The Colombian tax administration (DIAN) issued a new resolution 000010/2018 on February 6th that requires large taxpayers to issue and report electronic invoices by September 1, 2018. This resolution was widely expected in Colombia since the DIAN already issued a draft of it in the last quarter in 2017, where it asked for feedback from the taxpayers, software developers and other members of the business community.
To help you understand what this means to you, we have prepared some of the most common questions we are getting from our clients.
Q: Who is mandated to comply with this Resolution?
A: According to Art. 1, of the above resolution, all taxpayers that have been qualified as large taxpayers under the provisions of Resolution 0076/2016.
Q: When are the large taxpayers required to start issuing electronic invoices?
A: According to Art. 6 of the resolution, the effective deadline for complying with this mandate is September 1, 2018.
Q: Can the large taxpayers listed in the resolution start invoicing electronically before the deadline?
A: Yes, they can. But for that they will be required to have the corresponding approval from the DIAN.
Q: Does this Resolution for large taxpayers affects those taxpayers that are mandated to issue and report electronic invoices based on Resolution 072/2017?
A: Resolution 072/2017 established that all taxpayers that in the previous years voluntarily requested invoice number ranges, will be required to start to issue and report to the DIAN their electronic invoices by June 29, 2018 or September 29, 2018, depending on the number of invoices they issue per month. That schedule for compliance remains unaffected.
Q: What happens if a taxpayer that was mandated to start issuing electronic invoices in June 29, based on Resolution 0072/2017 is also listed as a large taxpayer under Resolution 000010? Will the deadline be extended to September 1, 2018?
A: No. Large taxpayers that were required to comply with the electronic invoicing based on Resolution 072/2017 will be required to start issuing and reporting electronic invoices on June 29, 2018 regardless of their status as large taxpayers. In other words, the resolution 000010/2018 does not apply to those taxpayers as they are already subject comply based on a previous mandate.
Q: A summary of who is affected in Colombia:
A: Group 1: June 29, 2018 – Companies that requested numbering ranges (folios) for eInvoicing during the last five years and invoice less than 3M invoices per month.
Group 2: September 1, 2018 – Large taxpayer defined by the DIAN in resolution 076.
Group 3: September 29, 2018 – Companies that requested numbering ranges (folios) for eInvoicing during the last five years and generate more than 3M invoices per month.
Group 4: Jan 1, 2019 – All taxpayers who declare and pay VAT in Colombia.
Sovos advises all companies with operations in Colombia to contact their local teams to understand which affected group they fall into and how they should prepare. Companies need to act now, as Colombia has accelerated the mandate and everyone must be live with an eInvoicing solution at the latest Jan 1, 2019.
Learn More and Contact us today to schedule an advisory call with one of our LATAM eInvoicing experts in Colombia.