On top of all the professional accounting and auditing services it typically provides, Crowe Colombia has been working with clients all year to help them prepare for new electronic invoicing laws as the country shifts its invoicing and tax unit rules.
Since June 1, all of point of sale (POS) invoices that exceed 212,000 Colombian pesos issued by supermarkets, restaurants, shops, and other small businesses must be accompanied by an electronic invoice. While the changes have been well publicized since last year, Crowe began warning its clients of the impending change well before it went into force and assisted most of its larger taxpaying clients through the first two waves of implementation in February and April.
“Now, all of them must take this rule into account for their income statement next year, since from this date on, only expenses formally recorded through the electronic invoice document can be deducted,” said Guillermo Berrío, partner of business process outsourcing at Crowe Colombia.
The phase in of the rule started in February and was outlined through Resolución no. 001092, issued by the National Directorate of Taxes and Customs (DIAN) last year to push a broader acceptance and adoption of the electronic invoicing system in the country.
Specifically, the new rule specifies that “the sale of the good and/or provision of the service that is registered in it does not exceed five (5) units of tax value (UVT) for each POS equivalent document that is issued, excluding the amount of any tax.” The five units of tax are currently valued at 212,000 pesos, or roughly $50 USD at the current exchange rate.
The change also forces businesses to adjust their paperwork come tax season to reflect the 5 UVT stipulation for every issuance of “a bill for a cash register with a POS system,” and it forces those creating invoices in accordance to the resolution to issue an electronic sale invoice “[in] cases where the sale and/or provision of services exceeds five (5) UVTs.”
In the past, the new electronic invoicing push has led to new adjustments from both businesses and taxpayers in order to adopt the new system. For example, taxpayers who will try to use the regular POS receipts from businesses who do not use electronic invoicing need to create e-documents in order to take advantage of any tax deduction in the future.