Colombia: DIAN changes Calculation Base for VAT on imported finished Products

DIAN informed taxpayers about the changes to the VAT calculation base for imported finished products.


Changes to the VAT Calculation Base

Article 8 of law No. 1943 from December 28th, 2018 eliminates the difference between tax bases for the following transactions:


  • Import of finished products produced abroad
  • Import of finished products produced in a free trade zone with national components
  • Products finished before December 31st, 2012 whose export has been declared afterwards


Since January 1st, 2019, the calculation base rests on the following formula:


Calculation base = value of import tax + value of production costs                                                                                                                                                         (*without reduction of value of exported national components!)


Declaration of Goods

However, there is still a difference between declaring purely domestically produced finished goods and those including foreign components.

Article 370 of Resolution No. 4240/2000 outlines how goods from free trade zones need to be declared.


Purely domestic finished Products

Finished products that consists of 100% domestic resources or nationalized means of production do not require an import declaration. Instead, the manufacturers need to submit a goods movement form.

This form has to be validated before the goods can leave the free trade zone. The VAT on the respective assets will be shown on the invoice (factura de venta).


Finished Products with foreign Components

Goods that have been produced in free trade zones or abroad and consist of both domestic/nationalized and foreign components are required to be declared via import declaration form. This form has to fulfill the following criteria:


  • Field 83 of the declaration form will make further adjustments in US dollars that reflect the national value added (USD FOB value)
  • Additional value that has been in the free trade area or by using national raw materials sent abroad has to be recorded
  • When determining the VAT base in field 98, the value of field 78 (USD FOB value) must be added to the value of field 82 (Sum of Freight, Insurance and other USD Expenses). The resulting value must be multiplied by the value of field 58 (exchange rate) and the resulting value must be added to the value of field 94 (total tariff shown in pesos $).


The exception for invoicing and payment of customs and VAT will be based on the import code and the corresponding “codigo de observacion” (watch code).

While the new VAT base will be adjusted in the SYGA tool (system to submit import declaration forms), manual processing of the declaration forms remains permissible.


These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!