Colombia: Expedited tax refund procedure (COVID 19)

Colombia: Expedited tax refund procedure (COVID 19)

A legislative regulation (10 April 2020) provides relief in the form of an expedited tax refund procedure as a response to the coronavirus (COVID-19) pandemic.

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Taxpayers—for income tax and value added tax (VAT) purposes—that are not classified as having a “high tax risk profile” are eligible to obtain a tax refund or to offset the amount of the refund against other tax debts within 15 business days following the date when they file an application for the tax refund or for the tax offset. The tax refund procedure will be available during the course of the COVID-19 emergency.

For these purposes, the concept “high risk” is not defined, but is based on certain objective elements (such as the taxpayer's history and other information). If a risk of tax evasion or other identifiable risk is identified, the tax authority will suspend the refund or offset process.

Taxpayers are not required to submit certain information (e.g., a detailed list of costs, expenses, and deductions in support of the refund claim), but after the end of the COVID-19 emergency period, taxpayers will need to submit such a list within 30 calendar days after the date when the emergency is declared to be over, without the need for a request from the tax authority. A failure to submit this information will be subject to penalties.

The tax authority is also considering other tax refund or tax offset procedures, including possible refunds or offsets for accounts that have been suspended for 90 days.

Read about other tax relief measures in Colombia in response to COVID-19: TaxNewsFlash


For more information, contact a tax professional with the Tax Group of KPMG’s Latin American Markets or with the KPMG member firm in Colombia:

Alfonso A-Pallete | +1 (212) 954 3852 | apallete@kpmg.com

Ricardo Ruiz | +57 16 18 8000 | ricardoaruiz@kpmg.com

Eric Thompson | +57 16 18 8000 | ericthompson@kpmg.com

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