Electronic invoicing: service providers from abroad

Service providers from abroad that render services to persons or companies located in Colombia are considered liable for VAT as long as the services are taxed with such tax.

These service providers are not obliged to issue an invoice.

In the following video, our speaker Diego Guevara Madrid, prominent tax expert and leader of tax research at Actualícese, clarifies whether service providers from abroad, such as Netflix or Spotify, are required to issue electronic invoices before the Dian.

Since 2018, service providers from abroad that provide services to persons or entities located in Colombia are considered liable for VAT as long as the services are taxed with such tax.

However, the fourth paragraph of paragraph 2 of article 437 of the Tax Statute -ET-, added by article 4 of Law 2010 of 2019, states that this type of service providers, who do not have tax residence in the national territory, are not obliged to issue electronic invoices or equivalent documents for the provision of electronic or digital services.

However, paragraph 2 of article 7 of Resolution 000042 of 2020 establishes that the supporting document of the operations carried out with service providers from abroad, for the rendering of electronic or digital services, will correspond to the new supporting document in acquisitions made to subjects not obliged to invoice, indicated in article 1.6.1.1.4.12 of Decree 1625 of 2016 and article 55 of Resolution 000042 of 2020.

Source: Actualize