Electronic Invoicing

Three Days without VAT in Colombia in 2021

Three Days without VAT in Colombia

The Special Administrative Unit of the DIAN has published a resolution where it looks to regulate the special contingency related to the electronic sales invoice in the Days without VAT in 2021.

Days without VAT in Colombia in 2021

The Colombian government announced that the days without VAT will continue in 2021.

Days without VAT are those where purchases for certain products are exempt from VAT in Colombia. These days are determined by decree according to Article 37 of law 2155 of September 14 2021.

When will the days without VAT take place in Colombia in 2021?

The Colombian government determined that the three days without VAT will take place in October, November and December.

  • 28 October  2021
  • 19 November de 2021
  • 3 December 2021

Requirements to exempt sales from VAT

Article 39 of Law 2155 September 14 2021 establishes that electronic invoices with pre-validation where the final consumer is identified must be issued during the days without VAT.

The invoice must be issued on the same day that the purchase was made, except in the case of online purchases which will be exempt until 11:59 P.M the next day.

New Payment method during the “days without VAT”

Cash payments will be accepted this year. Last year the VAT discount only applied to purchases bought through electronic mediums.

The Colombian government wants to incentivize consumption for households with less purchasing power, particularly those who do not have cards or bank accounts to conduct purchases through electronic mediums, and do not have access to credit.

This measure will enable the most underprivilidged families to purchase articles they need by taking advantage of the VAT exemption during the three days without VAT.

Special contingency in the electronic sales invoice during the days without VAT 2021

The sale of products covered by this initiative must be backed by an electronic invoice with prevalidation the invoice It must identify the final consumer.

However, the DIAN has enabled a special contingency mechanism for scenarios where the electronic invoice cannot be issued.

The contingency states that in cases where there are technological inconveniences disabling the issue of an electronic invoice from a point-of-sale issuers must:

  • Issue the sales invoice from a ballot book and include the final consumer’s ID number.
  • Issue the ticket from the cash register with a POS system with the final consumer’s ID number.

Companies must present an electronic invoice for every document generated as a contingency, and they must be declared to the DIAN within 15 days from the contingency.

The company must transmit the ID number of the buyer in an electronic format just like with the electronic invoice in every case.

What products can you buy without VAT on the days without VAT in Colombia?

Final consumers will only be able to buy three of the same items.

The goods that can be purchased without VAT according to Article 38 of Law 2155 of September 14, 2021, are:

  1. Clothing with a value equal to or below 20 UVT. This includes any clothing or footwear.
  2. Clothing accessories with a value equal to or below 20 UVT
  3. Home goods, Computers, and communication equipment with a unit value equal to or below 80 UVT.
  4. Sporting goods with a unit value equal to or below 80 UVT.
  5. Toys and games with a unit value equal to or below 10 UVT.
  6. School supplies with a unit value equal to or below 5 UVT.
  7. Goods and inputs for the agricultural sector with a unit value equal to or below 80 UVT.

Conclusion: three days without VAT in Colombia to incentivize consumption

Since the beginning of the pandemic in Colombian citizens have been affected by stay-at-home orders seriously hurting the country’s economy.

The Colombian government has been implementing strategies and measures that will stimulate the economy and help citizens recover from the crisis as soon as possible.

One of the most popular and effective measures has been the three days without VAT.

Thanks to the days without VAT In 2020 over 5 billion COP were invoiced on those days specifically. The government has stated that it would like to continue the measures periodically every year.

In 2021 the days without VAT will continue to require the issuance of the electronic sales invoice as a control and business modernization measure, to continue the advancement of digitalization and to offer a better service to consumer.

Would you like to know more?

Request more information

You may also be interested in reading about...

All Portuguese Invoices Must Include a QR Code and ATCUD Code

UPDATED: With this measure, the AT aims to reduce tax evasion and fraud.

The "Crea y Crece" law makes the use of the Electronic Invoice mandatory among companies, SMEs and self-employed in Spain

The approval of the "Crea y Crece" Law makes the use of the B2B invoice mandatory in Spain.

Asia-Pacific: Status of e-Invoicing and Electronic Tax Reporting

From Japan to New Zealand, the APAC region is accelerating the implementation of e-Invoicing requirements