Service Exporter in Colombia: Guide to Fiscal Responsibilities

If you're considering offering your services to other countries from Colombia, there are some key things you need to keep in mind:

You will acquire new tax responsibilities that you must update in the Registro Único Tributario (RUT) (Single Tax Registry). Here's what you need to know!

Responsibility 10: Customs Obligor

If you work remotely from the comfort of your home in Colombia and offer your services to clients abroad, you are now a service exporter. This means you become an electronic invoicer and acquire the responsibility of handling VAT.

Value Added Tax (VAT)

Generally, the export of services is exempt from VAT, but it's crucial that you meet the requirements for this exemption to be valid. You can consult articles 420 and 481 of the Tax Statute for more information.

However, keep in mind that even if the service is exempt, you will have the obligation to submit periodic declarations from the moment you update your RUT. Don't leave it for later!

Responsibility 52: Electronic Invoicing

The invoices you issue for exported services must comply with the requirements established by DIAN. It is advisable to include the export clause to avoid inconveniences.

Good news: DIAN offers a free electronic invoicing system and has tutorials on their website to guide you through the process. If you prefer to receive help, there are also service providers who can advise you in case you encounter any difficulties.

Remember that these responsibilities are in addition to income tax. If you want to delve deeper into this topic, we invite you to review our articles:

Stay informed and up to date!

Responsibilities with UGPP

Don't forget that, as an independent contractor, you have an additional responsibility with the Pension Management Unit and Parafiscal Contributions of Social Protection (UGPP), regardless of whether your services come from abroad. This regulatory body can audit your social security contributions and ensure they are in line with what's established.

Here are some tips to ensure your payroll complies with legal and current requirements:

Base Income for Social Security Contribution

It's important to know that your base income for social security contribution IS NOT 100% of your income. Only 40% is considered, known as IBC (Contribution Base Income).

For example, if you earn 10 million pesos a month, your contributions will be calculated on 4 million. Here's how to do these calculations for independents:

Health: 12.5%
Pension: 16%
ARL (Voluntary): 0.522% (this can vary depending on the risk. It's advisable to enroll, as in case of disability, ARL will pay 100%, while EPS only covers 66.66%).
Pension Solidarity Fund: 1% (this is mandatory if the IBC exceeds 4 SMMLV and can increase up to 2% depending on the IBC, calculated by number of minimum wages).

Liquidation Example

If we calculate a payroll with the previous example, we could have the following liquidation:

Contribution base income (IBC): 4,000,000 COP

Now, let's calculate the contributions:

Health: 12.5% of 4,000,000 = 500,000 COP
Pension: 16% of 4,000,000 = 640,000 COP
ARL (Voluntary): 0.522% of 4,000,000 = 20,880 COP
Pension Solidarity Fund: Not applicable
Total contributions: 1,160,880 COP

Conclusion

As a service exporter in Colombia, it's essential that you are aware of your fiscal responsibilities and comply with them adequately. Remember these key points:

Update your RUT with responsibilities 10, 48 and 52.
Implement electronic invoicing for your exported services.
Keep your social security contributions up to date, correctly calculated on the IBC.
Consider voluntary ARL affiliation for greater protection.

Staying informed and complying with these obligations will not only prevent problems with tax authorities but will also allow you to operate your business more efficiently and professionally in the international market.

Remember that tax information can change, so we recommend regularly consulting official sources such as DIAN and UGPP to stay up to date with any updates.

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Luisa Maria Penha

Finance Director - BetterWay Devs

https://www.linkedin.com/in/luisa-maria-penha-tascon-607b1a1b0/

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Angie Avila

Talent Finance Assistant -BetterWay Devs

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