Reconsideration of VAT Treatment in Compensation for Lost Goods in Transport

• INT 0446 issued by the DIAN on March 4, 2024 revises the treatment of VAT in the indemnification for loss of goods in transportation.
• Loss of goods during transportation does not trigger VAT as it does not meet the requirements set in article 420 of the Tax Statute.
• Indemnification for loss of taxed goods can be treated in two ways:
• If the transporter acquires goods from a third party and uses them for indemnification, VAT is triggered for the transporter.
• If the transporter indemnifies with the value of the goods, VAT is only triggered when the indemnified party acquires the lost goods.

Source: amezquita.com.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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