Colombia - Rules Governing the Electronic Equivalent Document Revised

Colombia’s tax authorities (DIAN) made changes to the e-invoicing rules in July 2024 that affect the use of electronic “equivalent documents.”

The e-invoicing rules require that commercial transactions be supported by e-invoices or electronic equivalent documents that fulfil the conditions established by the DIAN. Electronic equivalent documents replace hard copy documentation for transactions that do not require a sales invoice and are used to support a deduction of costs for income tax purposes and the deduction of input VAT related to specific transactions, including the following:

Statements issued by entities required to issue invoices, such as trust companies, collective investment funds, private capital funds, foreign investment funds, mutual investment funds, securities funds, pension and severance funds;
Voucher for the settlement of stock exchange transactions;
Document issued for the collection of tolls;
Passenger transportation tickets; and
Tickets for public events.

The July resolution provides that:

Taxpayers may issue an electronic equivalent document in another language and currency or issue it in Colombian pesos and Spanish with equivalents in another language and currency.
Public utility services, statements and public passenger transport tickets must be submitted electronically by 1 November 2024.
Equivalent documents for the sale of air transportation tickets must be generated, transmitted and validated in accordance with the Global Distribution System within 48 hours.

The DIAN is strategically leveraging technology to monitor commercial transactions, which involves the widespread use of electronic reporting for all types of transactions, not just invoiced transactions. This proactive approach underscores the DIAN's commitment to enhancing transparency and efficiency in tax reporting through cutting-edge technological solutions.

Martha Reyes
Jose Domingo Palomino Perez
BDO in Colombia