The Colombian government, in recent years, has tried to implement various taxation systems, more in line with current needs, in order to reduce corruption and evasion in the collection and payment of taxes, always present in Colombian society. It seems that the answer was found in the aforementioned Electronic Invoice.
One of the systems aimed at curbing tax evasion is the implementation of electronic invoicing. Through Decree 2242 of 2015, the government regulated the entire framework regarding electronic billing; based on this, several questions arise, which we intend to answer throughout this article.
The purpose of this article is to provide a brief introduction to this topic and the most important obligations that must be met following the enactment of Decree 2242, for which we will address the following questions:
What is electronic invoicing?
According to Decree 2242, the electronic invoice “is the document that supports sales transactions of goods and/or services and that operationally takes place through computer systems and/or information technology solutions (…).”
What are the requirements for the electronic invoice?
The electronic invoice must comply with certain requirements to be validly generated, which are mentioned below:
- Use the standard electronic XML generation format established by the DIAN.
- Carry consecutive numbering authorized by the DIAN.
- Comply with the requirements set forth in article 617 of the Tax Statute.
- Include digital or electronic signature.
- Include the Unique Electronic Invoice Code.
Likewise, the party obliged to invoice electronically may do so using its own technological tools or may also contract the service with third parties. In the event that it is decided to contract with a third party, this must be authorized by the DIAN as indicated in Article 12 of Decree 2242 of 2015.
Who is obliged to invoice electronically?
Companies or individuals who voluntarily decided to implement the electronic invoicing system, as established in Decree 1929 of 2007, had until June 29, 2018, but if they issued more than three million invoices between January 1 and October 31, 2017, the deadline will be extended until September 29, 2018.
As of January 1, 2019, all taxpayers obliged to declare and pay VAT and consumption tax must issue electronic invoices under the terms established in Decree 2242 of 2015.
What are the penalties for failing to comply with electronic invoicing obligations?
In the event of non-compliance with electronic invoicing obligations, the merchant—whether a natural or legal person—may be sanctioned with the temporary closure of their commercial establishment. In cases of repeated non-compliance, the closure may be permanent.
This concludes our brief introduction to electronic invoicing, highlighting what we consider to be some of the most important issues for the general public. It is essential to keep in mind that there is an extensive body of regulations governing this matter, which includes a wide variety of obligations and details that the party required to invoice must consider when issuing their billing.
We hope that these new regulations achieve the objectives set by the national government and significantly reduce tax evasion and fraud.
Legal Team
