⚖️ Subject:
Eligibility for VAT and income tax benefits under Law 1715 of 2014 for individuals purchasing hybrid or electric vehicles for personal use.
Legal Question:
Do individuals who buy hybrid or electric cars for personal use qualify for:
- Special income tax deductions, and
- VAT exclusions under Articles 11 and 12 of Law 1715 of 2014?
DIAN’s Ruling:
No. Personal acquisition of hybrid or electric vehicles does not qualify for these tax benefits.
Key Points:
- The benefits in Law 1715 are intended for investments in energy generation projects using non-conventional energy sources (FNCE).
- To qualify, the vehicles or equipment must be part of a certified energy project and not for personal use.
- Such vehicles are still subject to a reduced VAT rate of 5%, as per Article 468-1 of the Tax Statute.
Context:
Law 1715 promotes sustainable energy development. Its tax incentives are designed to support research, development, and implementation of FNCE projects—not general consumer purchases.
Source gov.co
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