Colombia Regulates Electronic Invoice Registration as a Security in RADIAN
The National Tax and Customs Directorate (DIAN) has published Resolution 000015, which regulates the registration of the electronic sales invoices as a security. The commercialization of invoices in Colombia will be subject to registration in the RADIAN platform. The system will allow for users to consult and track documents.
The RADIAN technical annex describes the characteristics, conditions, terms, and technological mechanisms for the generation, transmission, validation, delivery, and reception of the “events” associated with the electronic sales invoice as a security.
With this regulation the DIAN wants taxpayers to be able to register events like changes of document ownership. The hope is that it will increase trust between the parties in transactions that facilitate immediate liquidity, like factoring.
How Does the Electronic Invoice Commercialization System Work in Colombia?
The RADIAN platform provides an updated record of the events related to the electronic invoice as a security. It will allow users to track the status of documents.
As part of the process, the DIAN will register and validate the electronic invoice as a security circulating in national territory. Once the requirements and events are validated, the issuer or the legal owner will express their intention to put the electronic invoice into circulation as a security.
Requirements for Registering the Electronic Sales Invoice as a Security
Securities must contain: reference to the law in which the title is incorporated; the signature of its creator (Article 621 of the Code of Commerce); all invoice information required for tax purposes as found in Article 617 of the Tax Statute, as well as those found in Article 11 of Resolution 000042 of May 5, 2020
Expiration date of the electronic sales invoice
Acknowledgement of receipt of the electronic sales invoice
Receipt for the good or service provided
Express acceptance, tacit acceptance, or grievance against the electronic sales invoice
The method of generation, transmission, validation, delivery, and receipt of these items must also be in line with the current “Electronic Sales Invoice Technical Annex."
Events Registered in RADIAN
“Events” are structured electronic documents that correspond to the actions taken by RADIAN users that are associated with the security.
Registration of the electronic invoice as a security circulating in national territory in the RADIAN platform
Payment of the electronic invoice as a security
Limitation and termination of limitation for electronic sales invoice circulation
All events must be validated by the DIAN.
13 users have been defined, each with a different role:
The Special Administrative Unit of the National Tax and Customs Directorate -DIAN
The issuer of the electronic invoice as a security
The legitimate owner(s) of the electronic invoice as a security
The endorser of the electronic invoice as a security
The endorsee of the electronic invoice as a security.
Systems for electronic negotiation
The competent authorities
RADIAN users must have the necessary technological capacity to adapt to the system. The DIAN will qualify users that meet the requirements, one being that they make the changes set out in new technical annexes within three months from the date of publication.
The generation, transmission, delivery, and registration of events in RADIAN is considered part of the electronic invoicing system. This service may therefore be offered by technology providers.
Each RADIAN user must identify the type of software they will use for the generation, transmission, validation, and delivery of events associated with the electronic sales invoice as a security. They must register the software, and if it is being provided by a third party, they must verify that the supplier has been authorized by the DIAN to provide electronic invoicing services.
Resolution 000015 regulates the practice of factoring in Colombia, outlining how to manage it on the RADIAN platform. Factoring is a widely used financing system in Colombia in which invoices are prepaid to improve liquidity.
EDICOM, a technology partner specializing in electronic invoicing, is also recognized as a Certification Entity by the ONAC.