Colombia e-Invoicing Guide

Colombia was one of the first countries in Latin America to mandate electronic invoicing across the entire economy. Since January 2019, all B2B, B2G, and B2C transactions must go through the DIAN (Dirección de Impuestos y Aduanas Nacionales) pre-validation system. Every invoice receives a unique CUFE (Código Único de Factura Electrónica) code before it can be delivered to the buyer.

The system uses UBL 2.1 XML format with digitally signed documents. Colombia's clearance model means the tax authority sees every invoice before it reaches the recipient, giving DIAN real-time visibility into all commercial activity in the country.

Colombia's e-invoicing rollout was phased by taxpayer size, beginning with large taxpayers in 2019 and progressively extending to smaller businesses. By the end of 2019, the mandate covered all taxpayers. The system has been fully operational for several years and is now one of the most established in Latin America.

All taxpayers must issue electronic invoices through a DIAN-authorised technology provider or via DIAN's own free portal. Invoices must be in UBL 2.1 XML format, digitally signed with an ONAC-accredited certificate, and submitted to DIAN for pre-validation before delivery to the buyer.

There are limited exemptions for certain small businesses and specific transaction types, but the mandate covers the vast majority of economic activity including B2B, B2G, and B2C. Invoices must be archived for five years in their original electronic format.

Colombia operates a clearance model. The seller generates an invoice in UBL 2.1 XML, signs it digitally, and submits it to DIAN for pre-validation. DIAN verifies the invoice data, assigns a CUFE, and returns a validation response. Only after DIAN approval can the invoice be sent to the buyer.

Businesses typically use authorised technology providers (proveedores tecnológicos) to handle the technical integration with DIAN's systems. Each invoice also generates a PDF representation with a QR code for verification. The QR code links to DIAN's validation service, allowing anyone to confirm the invoice's authenticity.

Non-compliance with Colombia's e-invoicing mandate carries financial penalties and can result in the closure of a business's establishment. Invoices that are not validated by DIAN have no legal standing for tax purposes, meaning neither the seller nor the buyer can use them for tax deductions or credits.