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DECREE OF THE MINISTRY OF FINANCE

The transitional VAT regime for public contracts is regulated

The VAT regime applicable will be that in force on the date of the subscription of the respective contract

 

 By means of Decree 1950 of 2017, the Ministry of Finance regulated the applicable transition regime of sales tax to contracts derived from transport infrastructure and concession contracts entered with government entities.

In this regard, it was determined that the applicable VAT regime will be that in force on the date of the signing of the respective transport infrastructure concession contract. At the time of VAT accrual, the legal representative of the construction or intervention entity must issue a certificate of destination of the goods and services that will be incorporated directly in the execution of construction and supervision contracts, provided in the article 193 of Law 1819 of 2016.