Although it was something that had already been announced, andhe National government made public, in less than 24 hours, the repeal of the day without VAT which was scheduled for this friday December 2, 2022.
The day was the third of this style that was scheduled for the current year. The first were on March 11 and June 17.
The fall of the day without VAT was made official through decree 2357 of November 30, 2022, signed by the Minister of Finance, José Antonio Ocampo, and which knocked down “numeral 3 of article 1.3.1.10.16 of Chapter 10 of Title 1 of Part 3 of Book 1 of Decree 1625 of 2016 Sole Regulatory Tax Matter“, which refers to discount day.
Among the reasons set out in decree 2357 for the repeal of the day without VAT are a series of recommendations that the Subdirectorate of Economic Studies of the Special Administrative Unit of the National Tax and Customs Directorate (Dian) exhibited on November 16.
The Sub-directorate advised that the conference was not recommended because there were less than 15 days left for its realization, “which would imply considerable administrative and preparation costs” and because, “to date, it is not clear if these tax holidays are a tool that is justified in terms of their greater benefits compared to their possible costs“.
The entity added in its conclusions that increased sales these days is “more related to other types of instruments that are born clearly from merchants to stimulate their activity, taking advantage of the announcement of the tax subsidy to do so”, which means, according to the decree, that the days without VAT are used to offer promotions “that end up explaining the higher values in sales and that could have been implemented without the need to waive VAT collection“.
Day without VAT
Sales of $10.61 billion and a report of 7,270,181 transactions through electronic invoice was the general balance of the second day without VAT of 2022, which was fulfilled on June 17.
The figure met the expectations announced by Fenalco’s unionized merchants and, according to data from the Dian Electronic Invoice system, represented a 16.6% increase in value and 6% in number of transactions regarding the first day of the day without VAT of 2022, which took place on March 11.
The days without VAT were born in 2020, in the mandate of Iván Duque, as a way to boost the Colombian economy (the government argued at that time), hit by the covid-19 pandemic.
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