issuance

• Clave Única de Facturación (CUFE) code, a unique e-invoice number issued by DIAN

  
  

Businesses must archive e-invoices for five years.

Colombia’s preclearance model for e-invoicing allows for real-time monitoring of transactions by DIAN.

Businesses that fail to meet e-invoicing requirements can be fined up to 1% of the invoiced amount. Not issuing e-invoices can result in the closure of the business for up to 30 days.