In the latest iteration of Latin American countries following the example set by Brazil’s e-invoicing regulations, Colombia is expected to introduce its own version of the legislation this year.
The Dirección de Impuestos y Aduanas Nacionales (DIAN), Colombia’s version of the Internal Revenue Service, cites several benefits of making such a move, including:
1) Strengthening the country’s competitiveness in the region
2) Helping small- and medium-sized businesses gain access to improved financing mechanisms and increased liquidity
3) Allowing companies to achieve reductions in the costs associated with internal invoicing processes
However, it’s important to keep in mind that the main reason Colombia is passing this legislation is to improve its own tax and fiscal status, not to help individual business. As we’ve seen through our years of managing compliance for the world’s largest corporations, many corporations are just now beginning to realize the financing and processing improvements that government standardization presents.
In coordination with the Ministerio de Hacienda y Credito Publico (treasury department) and the Ministerio de industria, comercio y turismo (department of travel, commerce and tourism), the DIAN is expected to introduce its e-invoicing law – Decreto de masificacion de la facture electronica –this year.
We expect to see draft legislation at the end of May and testing and adjustments for the next six months. The goal 2015 goal set by the DIAN is to mandate at least 830 companies with the new electronic invoicing model.
Although the exact date and details are still unknown and will depend on the success of the government’s program testing, it’s important plan ahead for Colombia’s impending enactment.