Colombia Offers Hybrid Vehicle VAT Refund to Owners Who Meet One Requirement
Colombia is offering a hybrid vehicle VAT refund worth millions of pesos to drivers who purchased eligible hybrid vehicles, provided those owners complete one certification step that many buyers overlook at the time of purchase. The benefit applies to vehicles equipped with HEV (Hybrid Electric Vehicle) or PHEV (Plug-in Hybrid Electric Vehicle) technology, and it […]
Colombia has introduced a hybrid vehicle VAT refund program to incentivize the adoption of cleaner transportation options. Eligible owners of hybrid and electric vehicles can claim a refund after securing certification from the Mining and Energy Planning Unit (UPME). This refund applies to both a reduced VAT rate of 5% under Article 468-1 of the Tax Statute and a full VAT exclusion under Articles 11 and 12 of Law 1715 of 2014.
UPME evaluates the vehicle's efficiency in reducing fuel consumption and environmental impact before issuing the certification. Owners can retroactively claim the refund, even if they have already paid the full tax upfront. To claim the refund, owners must provide the UPME certificate, the original sales invoice with VAT details, a certified breakdown of the invoice, a bank certification for fund deposit, and evidence that they have not claimed a refund before.
The refund request must be submitted within five years of the invoice issuance date. This program is designed to encourage the purchase of hybrid and electric vehicles by offering a two-tier tax benefit, making it an attractive incentive for Colombian car buyers.
Written by urgent.news from Colombia One's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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