DIAN REVENUE RULING
The commercialization of products derived from petroleum is excluded from VAT
The Tax Authority determined that for this derived products, VAT is considered to be a single-stage tax and therefore the marketing of products such as oil derived from petroleum is excluded from VAT
In its Revenue Ruling No. 017173 of June 30th, 2016, the Colombian Tax Authority –DIAN—determined that in accordance with several rulings previously issued, sales tax (VAT) on products derived from petroleum is considered to be a single-stage tax. In this vein, it is solely accrued for one of the commercialization phases.
Bearing this in mind, the Colombian Tax Authority reiterates Revenue Ruling No. 076155 from October 2005 in which it determined that producers, importers and related parties are the subjects considered responsible for paying such tax with regard to products derived from petroleum. Therefore, it is understood that in the commercialization of such products and specifically in the case of derived oils, no VAT shall be charged.
Additionally, it is clarified that when imports of products derived from petroleum are carried out, the responsibility for the aforementioned tax is determined at the time of the settlement and payment, along with the customs duties.