Through Decree 438 of 2020, the Ministry of Finance established transitional measures regarding the value added tax (“VAT”) and the Special Tax Regime.

Value added Tax

The following goods are exempt from VAT on sales and importation in the national territory (without the right of return or compensation), for the term of the emergency determined in Decree 417 of 2020:

  1. Nebulizer
  2. Scale weighs babies
  3. Vital signs monitor
  4. Electrocardiograph
  5. Glucometer
  6. Tensiometer
  7. Pulse oximeter
  8. Secretions Cleaner
  9. Defibrillator
  10. Incubator
  11. Radiant heat lamp
  12. Phototherapy lamp
  13. Infusion pump
  14. Sense organs team
  15. Oxygen Bullet
  16. Stethoscope
  17. Fan
  18. Portable X-ray equipment
  19. Oxygen concentrator
  20. Transport monitor
  21. Flowmeter
  22. Cephalic chamber
  23. Hospital bed
  24. Pediatric hospital bed

The balance of VAT may be imputed in the following periods, but in no cases be subjected to return and or/ compensation. The responsible of VAT that dispose of these exempt assets are entitled to deductible taxes on VAT as long as the requirements of article 485 and the Tax Statute are met.

For the purposes of applying the exemption, the following procedure must be followed:

  1. The Phrase “Exempt Assets-Decree 417 of 2020” must be included in the bill.
  2. The goods must be sold or imported within the term of the emergency determined in the Decree 417 of 2020.
  3. The responsible that makes the sale must submit a sales report on the las day of each month, which must be sent to the DIAN in the first 5 days of each month, certified by a public accountant or fiscal auditor. The sale report must determine the invoices or equivalent documents registering number, date, quantity specification of the assets and value of the operation.
  4. The responsible that makes the importation must submit a sales report on the las day of each month, which must be sent to the DIAN in the first 5 days of each month, certified by a public accountant or fiscal auditor. The sale report must determine the import return, registering number, date, quantity, specification of the good, value of the operation ante invoice number of the supplier from abroad.

If the provisions of subparagraphs 3 and 4 are not fulfilled as well as if there are errors or presentation out of term, the sanction of article 651 of the Tax Statute will be applicable.

If the provisions of subparagraphs 1 and 2 as well as the general provisions are not fulfilled the exemption will be inapplicable and, therefore, the import and/or sale will be subject to VAT in accordance with the provisions of the Tax State.

Special Tax Regime

The update of the web registration of taxpayers of the Special Tax Regime could be carried out until June 30, 2020.

In addition, the meeting of the management body that approves the destination of the net surplus can be held until Jun 30, 2020, for the fiscal year 2020.