DIAN electronic invoicing for exports: what Colombian companies issue to foreign clients

A Bogotá design agency invoices a Madrid client €12,000 and a Texas client US$20,400 each month. Both invoices are XML documents validated by DIAN within seconds and returned with a CUFE, a unique code printed on the PDF the clients receive. Neither client has heard of DIAN. Both will notice if the invoice is wrong.

Every invoice through DIAN

Colombia's electronic invoicing system requires invoices to be validated by DIAN before they reach the buyer. Each one receives a CUFE (Código Único de Factura Electrónica). The XML goes to the buyer with a graphical representation, usually a PDF with a QR code.

Export invoices are part of the system.

Fields for a foreign buyer

• Buyer identification: the foreign tax ID and country, using DIAN's document type for foreign entities, not a Colombian NIT.
• Address: the buyer's foreign address.
• Currency: the invoice currency, such as USD or EUR, with the exchange rate used. Values are reflected in pesos for tax.
• Tax treatment: for exported services meeting the conditions, IVA exempt, with the relevant reference.

Supporting the IVA exemption

Exports of services can be exempt from IVA when the service is used exclusively abroad by a foreign buyer without business or activity in Colombia, and the documentary requirements are met. Keep together:

1. The written contract with the foreign buyer.
2. The electronic export invoice.
3. Proof of payment.

Missing documents are the most common reason DIAN rejects the exemption in an audit.

Currency and books

Use the TRM (the representative market exchange rate) for the date, or the rule your accountant applies, and use it consistently. Exchange differences between invoice and payment are recognised for tax.

Getting paid

A Madrid client paying a Colombian bank sends an international transfer; a Texas client sends a wire. Both can be slow and lose fees on the way. Euro and US account details let them pay domestically, and you can bring funds to Colombia or hold them, as your exchange rules allow.

Paying into Colombia: the local rail

Source: Banco de la República: Bre-B. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet does not issue DIAN invoices; your e-invoicing provider does. A Rivet business account accepts registered companies after verification, including Colombian companies, with US account details on every plan and euro and sterling details from the Growth plan, and matches payments to invoices. Rivet is not a bank; regulated partner institutions hold the funds.