DIAN refers to the VAT exclusion for industrial machinery produced outside Colombia.

Revenue Ruling No. 30880 of October 27, 2015


Machinery not produced in Colombia, destined for the transformation of raw materials, and imported by High Exporters (ALTEX) may benefit from VAT exclusion. According to the ruling, in order to access this benefit, the machinery shall remain as part of the equity of the importer during a term of at least its useful lifetime, without allowing for its use to be at any title, except if it is made through a leasing agreement.

In the event that machinery has not completed its useful lifetime and/or is retired from the production line of the beneficiary, there would be a breach of Section 428 paragraph (g) of the Tax Code. In this vein, the importer will have the obligation to reintegrate the VAT that was not payed, plus the accrued interests from the moment of the import and a sanction equivalent to 5% of the FOB value of the imported machinery.