Another country within Latin America mandates new tax and electronic invoicing policies. Colombia becomes the eight country to follow the e-invoicing trends of other countries, like Peru and Chile. The goal of the mandate is to reduce tax evasion issues from 22% to 0% by companies that conduct business in the country. The pilot phase, which started on January 1, 2016 and will go live within 6 months, includes 30 of the largest companies in the consumer products industry. Here are some high level highlights in Decree 2242, as announced by Colombia’s tax authority, DIAN:
- XML will be the standard format.
- Digital signature is required to authenticate the integrity of the invoice.
- A testing environment will be used for e-invoicing adoption.
- Before sending an invoice, receivables must be approved by DIAN.
- The invoice must be validated and its status must be communicated to the supplier.
- Invoices must be sent to DIAN within 48 hours. If errors exist, corrections must be made within 48 hours as well.
Why should businesses in Colombia install an e-invoicing system? By matching invoices to purchase orders and receipts, they can automatically verify that goods have been delivered and have been billed appropriately. If the invoice is correct, it can be approved for payment instantaneously. If not, it can be bounced back for corrections, verification and resubmission. The key to this convenience is choosing the right technology that improves the business process and guarantees on-time payment rate. When finding an e-invoicing provider, businesses need to consider the above requirements. They need a solution that will provide all their business needs as they evolve. Providing e-invoicing solutions for over a decade, Appterra addresses critical requirements for e-invoicing such as digital signatures, EDI, government mandated systems, VAT tax validation, commercial data fields, and long term archiving of invoices. With servers deployed on a market by market basis, its applications can reside in the actual region or county to enhance compliance. Sign up for our weekly blog summary and newsletter!