Sales tax and What You Need to Do



Assets, as part of the national territory in each country, must be governed by local law regardless of their owners, by virtue of the right of State sovereignty that would not allow in such a transcendental matter the interference of foreign law and that is why what article 20 of the Civil Code prescribes: The assets located in the territories, and those located in the states

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It will be then the Colombian law that will govern all legal relation referred to the goods located within the national territory; it is it that regulates the nature and extent of the real rights, the ways of acquiring and transmitting, regarding the possession, possession and enjoyment of the goods, will impose such imperatives as those of the free alienation of real estate, the prohibition of that these belong to foreign governments; limiting successive usufructs and trusts; the non-transferability of the rights of use and habitation, the regime of legal easements, solemnities for the transfer of real estate and other rights, expropriation for reasons of public utility, etc. You can calculate sales tax and have the best options here now.

  • However, the Tax Statute indicates the events that generated the tax (Art. 420 et seq.) And then established certain rules to be followed in eventual cases in which the tax could be generated.
  • In the case of the sale of movable tangible goods, it is clear that the territoriality principle requires that the material situation or location of the goods be taken as a reference.

In the case of the provision of services, the Law is clear when indicating the spatial element, the national territory. What interests here for the collection of the tax is that the service is provided within the territory of the State and does not apply to services provided abroad. The determining factor is the place where the corresponding obligation to materialize, at least at the beginning, even if the performance is completed or perfected outside the national territory. Later the rules that our Tax Statute for the provision of services will be analyzed.

However, as an exceptional matter, Law 488 of December 24, 1998, (article 53) introduced an amendment regarding the sales tax, specifically regarding the provision of services that affects the principle of territoriality of the law as regards services exhaustively listed in the Tax Statute article 420, paragraph 3 numeral 3 even when executed from abroad in favor of users or recipients located in the national territory, are understood to be provided in Colombia and therefore generate sales tax.

Mixed Statute

 In the mixed Statute, both personal and real considerations are taken into account, that is, the Law takes into account the quality of the taxpayer (economic and legal) as the nature of the property.

Sales Tax Generating Facts

By generating fact is understood the factual budget expressly defined in the Law, whose realization originates the birth of the tax obligation.



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