Colombia

Colombia

In 2018, Colombia`s economy recovered from the petroleum-price-related weakness of the previous years. The acceptance of the country into the OECD and NATO in May as well as the peace agreement with the FARC guerilla sent additional positive signals to foreign investors. However, due to the presidential elections in June which were won by Iván Duque it remains unclear which path Colombia will take. Given his pro-business approach there will likely be tax reductions to incentivize foreign investors. Due to stable economic climate and a continuously sinking inflation rate the population`s consumption rate is likely to increase which (German) companies can profit from. However, ranking only 96 out of 180 countries on Transparency International`s Transparency Perception Index in 2017 Colombia still has a significant need to catch up in terms of fighting corruption. This is supposed to be achieved through new Compliance regulations.

 

e-Invoicing

Starting January 1st of 2019, all companies that pay VAT or Consumption Tax (Impoconsumo) have to use the e-Invoicing system. This change affects approximately 800.000 companies and will be monitored by the Colombia tax authority DIAN. The reform`s goal is to decrease tax evasion, increase Compliance as well as reduce costs in the private and public sector.
In the introductory year 2018, already 50.000 companies were requested to use the system and throughout the year the DIAN will publish further lists with companies that it deems high-risk. This affects mostly big producing businesses as well as those that are engaging in the financial or tax sector. After receiving the DIAN`s request a company has three month to implement the new e-Invoicing system. With a voluntary adaption, a company gains three more month as a testing phase wherefore this option can be recommended in order to grant a smooth implementation. More...

Colombia: Apply online for Electronic Signature Instrument

With Resolution 000022 of 2019, the Colombian tax authority DIAN states that users can now…

Colombia: Sanctions for failed Submission of the Exógena Report

The Exógena Report (exogenous information) is a set of data on the operations carried out…

Colombia: New e-Invoicing Rules

On April 29th, 2019, the Colombian tax authority DIAN published its Resolution 000030 which lays…

Colombia changes to the billing model for e-invoicing

With the UBL 2.1 e-invoicing mandate of the Colombian tax authority DIAN, the country switches…

The Costs of doing Taxes in Latin America

In OECD countries, it takes a company 159 hours on average to do the taxes.…

Compliance in Colombia: Corporate and Commercial Obligations for 2019

Which compliance obligations do companies residing in Colombia have to fulfill in 2019?   This…

CbC Changes in Brazil and Colombia

In November 2018, Brazil and Colombia introduced regulatory changes with view to Country-by-Country Reporting (CbC).…

Colombia: New Tax Law in Effect

Since 1 January 2019, a new tax law has been in place in Colombia. It…

Colombia`s Congress passes watered-down Tax Reform

On Wednesday 19th, 2018, the Colombian Congress has passed a weakened version of the proposed…

New e-Invoicing Models in LATAM in 2019

Multiple Latin American countries such as Guatemala, Panama or Paraguay develop their own e-Invoicing models.…

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