Colombian DIAN Electronic Invoicing Overview

February 15, 2016 Karen Marchione

On November 24, 2015, the Colombia DIAN (tax authority) announced in Decree 2242 that electronic invoicing will be mandated in 2016. Similar to mandates already in place in Mexico and Chile, for example, this is a way for Colombia to combat tax evasion with the goal of reducing tax evasion from 22% to zero by companies conducting business in Colombia. In February 2016, Colombia released their technical specifications for electronic invoicing.  Similar to Brazil and Mexico, Colombia’s mandate is complex and sophisticated, and it is critical that multinationals plan ahead for an inevitable 2016 rollout to minimize financial and operational risks. 

As you evaluate solutions, it is important to keep in mind the real cost of compliance is not just the one-time implementation cost. The real cost is the day-to-day support efforts and ongoing change management, especially if you are rolling out a global or regional instance of your ERP system to Colombia. 

Below is an overview of the announcement by the Colombia DIAN:

Colombia Electronic Invoicing & Reporting Requirements

  • Standard format: The DIAN will utilize an XML standard, details of which will be finalized in the next few months
  • Signature: Electronic Invoices must have a digital signature to authenticate the integrity of the invoice
  • Certification Process: The DIAN will create a testing environment for the adoption of electronic invoicing
  • Accounts Receivables: Receivables must be approved by the DIAN before sending an invoice
  • Accounts Payables: When receiving an invoice, it must be validated and the status of the invoice must be communicated to the supplier
  • Validation: There is a 48-hour window to send electronic invoices to the DIAN.  In the event that the invoice has an issue, corrections must be made within 48 hours
  • Reports: Auxiliary “Libros” reports will be required for sales and purchases

Download Colombia mandate checklist

How Invoiceware International Simplifies for Compliance in Colombia and throughout Latin America:

  • One platform for all compliance requirements in Colombia: E-Invoicing, Receivables, Payables, Logistics, and Libros Reporting.
  • Hybrid Cloud Service – The agility of the Cloud delivered directly into native ERP compliance monitors. Eliminate mandatory ERP upgrades and reduce maintenance costs by upwards of 80% annually.
  • A Fixed, Predictable cost– Understand the cost to of implementation and how to  maintain compliance every year. Never have to find emergency budget for an upgrade again.
  • Multi-Lingual Enterprise Support – 24x7x365 in English, Portuguese and Spanish for the entire end-to-end process. One phone call for any issue rather than search and rescue missions involving multiple departments.
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