A $12 million loan will benefit companies by lowering cost of complying with tax obligations and will facilitate trade between Colombia and other countries in the region

The Inter-American Development Bank (IDB) has approved a $12 million loan to Colombia that will allow it to develop and implement a system of electronic invoicing, which will increase the country's tax and customs-duty collection capability and will ease Colombia's insertion into the international economy.

The Promotion and Extension of an Electronic Invoice in Colombia will be a vital tool in the government’s efforts to combat tax evasion, which in the case of VAT stands at about 25 percent.

Besides reducing companies' costs in complying with tax regulations, electronic invoicing will enhance the interoperability of billing systems with other countries in the region, which will contribute to the goal of increasing and facilitating trade within Latin America.

The project calls for the design and implementation of an electronic invoicing technological platform, and includes the provision of free computer services to small- and medium-size companies that are less developed from a business standpoint.

The IDB loan for $12 million will havea bullet repayment in 2029, a grace period of 15.25 years and an interest rate based on LIBOR.