On March 6 the Ministry of Finance published the final version of the decree regulating the implementation of e-invoicing nationwide. The decree regulates sections 18 and 20 of the Economic Growth Law (2010-2019), which was passed in December 2019. The decree had been in public consultation in January 2020. The Executive announced that this regulation simplifies the Colombian tax system, and it is already in force. 

The document establishes that: 

• Subjects under obligation. They are obliged to issue a sales invoice and/or equivalent document for all operations performed by those responsible for sales tax (VAT):
  • Those responsible for national consumption tax;
  • Taxpayers registered for the unified tax under the SIMPLE taxation system.

• Non-obligated subjects. Subjects who are not obliged to issue a sales invoice and/or equivalent document are:
  • Banks, financial corporations and financing companies;
  • Savings and loan cooperatives, higher level cooperative bodies;
  • Service providers from abroad, without a tax residence in Colombia for the provision of electronic or digital services.

Other relevant aspects of the document are:

• SIMPLE regime. The subjects that opt for the unified tax under the SIMPLE tax system will have a period of two (2) months starting from the registration of the mentioned system in the Single Tax Registry (RUT), to adopt the e-invoice system.

• Penalties. Those subjects who, while under the obligation to invoice, do not invoice and issue documents other than the sales invoice and/or equivalent document, such as pre-invoice, collection account, pre-account or similar, shall be subject to the sanction of closure or closure of the business establishment or office.

• Documents created using the POS system. The equivalent documents generated by cash registers using a POS system do not entitle the purchaser to a VAT discount, nor to any costs or deductions in income tax and other complementary taxes.