DIAN issues a general revenue ruling regarding the Carbon Tax

The new National Carbon Tax is in force since January 1st of 2017


Through its Revenue Ruling No. 3259 of 2017, the Colombian Tax Authority –DIAN- established that the mere acquisition of Natural Gas or Liquefied Petroleum Gas (LGP) would not trigger the Carbon Tax.

For the acquisition to be taxed, it is necessary that it is intended for “energy purposes and for combustion processes”. However, industrial users are the only taxpayers in the acquisition of LGP. Thus, public service providers are excluded as taxpayers when they purchase LGP.

Finally it is important to take into account that (i) when fuels are exported, they will not be taxed, nor when they are used for the replenishment of ships or aircraft in international transit; (ii) the current definitions of the different fuels are ruled by the provisions of paragraph 1 of article 167 of Law 1607 of 2012 and; (iii) the National Carbon Tax is deductible from income tax as a higher value of the cost of the good, as long as what is established in article 107 of the Tax Code is met.