Colombian VAT number contains 9 digits and 1 check digit (e.g., 012345678-A).
The standard VAT rate in Colombia is 19%, with a reduced rate of 5%, and some services that are exempt from Colombian VAT, like existential foodstuffs.
All businesses with Mexican VAT number must submit periodic VAT reports and payments.
All businesses with Colombian VAT number (domestic established companies) must submit periodic payments.
VAT filings and payments, as well as returns, are submitted every two months or quarterly, depending on the previous year’s earnings.
For non-established companies in Colombia (foreign business entities), VAT returns must be submitted every two months.
In case of the late filing of VAT returns and payments, the Colombian government prescribed the 5% penalty of the value of the VAT due.
Following Art. 617. of Colombian law, requirements of the sales invoices are as follows:
All taxable persons (business entities established in Colombia obligated to pay VAT) have to use the obligatory e-invoicing system platform to send and receive invoices from 2019. Also, this means that all information will be reported in real-time to Colombian Tax Authorities (Dirección de Impuestos y Aduanas Nacionales – DIAN).
There are a couple of requirements that need to be met in order to operate fully complied with Colombian Tax Law:
According to the new invoicing model, Colombian Tax Authorities (DIAN) must validate an invoice before a supplier sends it to a customer. All e-invoices must be in the XML (UBL 2.1) format. All invoices are validated in real-time by Colombian Tax Authorities. Without confirmation of the sale from DIAN, the seller cannot charge the buyer for the goods or services sold.
How does it work?
Who is affected by this obligation?
Electronic invoices must be submitted for all goods or services sold by taxable persons established in Colombia.
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