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MODIFICATION OF VAT REFUNDS PROCEDURE FOR SOCIAL HOUSING PROJECTS

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MODIFICATION OF VAT REFUNDS PROCEDURE FOR SOCIAL HOUSING PROJECTS

VAT

The Ministry of Finance and Public Credit published a draft of decree which would modify some aspects and requirements that must be met for the refund of VAT on social housing projects

 

By general rule, the VAT paid in the acquisition of materials for the construction of social housing projects gives the right to request its refund or compensation.

Through the draft of Decree of the Ministry, some of the requirements, that constructors must meet to request the VAT refund and/or compensation, would be modified. Especially, the Decree would state that in order to calculate the thresholds of the value of the real estate units, so that the project qualifies as a social housing project, the value of the related amenities, such as parking lots, warehouses, terraces, among others, must be taken into consideration.

Additionally, the Decree would extend the requirements and information that must be provided to submit the request before the Colombian Tax Administration.