Colombia E-Invoicing Resolution Changes Expected Requirements

January 8, 2018 Ramon Frias

A few days ago, the Colombian Tax Administration (DIAN) enacted Resolution 000072 of December 29, 2017 which details the requirements for taxpayers to issue and report electronic invoices. While an e-Invoicing resolution was fully expected, the contents of the resolution (as it relates to timing) is markedly different from what was proposed by the DIAN just a few months ago. Specifically, the earlier proposal would have placed the e-Invoicing requirement on all “large taxpayers” as defined by Resolution 000076 of 2016. However, the new Resolution places the requirement on a select list of companies previously identified over the last five years. The DIAN deferred providing guidance on which “large taxpayers” will be required to comply, but only for a short while.

As to when the requirement will be imposed on the identified taxpayers, the Resolution states that it will become effective on the third month after the date in which the Resolution was published. Translated, this means that companies that issue less than 3 million invoices per year will be subject to the E-invoicing requirement on March 29, 2018. Those that issue more than 3 million invoices will have until June 29 to comply. While Colombian law gives impacted taxpayers some time to perfect their compliance approach, significant penalties for non-compliance are not far off. Later this month, the DIAN will publish a list that fully clarifies which companies are subject to this deadline.

As to the large taxpayers, the DIAN states that during the month of January they plan on publishing a Resolution specifying when they will be required to start issuing electronic invoicing. For any organization wondering if they will fall into this classification, note that Resolution 000076 includes an extensive list of impacted (3,602) companies. Sovos is working closely with the DIAN to confirm a number of details related to this mandate will post additional information to this forum as it becomes available.

The complete text of the resolution can be found at the following link: http://www.dian.gov.co/descargas/normatividad/2017/Resoluciones/Resolucion_000072_29_Dic_2017.pdf

The Colombian Tax Administration (DIAN) enacted Resolution 000072 on December 29, 2017 which details a requirement for taxpayers to issue and report electronic invoices. This resolution is fundamentally different from what was proposed by the DIAN in November for public consultation.

Specifically, the earlier proposal would have placed the E-Invoicing requirement on all “large taxpayers” as defined by Resolution 000076 of 2016. However, the new decree places the requirement on a select (but extremely large) list of companies previously identified over the last five years.

Resolution 000072 further establishes that the E-Invoicing requirement will become effective on the third month after the date in which the Resolution was published. However, based on vagaries in the wording of the Resolution, it’s not entirely clear when the effective date actually arrives. Sovos is working closely with the DIAN to confirm this critical detail and will post additional information to this forum as it becomes available.

The complete text of the resolution can be found at the following link: http://www.dian.gov.co/descargas/normatividad/2017/Resoluciones/Resolucion_000072_29_Dic_2017.pdf

About the Author

Ramon Frias

As Tax Counsel, Ramon is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a JD from the Universidad Autonoma de Santo Domingo.Ramon has written many essays about tax administration, and for one of them won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos Compliance, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.

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