IVA Refund Application DIAN Colombia

The IVA Refund Application DIAN Colombia (Solicitud de Devolución de IVA ante la DIAN) is the formal procedure by which taxpayers responsible for the impuesto sobre las ventas (IVA — value added tax) who have generated favorable balances in their bimonthly or quarterly IVA declarations, or who have the right to the refund of IVA paid on the acquisition of goods and services, request from the Dirección de Impuestos y Aduanas Nacionales (DIAN) the reimbursement of those amounts, in accordance with the procedure established in Articles 850 to 865 of the Estatuto Tributario and Decreto 1625 de 2016 (Decreto Único Reglamentario en materia tributaria).

In Colombia, IVA has a general rate of 19% under Article 468 of the Estatuto Tributario. However, certain goods and services are taxed at differential rates (5%), are exempt from IVA with the right to recovery of tax paid in the production chain (tarifa 0%), or are excluded from IVA without the right to recover input tax (Articles 477–485 ET). When a responsible party makes sales primarily of exempt goods or exports (which are also exempt from IVA under Article 481 ET), the IVA paid on the purchase of inputs generates a favorable balance that can be requested in refund or compensation.

The main beneficiaries of the right to IVA refund in Colombia are: exporters of goods and services, who have the right to a refund of the IVA paid on goods and services used directly in the production of the exported good; producers and marketers of exempt goods listed in Article 477 ET (agricultural products, meats, eggs, milk, certain medicines); acquirers of goods charged to donations or loans from international organizations; and diplomatic missions accredited in Colombia who have the right to a refund of IVA paid on their acquisitions in accordance with the Vienna Conventions.

Resolución DIAN 151 de 2022 updates the procedure for refunds and compensations, implementing digital tools for filing requests through the Muisca portal and the system for managing refund requests (SIED). The DIAN has a term of 50 working days to decide on the refund request, or 30 working days if the applicant has a verified favorable balance through an audit (Article 855 ET).

The IVA Refund Application DIAN Colombia is required in the following cases.

Goods exporters: Every company or natural person that exports goods has the right to request a refund of the IVA paid on the acquisition of raw materials, inputs, services, and fixed assets used directly in the production of the exported goods, under Article 481 ET. The request must be filed bimonthly, within one year following the period in which the favorable balance was generated, under Article 854 ET.

Service exporters: Providers of tourist, IT, financial, and other services exported under Article 481 literal e) ET have the right to a refund of the IVA paid on their inputs. Colombia has significantly advanced the recognition of service exports after Ley 1943 de 2018 and the modification of Article 481 ET.

Producers of exempt goods: Taxpayers who produce exempt goods of the basic family basket under Article 477 ET do not charge IVA on their sales, but do pay IVA on the acquisition of their inputs and assets. This excess deductible IVA generates favorable balances that can be requested in refund.

Taxpayers with accumulated favorable balances: When an IVA responsible party accumulates favorable balances over several consecutive periods, they can request the refund or compensation with other tax obligations under Article 815 ET.

Diplomatic missions and international organizations: Embassies, consulates, and international organizations accredited in Colombia have the right to a refund of the IVA paid on acquisitions of goods and services for official use, under the Vienna Conventions of 1961 and 1963 and the headquarters agreements signed with Colombia.

The IVA Refund Application DIAN Colombia must contain the following elements for its admissibility and timely resolution.

Applicant identification: Name or corporate name, NIT with check digit, tax address, email, telephone, and name of legal representative or authorized agent. Data must correspond exactly to the current RUT registered with the DIAN.

Concept of the refund: Express indication of the legal basis of the refund: exports (Article 481 ET), exempt goods (Article 477 ET), accumulated favorable balance (Article 815 ET), diplomatic mission (Vienna Convention), or other. The concept determines the supporting documents required by the DIAN and the applicable resolution terms.

Requested period: Bimonthly or quarterly IVA period to which the favorable balance whose refund is requested corresponds, with reference to the filing number of the declaration filed in the Muisca portal and the value of the favorable balance declared in the corresponding line of Form 300.

Refund amount: Exact amount requested in Colombian pesos, which cannot exceed the favorable balance declared in the IVA declaration for the period. If the applicant prefers to offset part of the balance with other tax obligations, they must indicate the tax and period to offset under Article 815 ET.

Guarantee or policy: For requests exceeding the threshold established by the DIAN (currently $1,000,000,000 for frequent exporters), a bank guarantee or insurance company policy may be required under Article 860 ET, unless the applicant is a Gran Contribuyente or a habitual exporter with a special DIAN qualification.

Supporting documents: IVA declarations for the requested periods, export declarations (DEX) or export invoices, purchase invoices with deductible IVA duly numbered in accordance with Resolución DIAN 042 de 2020 (electronic invoicing), and bank account certificates for the transfer of the refund amount.

Forms-legal.com provides this model with the updated requirements of Resolución DIAN 151 de 2022.