How electronic invoicing works in Colombia

Electronic invoicing in Colombia aims to modernize and digitize the tax system, ensuring greater efficiency, transparency, and fiscal oversight. This system, regulated by the National Tax and Customs Directorate (DIAN), is continually evolving to optimize tax administration and ensure electronic compliance with tax obligations.

Evolution of electronic invoicing in Colombia

Colombia was one of the first countries in Latin America to recognize the legal validity of electronic invoices, equating them with paper invoices as early as 1995. However, a key milestone came in 2015 when DIAN implemented the Electronic Invoicing System (SFE), with the goal of modernizing and digitizing tax management.

Since then, the system has undergone constant evolution, incorporating new tax documents and improving its technical and regulatory processes. To support gradual adoption by taxpayers, DIAN established a phased implementation timeline, thereby strengthening the digital transformation of Colombia’s tax system.

Electronic invoicing system (SFE) in Colombia

Colombia’s Electronic Invoicing System (SFE) operates under a pre-validation model, in which all electronic tax documents must first be sent to DIAN for review and approval. Only after this validation can they be delivered by the issuer to the final recipient.

This system guarantees the legality of operations and is designed to facilitate tax compliance, improve fiscal control, and reduce paper usage. Documents covered by the SFE include:

• Electronic sales invoice
• Validation report for paper invoices used due to technological failures
• Electronic payroll support document
• Support document for acquisitions from non-obligated parties
• Registration of electronic sales invoices as securities (RADIAN)
• Electronic equivalent documents

Electronic sales invoice: scope and obligated taxpayers

The electronic sales invoice is the most widely used tax document within Colombia’s electronic invoicing system. Its issuance is mandatory for a broad range of taxpayers, according to DIAN’s regulations. Below are the groups obligated to comply:

• Legal entities that sell goods and/or provides services.
• Individuals with gross income exceeding 3,500 UVT from the sale of goods and/or services.
• Government contractors with income over 4,000 UVT.
• Individuals earning less than 3,500 UVT who:
  • Operate more than one business establishment
  • Exploit intangible assets
  • Are customs users
• Make deposits or investments exceeding 3,500 UVT
• Taxpayers under the Simple Taxation Regime (RST)

This invoice type includes variants such as the electronic credit invoice, debit invoice, and export invoice, adapting to diverse business scenarios and supporting integration into the country's digital tax system.

Electronic payroll: what is it and how is it issued

The electronic payroll support document is part of Colombia’s electronic invoicing system and is mandatory for companies that declare income or VAT and make payments arising from labor or legal relationships. This document supports the deduction of costs, expenses, or deductible taxes before the DIAN.

The document must be generated using the company's payroll software or BPO provider. The information is converted into electronic documents, digitally signed, and submitted to DIAN for its validation. Once validated, it is integrated into internal systems with its graphical representation and automatically sent to employees. In case of errors, adjustment notes must be issued following the same process.

Per current regulations, these documents must be issued monthly and transmitted within the first 10 calendar days of the following month. Payroll consolidation for annual submission is not permitted.

RADIAN: Registration of electronic invoices as securities

DIAN implemented the RADIAN platform to register electronic sales invoices as securities, a crucial requirement for their use in factoring operations. To qualify, invoices must meet specific technical and commercial requirements and be both registered and validated in RADIAN.

This system allows companies to manage all events related to their invoices electronically, such as acknowledgments of receipt or acceptance, which must be digitally signed. Only upon completing these steps can an invoice be considered a security.

To operate on RADIAN, businesses must use software authorized by DIAN. EDICOM, a certified technology provider, offers an integrated solution that automates the generation, transmission, and event registration within RADIAN, ensuring regulatory compliance and facilitating access to electronic factoring.

Electronic equivalent documents: what are they and when they apply

Electronic equivalent documents are transactional proof used in specific cases where a traditional electronic sales invoice is not required, such as when the supplier is not obligated to issue invoices. These documents must also be generated via software and validated by DIAN in accordance with established technical standards.

A common example is the POS receipt, typically used in physical retail points. Other types include documents for transportation services, entertainment, gaming, tolls, and public utilities, among others.

DIAN established a gradual implementation schedule in 2024 for these documents, with deadlines varying based on the document type and taxpayer category. This roadmap supported system adoption and ensured an orderly transition to full digitalization of tax documents.

Resolution 000119/2024: Changes to electronic invoicing

DIAN issued Resolution 000119 of 2024, which introduced significant modifications to Colombia’s electronic invoicing system, amending various aspects of Resolution 000165 of 2023. Key changes include:

• Equivalence option: Taxpayers may now choose to issue either an electronic sales invoice or an electronic equivalent document, depending on the nature of the transaction.
• Implementation deadline extensions: A three-month extension was granted for the electronic issuance of certain equivalent documents, including those for public utilities, passenger transport, and account statements.
• Airline tickets: A maximum of 48 hours was established, from the time of booking in a GDS system, to issue the corresponding electronic equivalent document for air passenger tickets.

RIPS in Healthcare: Mandatory Support for Electronic Invoicing in Colombia

As of October 1, 2024, the healthcare sector in Colombia must integrate the Individual Records of Health Service Provision (RIPS) as mandatory support for the Electronic Sales Invoice (FEV). This measure applies to both public and private entities and aims to unify clinical records, invoices, and reports to the Ministry of Health under a single validated electronic system.

The RIPS are detailed reports that must be generated by all healthcare providers and include information on consultations, procedures, diagnoses, medications, and care dates. They are essential for the General System of Social Security in Health (SGSSS) to manage, oversee, and validate the quality of the services provided.

With the enforcement of Resolution 2275, key changes have been introduced:

• RIPS must be generated in JSON format with additional structured fields.
• They are validated through the Ministry of Health's Single Validation Mechanism (MUV).
• Each report includes a Unique Validation Code (CUV) as the official receipt.

EDICOM: DIAN-authorized service provider for electronic invoicing in Colombia

EDICOM is a DIAN-authorized service provider for issuing electronic invoices in Colombia. This accreditation confirms that the company meets all technical, legal, and financial requirements as outlined in Decree 2242 of 2015.

EDICOM complies with several conditions, including: maintaining an up-to-date Tax Identification Number (RUT), being registered under the general VAT regime, holding an ISO 27001 certification for information security, and possessing the required equity and assets thresholds. Its systems use DIAN’s standardized XML format, authorized numbering, digital signatures, and guarantee invoice authenticity and integrity through a Unique Electronic Invoice Code (CUFE).

Thanks to this certification, EDICOM offers a comprehensive solution for managing electronic documents—aligned not only with Colombian tax requirements but also with international regulations—enabling companies to operate efficiently and securely across markets while ensuring full traceability and tax compliance.