Colombia e-invoice VAT reporting - CUFE

Colombia has operated a pre-clearance VAT invoice regime, CUFE, since 2019 under a phased introduction. This includes tax payers submitting electronic invoices to the National Directorate of Taxes and Customs ('DIAN') for real-time approval prior to submission to tax payers. This follows similar regimes in Brazil, Mexico and Italy.

Until mid-2019, the reporting model required tax payers to submit invoices to DIAN within 24 hours for their issuance. Under the new, billing model version, the tax payer must submit the e-invoice in XML format for prior validation by DIAN. Until this is granted, which is done live, the e-invoice is not valid for settlement or tax declarations, and goods may not be shipped.

Submitted invoices will be in XML format, including the company's digital signature, a e-invoice unique code ('CUFE') and QR code. Invoices can be submitted to DIAN in one of three ways:

  1. Using the free DIAN upload portal
  2. Outsource complete e-invoice creation and submissions to a DIAN authorised e-invoicing provider for digital certificate and e-signature issuance services
  3. Implement systems and control internalyl to produce secure e-invoices

Once confirmation is received from DIAN, the supplier may send the approved invoice to their customer in XML and PDF format.

The new billing model is being phased in over the next two years. Businesses are being selected for mandatory pre-clearance according to their size and industry codes. This process should complete by the end of 2020.

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