DIAN REVENUE RULING
Definition of Cloud Computing services and requirements for their VAT-exclusion
By means of Revenue Ruling No. 17056 of 2017, the Colombian Tax Authority defined the term “Cloud Computing services” and the characteristics and requirements needed for their exclusion from VAT
According to Revenue Ruling 17056 of 2017, Cloud Computing services are defined as a model that allows the users to have ubiquitous and convenient access under demand to a network of a shared set of computational resources that can be provisioned and released instantaneously.
These services have to satisfy the following characteristics and requirements to be VAT excluded: (i) being a self-service under demand; (ii) being of broad access to the network; (iii) the user does not have control of the place in which the information is stored; (iv) the capacity must increase and decrease according to users’ demand; and (v) it has to be a measurable service.