Businesses Operating in Colombia
How do businesses comply with Colombia's electronic invoicing mandate?
Colombia operates a mandatory electronic invoicing system regulated by DIAN (Direccion de Impuestos y Aduanas Nacionales). All merchants and service providers must issue electronic invoices. E-invoices must be validated by a DIAN-authorized provider (HV - Habilitado Validador) or directly by DIAN before delivery to buyers. The system covers invoices, credit notes, and debit notes.
How does DIAN validation work for Colombian e-invoices?
Colombian e-invoice validation involves DIAN or an authorized validation provider:
- Format: UBL 2.1 XML with DIAN-specific extensions
- Signature: Digital signature using certificate from DIAN-authorized certificate authority
- Pre-validation: Submit to authorized HV provider or DIAN before delivery
- CUFE: DIAN assigns a unique fiscal invoice code (CUFE) to validated invoices
- QR code: QR code with CUFE included on the invoice document
- Buyer notification: Validated invoice delivered to buyer; buyer has 2 days to accept or reject
- Real-time to DIAN: DIAN receives all invoice data in near-real-time via HV providers
Frequently Asked Questions
- What is Colombia's IVA rate?
- Colombia's IVA (Impuesto sobre las Ventas) standard rate is 19 percent. A reduced rate of 5 percent applies to certain goods and services including air tickets, agricultural inputs, and some insurance premiums. Zero-rating applies to basic food items, medicines, and exports. Excluded supplies (not subject to IVA) include financial services and some agricultural goods.
- What is a DIAN habilitado validador?
- A habilitado validador (HV) is a DIAN-authorized third-party provider that validates electronic invoices on behalf of businesses. HV providers offer technical services to connect issuers' billing systems to DIAN, manage the XML generation, digital signing, and pre-validation process, and provide validation status management. Businesses can also connect directly to DIAN without an HV provider but this requires more technical capability.