VAT taxpayers who have commenced their activities within the tax year shall submit and pay their returns on a bimonthly basis

In the event in which a company begins its activities during the tax year, no matter its year of incorporation or the date of register in the tax registry (RUT), it must submit and pay its tax returns every two months


 In Revenue Ruling No. 570 of the 20th of June of 2016, the Colombian Tax Authority — DIAN— notes that companies are not allowed to be classified under the simplified regime for VAT purposes. In this vein, in case they sell goods that are subject to this tax, they must invoice and collect VAT.

As follows, the Authority clarifies that in accordance with paragraph 1 of article 24 of Decree 1794 of year 2013, new taxpayers that are responsible of VAT that start their activities during the tax year, must file their tax returns bimonthly in accordance with article 600 of the Colombian Tax Code.

Furthermore, the Colombian Tax Authority sets that in the event an individual is the one that performs the activity subject to VAT and changes of regime because its income is over the limits set on Article 499 of the Colombian Tax Code, for purposes of determining the periodicity in which the tax records shall be filed and payed, it shall be considered the net income obtained on the previous fiscal year. This, taking into account that this individual is not a new VAT responsible agent and that new responsible are considered those who start to perform the activities subject to VAT on a determined fiscal year.