SALES TAX

Article 488. Only deducted taxes incurred in operations in cost or expense. Only
entitles a discount, the sales tax on the purchases of tangible movable and ser
vices, and imports, in accordance with the provisions of income tax, resulting c
ounted as costs or expenses of the company, which intended to transactions subje
ct to sales tax.
Article 490. Deductible taxes on taxable supplies, excluded and exempt will be c
harged accordingly. When goods and services that entitle the discount will be us
ed indistinctly in taxable transactions, exempt or excluded from the tax and it
is not possible to tax them directly to one and the other the calculation of the
discount is made in proportion to the amount of such operations fiscal period f
or the absence of specific operations to the postponement of the calculation in
the next fiscal period to verify any of them.
Article 483. Determination of tax for those responsible for the common system. T
he tax shall be determined: a) In the case of sale and delivery of services, the
difference between the tax generated from operations taxed and deductible taxes
legally authorized. b) On importation, applying in each transaction the tax rat
e for taxable income.
Article 484. Reduced deductions or canceled operations, rescinded or resolved. T
he tax generated po taxable transactions is established by applying the tax rate
to the taxable base. Tax thus obtained is deducted:
a) The tax that results from applying the transaction value attributable to asse
ts received in return in the period, the tax rate which, in turn, was holding th
e respective sale or provision of services.
b) The tax that results from applying the transaction value of benefits attribut
able to sales or canceled, rescinded or resolved in the respective period, the t
ax rate which, in turn, was holding the corresponding operation. In the case of
cancellations, terminations or partial resolutions, the deduction is calculated
considering the proportion of the value of the transaction as appropriate.
The deductions provided in the preceding, only proceed if the refunds, cancellat
ions, terminations and decisions that create them, are properly supported in the
accounting of responsibility.
Article 485. Deductible taxes. Deductible taxes are: a) The sales tax billed to
the responsible for the acquisition of movable tangible property and services, u
p to and limit resulting from applying the value of the transaction recorded in
the respective invoices or equivalent documents, the rate of which they were tax
payable on the transactions, the excess of this percentage will be increased co
st or value of the respective expenditure.
b) The tax paid on the importation of movable tangible property. When the price
of imported goods is higher than the rate of tax which they would subject the tr
ansactions, the excess of this percentage will be increased cost or value of the
respective expenditure. (Law 6 / 92, art. 19)
Article 485-1. Discount Sales tax calculated on taxable transactions carried out
with officials of the simplified system. The sales tax held in the transactions
referred to in bunk e) of Article 437, may be discounted by the head belonging
to the common system, as provided by Articles 483 and 485 of the Tax. (Added Law
223/95, art. 22)
MINISTRY OF FINANCE AND PUBLIC CREDIT
DECREE NUMBER 522 OF 2003 (7 MAR. 2003) for which partially regulates Law 788 of
2002 and the Tax Statute MINISTER OF THE INTERIOR AND JUSTICE OF THE REPUBLIC O
F COLOMBIA, entrusts FUNCTIONS UNDER PRESIDENTIAL DECREE 500 4 MARCH 2003 In exe
rcise of the constitutional and legal faculties, especially those conferred in p
aragraph 11 of section 189 of the Constitution and developing the provisions of
Law 788 of December 27, 2002, decrees: () ...
ARTICLE 15. Limitation discountable VAT. In accordance with the provisions of Ar
ticles 485, 488 and 490 of the Tax, responsible for the sales tax, to refine the
tax charge VAT to the value of bankable, should take into account the constrain
ts arising at different rates tax to be applied in their operations. For this pu
rpose,€shall contain separate accounting records for the output transactions at
the rate applicable to each, and the tax generated in the costs and expenses at
tributable to each rate.
When goods and services they are entitled to tax constitute discountable fees an
d / or expenses common to the transactions exempted, excluded or taxed at differ
ent tax rates, there must be a proportion of taxes deducted in connection with t
he proceeds of each rate and excluded from operations.
To this end, those responsible must bear suspense in their accounts, in which bi
-monthly period during and debit the value of the sales tax attributable to the
costs and common costs. At the end of each quarter these accounts are paid from
the account sales tax payable on the value of taxes and costs and common costs i
n proportion to the participation fee income in total income, limiting the rate
at which were subject of sales.
The debit balance accounts and be transitional at the end of two months must be
paid under the profit and loss. ... ()
Note No. 035 942 of 15.05.2007 Lady LUCY CORNER MARINEL BUITRAGO Calle 127 No. 4
1 B - 69 203 NICE AP IX Bogotá, DC SUBJECT: SALES TAX WORDS: FORMAL SOURCES pro
portionally discounting TAXES: TAX STATUS, ART. Regulatory Decree 490 1813, 1984
, ART. 30 Best regards, Mrs. Lucy Marinela:
We respond to the consultation of reference, which asked whether "in the calcula
tion of the apportionment of VAT on sales bankable exempt, taxable and excluded
must be taken into account only the total returns or sales?
First, it is necessary to clarify that the jurisdiction of this office is in the
general and abstract interpretation of tax regulations at the national, the wor
ding of the provisions of Article 11 of Decree 1265 of 1999, in accordance with
Article 100 of the Resolution 1618 of February 22, 2006, a sense in which to res
pond to your query.
The Unified Concept Sales Tax No. 00 001 of June 19, 2003, in relation to the pr
oportionality, said:
"WORDS: taxes deducted - Proportionality. Factors which make up the tax base. SE
RVICES FROM OUTSIDE. (PAGES 341-343) 1.6. PROPORTIONALITY
Article 490 of the Tax Code provides: "(When goods and services that carry the r
ight to discount used indistinctly in taxable transactions, exempt or excluded f
rom the tax and it is not possible to tax them directly to each other, the compu
tation of the discount is made in proportion to the amount of those transactions
from the corresponding fiscal period. The absence of specific operations of com
puting the deferral period following FISCA check which one of them. "
The proportionality operates exclusively when the goods or services purchased on
which tax is paid on sales, and that entitle off conforms to the rules governin
g the tax, intended either to taxable supplies, exempt or excluded for of this t
ax and it is not possible to tax them directly to both. The computation of the d
iscount is made proportionately in relation to taxable or exempt operations, exc
luding operations excluded ... ...
The law calls for the operations and consequently the accounting records are con
sistent, and responsible for what must not maintain separate accounts for operat
ing time, taxed, exempt and excluded), but accounts at the rate applicable to th
e goods or services performed , which will reveal not only the tax due but the t
axes deducted for each one of them ... "(emphasis out of text). In turn, the fin
al paragraph of Article 30 of Regulatory Decree 1813 of 1984 provides:
"In the last two months of the fiscal year will be a corresponding adjustment in
this suspense account, the account yen" SALES TAX PAYABLE ", so that the tax de
ducted during the period for the cost v Common costs is proportional to the cumu
lative amount of taxable supplies or taxable and exempt operations and in the ca
se of exempted goods producers or exporters. "(emphasis out of text). The same c
oncept, when dealing with the effect of repayments in the tax assessment (pages
329-330), said: "...
Moreover,€the recognition of revenue from the sale of goods means that the tran
saction constitutes a definitive exchange and therefore there is no uncertainty
about the value of the consideration arising in the sale (Article 98 of Decree 2
649 of 1993). In turn, returns, rebates and discounts should be recognized separ
ately from gross income.
Thus, as the return means that the operation was performed without any uncertain
ty about the fee, only for reasons of security or terms of sale of products, sat
isfaction is not as buyer returning to the seller and to be replaced by others.
A sale transaction is aborted, when for various reasons and taking into account
the economic reality principle which governs the accounting, not made a final ex
change of goods, so it melts initially agreed, a situation that has the effect f
iscal and identified in Article 484 of the Tax.
The statement of the sales tax is a true reflection of accounting, which records
what has actually been made by the taxpayer, so it is clear that if any of the
taxable supplies, exempt or excluded is the subject of rebates, discounts or reb
ates, the these must be recorded in the accounts, which ultimately they affect t
hat support will be the values to be carried to the appropriate tax return.
According to the above, if it is conditional discounts, the value subject to VAT
is the total value of the transaction. In the case of actual discounts, the tax
base for tax purposes is the value of the sale and discount less actually done
(not conditioned). (Article 454 of the Tax).
However, in the case of refunds as provided in subparagraph a) of Article 484 of
the Tax and determines both the sale value as the tax base to be applied, be ta
ken into account the value corresponding to the completed return and the corresp
onding tax rate of recovery, management determined that essentially made the act
ual sale and the tax that corresponds to it.
In the case of operations canceled, rescinded or resolved in the relevant period
, be taken into account referred to in paragraph b) of Article 484 of the Tax.
According to the above, it is clear that the value of a sale will necessarily be
diminished with the concepts mentioned above, which reflect the ultimate value
of transactions. "(Emphasis out of text).
In this context, the correct determination of deductible taxes implies that prop
ortionality must be calculated subject to the operations actually carried out, w
hich means that the value of gross sales should be reduced to that of the return
s, because otherwise the figure would be over or underestimated.
Finally we told the Directorate of National Taxes and Customs, in order to provi
de taxpayers and the general public users direct access to their doctrinal prono
uncements, he has published on its website www.dian.gov.co interne, base concept
s in tax, customs and exchange issued since 2001, the four can be entered by the
icon of "Norms" - "art" - by clicking on the link "Doctrine Law Office." Sincer
ely, ISABEL CRISTINA SÃ NCHEZ GARCÃ S Chief Doctrine Division Law and Tax Law Office
Article 490 of the E. T. Bimonthly APPORTIONMENT OF INCOME COMMON OPERATIONS IN
IVAS annual exports exempt transactions for operations excluded by untaxed trans
actions for transactions taxed at the rate of 1.6% for transactions taxed at the
rate of 3% for transactions taxed at the rate of 5% for transactions taxed at t
he rate of 10% for transactions taxed at the rate of 16% for transactions taxed
at the rate of 20% for transactions taxed at the rate of 25% for transactions ta
xed at the rate of 35% VAT DISCOUNTED TOTALS 716 460 050 42,244,532 GROSS 426 10
3 982 1,732,370 10,871,692 RETURNS
183 590 104
399.778
1,379,270,360
2132148
Corresponds to the values canceled for VAT on the acquisition costs, expenses an
d imports that carry the right to discount and income generation transactions su
bject to sales tax.
PURCHASES AND / OR SERVICES untaxed imports taxed Taxed imports at the rate of 1
.6% Taxed at the rate of 3% taxed at the rate of 5% taxed at the rate of 10% tax
ed at the rate of 16% taxed at the rate of 20% taxed at a rate of 25% taxed at t
he rate of 35 % Reteiva simplified scheme the rate of 10% Reteiva simplified sch
eme the rate of 16% Shopping and services unencumbered TOTAL
26,324,568 GROSS
RETURNS
45,239,594
2.800
265 132 983 336 697 145
2.800
Discounted VAT COMMON OPERATIONS (Accounted as transient) PURCHASES AND / OR SER
VICES OF TWO MONTHS
Corresponds to the values canceled for VAT on the acquisition costs and expenses
(fees, consultancy, supervision, paperwork, leases and right at a discount and
they are common to exempt income generation, excluded and taxed.
PURCHASES AND / OR SERVICES Taxed at the rate of 1.6% Taxed at the rate of 3% Ta
xed at the rate of 5% taxed at the rate of 10% taxed at the rate of 16% taxed at
the rate of 20%
124 286 275
TRANSIENT VAT 19,885,804 -
Taxed at a rate of 25% taxed at the rate of 35% Reteiva simplified scheme the ra
te of 10% Reteiva simplified scheme the rate of 16% TOTAL
92,146,999 216 433 274
27,257,564 7,371,760
. Eration COMMON
GENERATED VAT
% 3.07% 51.90% 30.94% 0.79% 0.00% 0.00% 0.00% 0.00% 13.30% 0.00% 0.00% 0.00% 100
.00%
29,310,452 29,310,452
s which carry the right to a discount and are intended to
DISCOUNTED VAT 7,237,887 7,237,887
soria, supervision, paperwork, leases etc.) conferring
PROPORTION OF VAT DISCOUNTED COST / EXPENDITURE 6,309,906 13,575,898 -
18,608,547 5,032,649
8,649,017 2,339,111
bavarcontadores@hotmail.com bavarcontadores@gmail.com
Gross Income Gross Income exports exempt transactions (country)
27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53
54 55 56 57 58 59 60 61 62 63 64
42,245,000 716,460,000 426,104,000 10,872,000 183,590,000 1,379,271,000 2,132,00
0 1,377,139,000 0 26,325,000 261,673,000 265,133,000 553,131,000 3.000 553,128,0
00 0 0 0 0 29,310,000 0 0 0 0 29,310,000 0 20,814,000 5,033,000 64.000 25,911,00
0 3,399,000 0 4,272,000 175.230 0 0 0 1,048,230
Private Settlement Revenue Shopping
Gross income from operations excluding gross income untaxed transactions taxable
gross income from operations Total gross Less: Sales Returns canceled, rescinde
d or resolved Total net income received during the taxable imports untaxed impor
ts Shopping and Services Shopping and services taxed untaxed Total gross purchas
es and imports Less: Returns on purchases canceled, rescinded or resolved during
this period Total net purchases made during the tax generated at the rate of 1.
6% generated tax rate of 3% tax generated at the rate of 5% tax generated at the
rate of 10% tax rate generated 16% tax rate generated a 20% tax generated at a
rate of 25% tax generated at the rate of 35% VAT refund on purchases recovered r
escinded or annulled Total resolved tax generated by taxes deducted from taxable
transactions import operations taxes deducted for purchases and taxable service
s (other than imports) Tax withheld in operations with simplified VAT scheme for
returns on sales resulting canceled, rescinded or resolved Total Balance deduct
ible taxes to pay for the period fiscal balance in favor of fiscal balance for t
he previous fiscal period (not requested for return or compensation) Withholding
VAT that you have had to pay tax balance Penalties Total Total balance due or c
redit balance