Those who perform factoring operations in Colombia, regarding electronic invoices -facturas- do not really do so by negotiating the invoices themselves, as will happen starting in August 2021, but by assignment of economic rights by the seller of the goods or provider of the services to the acquiror of the rights, using for said purpose the centennial rules of the Civil Code. And that is so, because currently in Colombia electronic invoices are not “negotiable instruments” and are issued solely for tax purposes.
After Law 1231 of 2008 modified the regime of invoices as negotiable instruments.
According to the paragraph of article 1 of Law 1231, "The Government will regulate the circulation of the electronic invoice as a negotiable instrument".
Last August 20, 2020, after more than 12 years without having done so, the Government regulated the circulation of electronic invoices as negotiable instruments.
Based on this regulation, the DIAN has issued other operational regulations and it is expected that in August 2021, the RADIAN will start operating, through which the negotiation of electronic invoices as negotiable instruments will be implemented for the first time in Colombia.
In order for electronic invoices to be considered as negotiable instruments, they must not only comply with the provisions of the Code of Commerce for said documents, but they must also comply with the tax requirements established in Article 617 of the Tax Statute, including:
- The use of the standard electronic XML generation format established by the DIAN and a pdf in a compressed format;
- The use of a consecutive numbering authorized by the DIAN;
- Compliance with the requirements of Article 11 of Resolution 042 of 2020, which includes, among others, that it is expressly denominated as electronic invoice as negotiable instruments, that it is fully identified who provides the service and who acquires it, that it has consecutive numbering, date and time of generation and issuance, etc.;
- The use of the digital signature to ensure authenticity and integrity and non-repudiation of the electronic invoice, following the signature policy adopted by the DIAN; and
- The use of the Unique Electronic Invoice Code (CUFE).
With the regulation of electronic invoices as negotiable instruments and the implementation of RADIAN, it will be possible to truly perform electronic factoring operations.
We are confident that the regulation of electronic invoices as negotiable instruments and the implementation of RADIAN will contribute exponentially to the country's development and will enable the further expansion and evolution of all our clients' lines of business.
