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: New information on the Economic Development Act

The Act to Promote Economic Growth (Proyecto de Ley No. 278 de 2019) was introduced…

Colombia: Bill for Economic Growth Promotion

On October 16, 2019, the Colombian Constitutional Court ruled that the Tax Reform Act of…

Colombia: What to expect from SARLAFT?

SARLAFT stands for Asset Laundering and Terrorist Financing Risk Management System and describes a tool…

Colombia: New Customs Statute

Through Decree 1165 of July 2, 2019, the National Government issued the new customs statute…

Colombia: e-Invoicing Options and Obligations

With Resolution 000030 of April 29, Colombia`s tax authority DIAN regulated the conditions, terms and…

International Approaches to taxing the Digital Economy

New technologies fuel the trend of digitization and change the economy by: Decoupling it from…

Colombia: New company classification offers special opportunities for MSMEs

On 5 June 2019, Decree 957 was adopted in Colombia, which redefines the criteria for…

Colombia: Apply online for Electronic Signature Instrument

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

Colombia: Changes to 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…