In an international sale of goods, the tax recognition of
revenue will take place in the moment in which the accrual for
accounting purposes occurs
The Tax Authority referred to the recognition of tax revenue in
an international sale of goods
In its revenue ruling 0588 of March 17th 2017, the Colombian Tax
Authority –DIAN-, clarified that according to section 21-1 of
the Tax Code, in determining the value of tax income, among other
items, taxpayers which are obliged to maintain accounting records
(corporations and other entities) shall apply the systems of
recognition and measurement, under the technical accounting
regulatory frameworks in force in Colombia (IFRS). Likewise,
section 28 of the Tax Code determines that income earned for tax
purposes is the income accrued in the year or taxable period, for
taxpayers obliged to maintain accounting records.
