In an order dated September 4th, 2023, the State Council issued an order for the temporary suspension of certain sections of Rulings 641 and 2390 of 2023, by which the Tax Office apparently modified the definition of the taxpayer for purposes of the Single-Use Plastics Tax, as set forth in Law 2277 of 2022.
 

The Rulings were issued in the midst of a clear contradiction in the definition of the taxable event and the taxpayer of the tax in the Law 2277 de 2022. On the one hand, the regulation establishes that the taxable event is the sale, importation or withdrawal of single-use plastics used to package goods; on the other hand, the same regulation indicates that the taxpayers are the producers or importers that manufacture or import products contained in single-use plastic containers. Additionally, it is important to mention that neither Law 2232 of 2022, by means of which the Single-Use Plastics matter is regulated, is clear on this regard.
 

In the aforementioned Rulings, the Tax Office determined that producers or importers that manufacture or import goods for their commercialization in Colombian territory that are contained in single-use plastic containers, packages or packaging, cannot qualify as taxpayers. 
 

After a preliminary review, the State Council considered that the cited rulings disregard the definitions set forth in Law 2277, in violation of constitutional principles, by modifying the definition of taxpayer created by Congress. Therefore, and until a final decision is issued, the State Council ordered the suspension of item 3 of Ruling 641 of January 20, 2023, and item 1.1. of the Ruling 2390 of March 2023. 

The analyzed order is an important milestone for producers and importers of single-use plastic since it reintroduces legal uncertainty regarding the qualification of taxpayers and taxable events. Thus, a case-by-case analysis will be necessary to assess tax application and the risks that this new order from the State Council create for producers and importers. 
 

If you require support to determine the effects of the order of the State Council in the operation of your business, please do not hesitate to contact us at impuestos@bu.com.co and ambienteynegociossostenibles@bu.com.co