DIAN REVENUE RULING
In an international sale of goods, the tax recognition of revenue will take place in the moment in which the accrual for accounting purposes occurs
The Tax Authority referred to the recognition of tax revenue in an international sale of goods
In its revenue ruling 0588 of March 17th 2017, the Colombian Tax Authority –DIAN-, clarified that according to section 21-1 of the Tax Code, in determining the value of tax income, among other items, taxpayers which are obliged to maintain accounting records (corporations and other entities) shall apply the systems of recognition and measurement, under the technical accounting regulatory frameworks in force in Colombia (IFRS). Likewise, section 28 of the Tax Code determines that income earned for tax purposes is the income accrued in the year or taxable period, for taxpayers obliged to maintain accounting records.
Therefore, in an international sale of goods, the tax recognition of revenue will be made in the moment in which the accrual for accounting purposes occurs.