These are aspects that taxpayers must take into account as of July 13at which time the obligations to issue new electronic documents will come into force as deductibility requirements for the registration of invoices as a security for taxpayers who acquire goods or services.
A crucial date on which buyers, who accessed goods and services with a term for payment, must electronically issue the acknowledgment of receipt of the sales invoice and acknowledgment of receipt of goods and services by using the service arranged by the entity, or that of a third technology provider.
This new regulation is part of the legislation issued to regulate electronic invoicing in Colombia, a registration modality implemented by the National Government in 2019 that has generated benefits for entities and the tax administration, and that now aims to streamline the funding of billing operations. purchase and sale of goods and services.
Experts assure that there are tangible changes that are evident, such as the traceability of the billing process: “The receipt of the invoice and of goods and services is the moment in which companies will see the importance of issuing documents electronically and thus have proof of compliance with the requirement of accepting the invoice as a security. Thus, there will be an effective negotiation and collection instrument that will allow flexibility and agility in business,” he stressed. Alexandra Durán, tax advisory partner at EY Colombia.
In order not to incur penalties, it is crucial that you take into account the following factors raised by experts in the Electronic Billing and Radian forum in order to align with the new regulations that govern as of July 13.
(Related: Electronic invoice ‘acknowledgment of receipt’ comes into effect)
1. The crossing of information
“The tax audit of organizations is rapidly changing. It went from being a manual review process, to one in which the DIAN can compare the transactions and their tax effects in real time, project some taxpayers’ tax returns and/or cross them shortly after their filing, all through technological processes applied to the information of the electronic documents transmitted by the companies”, explained Leonardo Mora, tax partner for EY Colombia.
The expert adds that all organizations, large and small, must assess whether they really have the appropriate tools to respond quickly and in a timely manner to the tax administration.
2. Understanding of technical, tax and legal regulations
It is necessary for companies to know and analyze the regulations that impact the electronic invoicing process in order to avoid confusion, sanctions and evaluate the best way to implement the different obligations of the electronic ecosystem within their organizations.
In addition, the action of contrasting existing legislation with the company’s strategic roadmap is useful for directing resources and efforts in a coordinated manner.
“The regulatory framework for electronic invoicing is not only made up of the fiscal and technical provisions issued by the DIAN, but also of other legal regulations that complement it, such as the Code of Commerce and regulatory standards for the proper interpretation of the electronic invoice as a security and the interaction with the Radian,” highlighted Alexandra Durán.
In addition, the expert pointed out that it is essential to take into account and know Decree 358 of 200, Decree 1154 of 2020, resolution 42 of 2020 and resolution 0085 of 2022, to understand how to operate, what path to take and determine the procedure to follow that allows a successful and useful implementation of the electronic invoicing ecosystem in Colombia.
(You may be interested in: Who must declare income in Colombia? Check the conditions and avoid fines)
3. Technology as an essential ally
Another point to keep in mind is the technological change that produced electronic invoicing. This process generated a modification of the corporate vision in small and large companies regarding the issuance of invoices.
electronic invoicing it has allowed to generate synergies in real time between the issuer and the recipient of the invoice since from the moment the information is sent until its reception by the supplier, who will be able to open an XML file on his PC, obtain and validate the required information about the transaction.
In this regard, Leonardo Mora, tax partner for EY Colombia, indicates that since the implementation of the electronic invoice there has been a change in the handling of information for tax purposes, allowing companies to have knowledge and control of much of the information that the tax administration is aware of their transactions, which, without a doubt, is changing the dynamics of tax compliance in our country.
The correct implementation of these changes will avoid inefficiencies in tax matters, such as losing the deduction of an expense or the possibility of taking a VAT paid as deductible for not having the appropriate supports, increasing the payment of income tax or VAT.
But even more importantly, it will allow you to control the tax impact of your transactions with which you will be able to identify tax planning alternatives and be better prepared for inspections by the tax authority.