On November 24th 2015, the Ministry of Finance issued Decree 2242, which regulates the issuing conditions and the effectiveness of electronic invoicing for the purpose of its widespread increase and tax control.

The aim is to establish new technical conditions for the issuance and acceptance of electronic invoices. Therefore, the previous standard which regulated the matter, Decree 1929/ May 2007, has been repealed.

The electronic invoice is a document that supports the transactions of purchasing goods and services. It will be able to be generated it with the use of any technology, which will facilitate interoperability between buyers and sellers who use Internet as distribution element.

Through electronic invoicing, the Government seeks to improve the country’s competitiveness, reducing transaction costs in the economy and increasing efficiency in logistics processes. Additionally, this tool will help tax control.

It might be highlighted the following key issues about electronic invoicing:

►► 1. Invoices must be issued electronically using the standard XML. That is, the same used for the generation of exogenous information.
►► 2. Each invoice must be digitally signed and will include a unique code of electronic invoice.
►► 3. For the acceptance and / or rejection of invoices among taxpayers a new information system will be incorporated in order to allow this interaction.
►► 4. The taxpayer who issue electronic invoices must submit to the DIAN, within 48 hours, a copy of each of the generated invoices.

Article 1 of the standard states that the implementation of electronic invoicing may be optional for any taxpayer requested to invoice. It also states made by decision that Tax Department might indicate the taxpayers who would be obligated to invoice. This last mentioned is expected to be operationally possible from the second half of next year.