DID YOU KNOW… Financial institutions are NOT REQUIRED TO ISSUE ELECTRONIC INVOICES?

DID YOU KNOW… According to the new regulations on Electronic Invoicing and Equivalent Documents, the only items deductible without electronic documents are PROVISIONS AND DEPRECIATION? All payments to third parties must have electronic support to be tax deductible in the income tax and deductible taxes in VAT.

IMPORTANT NEWS
Article 616-2 of the Tax Code establishes that banks are not required to issue invoices: “Invoices are not required for transactions carried out by banks, financial corporations, savings and loan associations, and commercial finance companies.” Banks do not issue an “Extract” (which is considered an equivalent document), but rather a “STATEMENT OF ACCOUNT,” which is not classified as an equivalent document.

“THEREFORE, WE ARE OBLIGATED TO ISSUE THE ELECTRONIC DOCUMENT TO THE DIAN (National Tax Authority) SO THAT ALL FINANCIAL EXPENSES ARE DEDUCTIBLE FOR INCOME TAX AND VAT IS DEDUCTIBLE.”

REGULATORY FRAMEWORK
The regulatory framework for electronic invoicing includes:

• Article 616-1 of the Tax Code
• Article 13 of Law 2155 of 2021: Invoicing System
• Decree 442 of 2023: Regulation of electronic invoicing.
• Resolution 000165 of 2023, which repealed the previous Resolution 000042 of May 5, 2020, and regulates all processes related to the generation, transmission, validation, issuance, and reception of sales invoices and equivalent documents (obligations, requirements, deadlines).