e-invoicing

Colombia’s tax authority, the DIAN, has introduced changes to its e-invoicing model

With lessons learned from the first iteration of e-invoicing in Colombia, the DIAN is implementing a clearance model similar to those in Brazil, Mexico and other LATAM countries.

The new model requires organisations currently invoicing electronically through SAP to implement the new model by 2 November 2019. Companies implementing e-invoicing for the first time should follow the guidance published by the DIAN in Resolución 000020, which requires compliance beginning on 1 August 2019 for many organisations.

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The new mandate will employ a clearance model of e-invoicing, requiring real-time pre-validation. In that model, the supplier has to validate each invoice with the tax authority before it can ship goods to a client.

Inbound invoicing is now a requirement.

A new XML schema requires more than 200 validations, with new catalogues implemented to standardise data, and seven new acknowledgements.

Mandate Quick Facts

The mandate reduces VAT evasion by 50 percent, equal to 8 billion pesos (USD 2.8 billion)
The mandate has produced more than three million electronic documents worth more than 40 billion pesos (USD 13 billion)
For more details on the evolution and requirements of the mandate, download the guide on e-invoicing in Colombia

Mandate Rollout Dates

With the latest UBL 2.1 and pre-validation mandate published by the DIAN, dates for the implementation of clearance e-invoicing are as follows:

Companies that have not implemented e-invoicing have to go live between 1 August 2019 – 1 August 2020 according to resolution 020.
Companies currently invoicing electronically have to go live by 2 November 2019.

Penalties

Companies that do not comply with the e-invoicing mandate are subject to fines of up to 15,000 UVT, set based on the following criteria:

5% of the invoice amount for which the required information was not provided
4% of the invoice amount for information submitted in the wrong format
3% of the invoice amount for late submissions

Free Guide

Electronic Invoicing & Reporting Requirements in Colombia

For more details on the evolution and requirements of the mandate, download the guide on e-invoicing in Colombia.

How Sovos Helps Companies Stay Compliant with Colombia E-invoicing

The Sovos e-invoicing compliance solution serves as a true one-stop-shop for managing all e-invoicing compliance obligations in Colombia and across the globe. Combining disparate local solutions in countries around the world is both costly and risky. The Sovos SAP Framework Solution is tailored to manage specific e-invoicing scenarios in Colombia as well as handling requirements in other countries around the world. It allows companies to invoice seamlessly within SAP and also monitors both AR and AP compliance processes, end-to-end, all within SAP.

Certified DIAN technology provider

Sovos has earned certification from the DIAN. Companies doing business in Colombia must use a certified technology provider for e-invoicing functions. View certification

Certified for Namespace and SAP with a path to S/4HANA

The Sovos embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth.

Successful participant in Colombia pilot program

Sovos successfully implemented Colombia e-invoicing with large multinationals, including Coca-Cola, Kellogg, and S.C. Johnson.

Feature list

Sovos e-invoicing compliance solutions localised to market-specific requirements and scenarios

The embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth. Sovos provides global reach with in-house regulatory expertise for both pre-clearance and post-audit transactional invoicing. When tax authorities introduce new or modify existing mandates, Sovos keeps track so SAP customers stay compliant, enjoy peace of mind and avoid business disruptions.