Can I issue an invoice without VAT?

Can I issue an invoice without VAT?

Electronic invoicing without VAT

As established by the financial UCI, transparency is necessary, but also the commitment of all parties. That is to say, there is also the right for the citizen to know the cases in which he can invoice without VAT, as well as his commitment to do it correctly.

A product or service not subject to VAT implies that it is not related to this tax and, therefore, it should not appear on the invoice. However, a product or service exempt from VAT means that it is subject to this tax, but the current regulations exempt it from payment. This is important because in these cases the invoice must include a formal indication that it is exempt under Article 20 of Law 37/1992.

As UCI Financiera states, experience is a factor that guarantees maximum responsibility in financial transactions, whether real estate or of any other nature. This experience in the case of invoices with or without VAT, will allow us to address some assumptions that for the vast majority of citizens are unknown or confusing. In any case, we expose below some of them to take them into account when preparing invoices.

Invoice without VAT in Colombia

The Colombian government announced three new VAT (19% tax) exempt days for this 2021 by means of Law 2155 of September 14, 2021. This measure will take place on the following dates: October 28, November 19 and December 3, and will apply to specific products purchased at points of sale and online.

Read more  How do I force Windows 8.1 to update?

It is important that you have ready the sales products that are covered by the measure so that you can invoice without any problem during the VAT-free days. The products you select will automatically be available to be invoiced without the tax.

Once you mark your products for the VAT-free days, they will be available for automatic invoicing by deducting the VAT on the invoices you generate on October 28, November 19 and December 3 from 0:00 am to 11:59 pm each of these days.

It is very important that you assign to your sales products the category to which they belong, this will allow you to save time and invoice your products correctly. Here is how to do it:

Activities exempt from VAT in Colombia 2020

Sometimes, there are certain individuals who have the possibility of making and issuing a Sales Invoice for a service rendered. But they do not have any intention of becoming Self-Employed and bear the expenses and formalities that this entails…

Yes, there is the possibility of making and issuing Sales Invoices without the need to register as Self-Employed. However, the individual who wants to issue an invoice must comply with certain conditions.

For the Social Security, an activity is “habitual” when, for example, the same amount is invoiced every month for the same service. Therefore, you must confirm that the activity is complementary and punctual.

In addition to complying with the two previous requirements, it is essential to register in the Census of Entrepreneurs, Professionals and Withholders, as well as to fill in and complete form 036 of the Tax Agency.

Read more  How do you become a qualified valuer?

What could happen if an anomaly is found? The most probable thing is that you will have to pay before the Tax Agency all the monthly quotas for being Self-Employed since you registered with the Tax Agency with the model 036. And in addition, with a surcharge of 20% for delay.

VAT free invoice pdf

VAT is a tax for all consumers from which there seems to be no escape, right? Well, the good news is that there are exemptions. Find out which activities are exempt from VAT and what is the difference between an exemption and the 0% rate.

As you know, this consumption tax is one of the most important collection tools in the country. Some of the essential points of VAT that you need to familiarize yourself with in order to better understand the concept are the following:

The best example of an indirect tax is the VAT. This type of tax is defined as a tax collected by an intermediary, who does not bear the tax burden and acts as a collection agent that passes the tax on to the final consumer.

The aforementioned article also mentions that the taxpayer will transfer such tax, expressly and separately, to the persons acquiring the goods, using or enjoying them temporarily, or receiving the services.

As mentioned at the beginning, there are differentiations between products and services exempt from the tax, those taxed at a 0% rate and those that are not subject to Value Added Tax. These are the categories into which VAT is divided:

Can I issue an invoice without VAT?
Read more  Which dishwasher has a 5 year warranty?
Scroll to top