Colombia Begins Trial Period for New Electronic Invoicing System

Colombia has officially started the trial period for its new Electronic Invoicing system. The new reporting policy announced by the local statutory institution, the Dirección de Impuestos y Aduana Nacionales (DIAN), anticipates that companies operating in Colombia should start making the required changes in order to avoid possible fines in the future.

The Electronic Invoicing model defined in the Decree 2242 (November 2015) and Resolution 19 (February 2016) aims to spread the use of electronic accounting in Colombia by facilitating interactions between those who generate electronic invoices and those who acquire goods or services. We’ve highlighted the changes that come into effect through Decree 2242 below:

  • DIAN is using a standard XML format
  • Every electronic invoice must come with a digital signature to verify invoice authenticity
  • The DIAN is creating a testing interface for the electronic invoice adoption
  • The company’s Account Receivables need to be approved by DIAN prior to sending an invoice
  • For Account Payables, invoices received should be validated and their status communicated to suppliers
  • There’s a 48 hour window to send electronic invoices to the DIAN for validation In the event of errors, modifications need to happen within 48 hours
  • Subledger Reports are required for sales and purchases

Colombia is not an isolated situation. Other countries in Latin America like Mexico , Brazil and Chile are putting in place different tax policies that promote the use of electronic invoices to promote transparency and increase governmental visibility into the operations of the private sector.

Our development team is currently working on a solution designed to help our clients to make the required adjustments in their E-Business Suite instance to address these new requirements in Colombia. For more information about our services, feel free to contact us.