All VAT-registered entities established in Colombia must issue electronic invoices for virtually all transactions (B2B, B2C, B2G). Non-established foreign companies must comply if VAT-registered or required to invoice locally. Exports are covered by special electronic export invoices. Imports/purchases from non-invoicing suppliers (including foreign) are captured via buyer-issued “support documents” (documento soporte) transmitted to DIAN. Result: nearly 100% of taxable transactions are recorded electronically.

Implementation Timeline (main milestones)

• 1995: Legal recognition of e-invoices
• 2016: Pilot program
• Jan 2019: Mandatory for large taxpayers
• Nov 2020: Extended to all VAT-registered taxpayers (including B2G)
• 2021: Law 2155 broadened scope to all tax-relevant electronic documents
• 2022–2023: POS receipts and other equivalents phased in; large retailers from Feb 2023, all taxpayers by mid-2023
• Nov 2023: Resolution 000165/2023 consolidated rules, introduced Annex 1.9 (invoices) & 1.0 (equivalents)
• Feb–Aug 2024: Staggered go-live for electronic equivalents (POS receipts, utility bills, transport/airline tickets, tolls, cinema/event tickets, etc.)
• May 2024: Full implementation of latest schemas for all taxpayers
• Apr 2025: Resolution 000202/2025 refined purchaser data requirements
• System remains in continuous evolution.

Format

• Standard invoices & equivalents: XML UBL 2.1-based, per DIAN technical annexes
• Mandatory digital signature (embedded in XML)
• Human-readable PDF with QR code + CUFE (invoices) or CUDE (equivalents) for verification

Required Data

• Full issuer & buyer identification (name, NIT/cedula)
• Consecutive numbering (DIAN pre-authorised range), date/time, payment terms
• Detailed line items (description, quantity, price, discounts, tax status)
• Complete tax breakdown (VAT, INC, ICA, exemptions/exclusions)
• Totals in COP, payment method
• CUFE/CUDE + QR code + digital signature
• All fields mandatory; omissions invalidate the document.

Transmission & Clearance (Real-Time Model)

• Pre-clearance: Invoice must be sent to DIAN and validated before it is legally issued and delivered to buyer
• Validation usually within seconds; DIAN returns approval + timestamp
• No validation = document considered not issued
• Contingency: If DIAN system down → issue without validation but transmit within 48 hours of restoration
• Equivalent documents generally real-time; some support documents may have short periodic deadlines

Periodic Reporting

No separate monthly invoice listing required; each validated e-invoice/equivalent is the report. Payroll and certain summaries have their own monthly deadlines.

Penalties

• Fines: up to 1% of invoice value (max 950 UVT) for errors; up to 5% of transaction for non-issuance; severe/repeated breaches up to 7,500 UVT
• Business closure: 3+ days (or pay 5% of prior month’s gross revenue instead); repeat offences longer
• Tax consequences: Invalid invoice → buyer loses VAT credit/cost deduction
• Increased audits and enforcement 2023–2025

Archiving

5 years from 1 Jan of the following year. Original signed XML (plus PDF) must be kept with integrity. Storage abroad permitted if retrievable for DIAN.

Pre-filled VAT Returns

DIAN offers “Declaración Sugerida de IVA” (suggested VAT return) pre-populated from e-invoice data. Taxpayer reviews, adjusts if needed, and files. Optional but widely used; taxpayer remains fully responsible.

This shortened version retains every substantive rule, date, penalty, technical requirement, and consequence from the original while cutting length by ≈60%.