Accounting in Colombia: standards, taxes and GoSoft
Accounting guide for Colombia: National Tax and Customs Directorate (DIAN), IVA 19 %, accounting framework, books, e-invoicing, tax returns and how to set up GoSoft.
Key facts
| Item | Detail |
|---|---|
| Tax authority | National Tax and Customs Directorate (DIAN) |
| Currency | COP · Colombian peso |
| Tax ID | NIT |
| Consumption tax | IVA · 19 % |
| Income tax | Corporate income tax: 35 %. |
| Fiscal year | Calendar year (January 1 to December 31). |
| E-invoicing | Electronic sales invoice validated by DIAN; also support documents for purchases from non-obligated sellers and electronic payroll. |
Accounting framework
Financial reporting standards by groups (Decree 2420 of 2015): group 1 full IFRS, group 2 IFRS for SMEs, group 3 simplified accounting for micro-enterprises.
Chart of accounts
The Single Chart of Accounts (PUC, Decree 2650 of 1993) is still the most used coding reference (1 assets, 2 liabilities, 3 equity, 4 revenue, 5 expenses, 6 costs), although under IFRS a company may have its own catalog.
Financial statements
In Colombia the four statements are presented with these names (GoSoft uses them in its reports and PDFs):
- Statement of financial position
- Statement of comprehensive income
- Statement of changes in equity
- Statement of cash flows
Mandatory books and records
Official books (Journal, Ledger and Balances, Inventories) and annual third-party information report (exógena) to DIAN.
Periodic tax returns
Bimonthly or four-monthly VAT (Form 300), monthly withholding at source (Form 350), annual income tax (Form 110) and municipal ICA.
What you need to know
- General VAT 19 % and reduced rate of 5 %; some goods are excluded or exempt.
- Income tax withholding at source, ReteIVA (15 % of VAT) and ReteICA (each municipality's rate).
- Tax amounts are set in UVT (tax value unit), updated every year.
Taxes and withholdings in GoSoft
These are the reference taxes and withholdings GoSoft loads for Colombia. You adjust them in Taxes and withholdings (rate, minimum base and ledger account).
| Code | Name | Type | Applies to | Rate |
|---|---|---|---|---|
IVA19 | VAT 19% | VAT | sales and purchases | 19 % |
IVA5 | VAT 5% | VAT | sales and purchases | 5 % |
RTE-COMPRAS | Income tax withholding · purchases | Income | payments to suppliers (withholding) | 2.5 % |
RTE-SERV | Income tax withholding · services | Income | payments to suppliers (withholding) | 4 % |
RTE-HON | Income tax withholding · fees | Income | payments to suppliers (withholding) | 11 % |
RTE-ARR | Income tax withholding · property rent | Income | payments to suppliers (withholding) | 3.5 % |
RTE-IVA | VAT withholding (ReteIVA) | VAT | payments to suppliers (withholding) | 15 % |
RTE-ICA | ICA withholding (municipal rate) | Municipal | payments to suppliers (withholding) | — |
How to set up GoSoft for Colombia
In My company, choose the country Colombia and the currency COP.
When you log in again, GoSoft shows Updating the accounting setup for Colombia: it codes the chart of accounts, loads the country's taxes and checks the settings. It happens only once.
In Chart of accounts → Options, review the coding and download the chart as a PDF for your accountant to approve.
In Financial reports → Taxes and withholdings, confirm the rates and choose the ledger account for each tax.
Record activity (manually or from the modules) and use Tax returns to prepare each period's drafts.
Rates and deadlines change. Before filing, confirm what is current at National Tax and Customs Directorate (DIAN) and with your accountant.