E-invoice: Invoicing obligation for non-VAT taxpayers

Individuals who carry out VAT taxed operations and remain in the ordinary regime will be exempted from invoicing, if they meet the requirements to operate as not responsible for VAT. If they are transferred to SIMPLE they will be obliged to invoice electronically.

Individuals when carrying out VAT taxable operations in Colombia, will have to decide whether these will be carried out as “VAT responsible” or as “not responsible for VAT” (former simplified VAT regime; see the new code of responsibility 49 in the RUT and paragraph 3 of article 437 of the Tax Statute -ET-). In the case of unliquidated successions, they will always be liable as “VAT taxpayers”.

Additionally, as regards their income tax liability, these same types of individuals must also decide whether they will be taxpayers under the ordinary regime or whether they will voluntarily transfer to the simple regime. In the case of non-resident individuals and unliquidated successions, they will always be taxpayers under the ordinary regime.

Obligation to issue sales invoices when operating as non VAT taxpayers

Those individuals who carry out operations taxed with VAT, but who decide to operate as “not liable for VAT” would face the following situation regarding their obligation to issue a sales invoice or equivalent document:

a. If they operate as not liable for VAT and at the same time remain in the ordinary income tax regime, they would not be obliged to issue sales invoice or equivalent document, as contemplated in article 616-2 of the ET. If they decide to invoice voluntarily, they could do so by issuing sales invoices on paper, by computer, electronic invoicing or documents equivalent to invoices.

b. If they operate as not responsible for VAT, but at the same time decided to transfer to the simple regime, by the mere fact of appearing as SIMPLE taxpayers, they are obliged to issue electronic invoice with prior validation or equivalent document. In addition, if they decide to issue equivalent documents, but the buyer requests them to change such document for an electronic invoice, they should be able to do it automatically.

Source: Actualícese