Last week, Colombian businessman Mario Hernández shook social networks by posting a video at the Madrid airport (Spain) accompanied by a message in which he said: “VAT refund to tourists in Europe very important that it works in Colombia”.
According to the businessman, this measure attracts many people and promotes tourism. “Very important! In Colombia the return of VAT to tourists, here in Spain, this brings a lot of people. eye! former president Duque approved it, very important!” , he stated on the recording.
Although his message had detractors and people who applauded him, the truth is that VAT refunds for foreign tourists already exist.
The VAT refund to foreign tourists is a benefit established in Law 300 of 1996 which consists of returning VAT to tourists who buy taxed goods within national territory.
(A company arrives in the country to digitize VAT refunds for tourists).
This measure applies to foreigners without Colombian nationality who enter Colombia with a tourist permit granted by the Colombian immigration authority.
To access the VAT refund on purchases of goods, foreigners must request the electronic invoice for each purchase they make.
“If you make purchases of goods taxed with VAT, you can request a refund when the value of the purchase per invoice is greater than 3 Tax Value Units (UVT), as long as you take the goods with you at the time you leave the country, which may be verified by the Dian, and the purchase is supported by an electronic invoice”says the Directorate of National Taxes and Customs (Dian) on its website.
It should be noted that the Tax Value Unit (UVT) is a measure of value based on an amount in Colombian pesos established by the national government that is readjusted annually according to the variation of the Consumer Price Index. For the year 2022 the value of the UVT is $38,004 COP.
(This is how they recovered resources from the ‘VAT refund cartel’).
Regarding the maximum value that can be returned for a refund request, it is 200 Tax Value Units (UVT). The financial and operating costs incurred will also be deducted from the value to be returned.
Foreign visitors can request a VAT refund at the time of leaving the country, before carrying out the baggage check, by going to the Dian offices, located in the country’s airports.
In order for the return request to be received, you must submit the return request through the mechanism and conditions indicated by the Dian, which you can consult in this link.
BRIEFCASE
