Supporting document for those not obliged to invoice

1. Which subjects are not obliged to invoice or generate an equivalent document?

2. How should I bear such costs and expenses?

Article 1.6.1.1.4.3. of Decree 1625 of 2016 establishes which subjects are not obliged to issue sales invoice or equivalent document:

1. Banks, financial corporations, and financing companies.

2. Savings and credit cooperatives, higher grade cooperative organizations, cooperative auxiliary institutions, multi-active and integral cooperatives, and employee funds, in relation to the financial operations carried out by such entities.

3. Individuals not responsible for VAT, who meet the conditions given in paragraphs 3 and 5 of art. 437 of the Tax Statute, i.e., that the income of the immediately preceding year is less than 3,500 UVT; not having more than 1 commercial establishment; not developing franchise activities; not being customs users; that the consignments made during the preceding year have not exceeded 3,500 UVT; and that they do not obtain income exceeding 4,000 UVT from contracts with the State.

4. Individuals not liable for excise tax, provided they meet all the conditions set forth in article 512-13 of the E.T., i.e., that the income of the immediately preceding year is less than 3,500 UVT and that they do not have more than 1 commercial establishment.

5. Companies constituted as legal or natural persons that provide urban or metropolitan public passenger transportation services, in connection with these activities.

6. Natural persons linked by an employment or legal and regulatory relationship and pensioners, in relation to the income derived from these activities.

7. Individuals who only sell excluded goods or provide services not taxed with sales tax -VAT-, who have obtained total gross income from these activities in the previous year or in the current year, less than three thousand five hundred (3,500) Tax Value Units -UVT. Gross income does not include income derived from an employment or legal and regulatory relationship, pensions, or occasional profit.

8. Service providers from abroad, without tax residence in Colombia for the provision of electronic or digital services.

Having clear who are not obliged to invoice or generate equivalent document, the costs and expenses originated by commercial operations with the subjects described above, must be supported with a document that proves such transaction. Article 1.6.1.1.4.12 of Decree 1625 of 2016, Sole Regulatory in Tax Matters (DUT) establishes as proof of these transactions the Supporting Document in acquisitions made to those not obliged to invoice, which must comply with the following requirements:

1. To be denominated "SUPPORTING DOCUMENT IN ACQUISITIONS MADE TO NON-BILLING ENTITLED PERSONS".

2. Have an operation date that must correspond to the date of generation of the document.

3. Contain surname and name or company name and tax identification number (NIT) of the seller or service provider.

4. Contain the surname and first name or company name and tax identification number (NIT) of the purchaser.

5. Carry a consecutive numbering system authorized by DIAN, indicating the authorized range, the date of authorization and the validity of the request.

6. Specific description of the good or service rendered

7. Detail the total value of the operation.

If the purchaser is an electronic biller, the supporting document must be generated electronically, complying with all the conditions, terms and mechanisms provided by the DIAN, otherwise the document may be generated in physical form complying with the requirements described above.

The electronic filing will be mandatory as soon as the entity publishes the conditions and mechanisms for its issuance.