The National Government, through decree 963 of July 7, 2020, regulated the automatic refunds of credit balances determined in the income tax and VAT returns.
According to the Decree, the term to recognize the automatic refund will be 15 working days counted from the day after the application was filed.
with that in mind, taxpayers who will be eligible for automatic refund will be those who meet the following conditions:
-
They do not represent a high risk according to the DIAN's analysis system.
-
Support twenty-five (25%) of the costs or expenses and/or the discountable VAT, through the electronic sales invoice system; notwithstanding that taxpayers may support higher costs or expenses and/or discountable VAT with electronic invoices.
-
They must comply with the general and special requirements outlined in the Single Regulatory Decree 1625 of 2016 for the submission of the request for refund and/or compensation.
Note that according to the decree, for determining the percentage mentioned in paragraph 2, costs and expenses that cannot be supported by the electronic invoicing mechanism shall be excluded from the calculation to be supported by it
Finally, the decree sets forth the special requirements that must be met by requests for refund and/or compensation of the balances determined in the income tax return.