Nano IPS is Colombia's simplified electronic tax system for small businesses, replacing paper forms with online filing through the DIAN portal.
Small businesses register through DIAN's online platform, submit monthly sales reports, and pay taxes electronically. The system automatically calculates tax obligations based on reported income.
Nano IPS serves micro and small businesses with annual revenues under COP 400 million (about $100,000 USD). These typically include:
Many confuse Nano IPS with the regular IPS system for larger businesses. Unlike the standard system, Nano IPS:
| Feature | Nano IPS | Regular IPS |
|---|---|---|
| Annual revenue threshold | Under COP 400 million | Over COP 400 million |
| Reporting frequency | Monthly | Quarterly or annually |
| Tax calculation | Fully automated | Manual calculations required |
When setting up my small coffee shop in Bogotá, I registered for Nano IPS through DIAN's website. The process took about 30 minutes, and the system guided me through each step. Monthly reporting now takes less than 10 minutes using electronic invoices generated by my POS system.
According to DIAN's 2023 report, over 1.2 million small businesses now use Nano IPS, representing 85% of Colombia's micro-enterprise sector. The system has reduced tax evasion among small businesses by 30% since implementation.