At a Glance: Compliance Changes in Colombia, Peru and Ecuador

Scott Lewin
August 29, 2016

This blog was last updated on August 2, 2021

Though they are three of the newest countries in Latin America to require e-invoicing and tax reporting, compliance in Colombia, Peru and Ecuador is already full of complexities. Listen to our webinar replay to learn about the unique requirements, forthcoming changes and best practices in each of these countries. Here’s a sneak peek.

Colombia
Announced in April 2016, Colombia’s e-invoicing pilot phase is halfway complete. With 58 participating {{cta(‘2ab5683b-630b-4dbb-a73c-3cfcaae0ebfd’,’justifyleft’)}}companies from a variety of industries, the pilot program is testing the technologies and processes involved in the requirements from Colombia’s tax authority, the DIAN, before they are rolled out to other companies. As the public launch of e-invoicing in Colombia approaches, companies must prepare for the impact to accounts receivable, accounts payable and reporting.

Peru
One of the newest countries to introduce e-invoicing – libros reports were due for the first time in January 2016 – Peru is already making waves with updated mandates. Though e-invoicing just became standard for the majority of companies this year, the country has added new electronic reports for the largest corporate taxpayers – 10+ accounting reports covering sales, purchases and inventory – as well as new initiatives designed to keep tax payments from foreign invoices within the country. These retention and perception tax changes can have major cash flow implications.

Ecuador
Ecuador began requiring e-invoicing in 2015, but in an unprecedented move in Latin America, is now moving its compliance initiatives to an offline schema. Instead of authorizing electronic documents in real-time, the government now provides a 24-hour cushion, allowing companies to be more efficient in their shipping processes. While this new process changes internal timelines and operations, it does not change the details required, contingencies needed or necessity of 100% accuracy to avoid audits and fines.

Despite a common goal – maximum tax collections and revenue – these three countries show the individual complexities involved in e-invoicing and tax reporting initiatives. To learn more about the unique requirements in each of these countries, as well as how to prepare, listen to webinar replay

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Scott Lewin

Gain timely insight and important up to the minute information about the current legislative changes in Latin America, including Brazil Nota Fiscal, Mexico CFDI, Argentina AFIP and Chile DTE. Learn how these changes affect your operations, your finances and also your Information Technology teams.
Share this post

form 1099-k reporting
North America Tax Information Reporting
November 25, 2024
Form 1099-K Reporting: What TPSOs Should Know

This blog was last updated on November 25, 2024 As tax year 2024 approaches, third-party settlement organizations (TPSOs) are keeping a close watch on IRS guidance regarding their obligations under the IRS’s Form 1099-K reporting requirements. Recent changes to the 1099-K reporting threshold, coupled with delayed enforcement and conflicting guidance, have left many TPSOs uncertain […]

2025 tax filing season
North America Tax Information Reporting
November 21, 2024
Top 5 FAQs to Prepare for the 2025 Tax Filing Season

This blog was last updated on November 21, 2024 While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Sales Tax vs. Use Tax, Explained. Who Reports What, and When?

This blog was last updated on November 19, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
2025 NAIC Bond Project – The Insurer’s Guide

This blog was last updated on November 14, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]