Colombia’s National Tax and Customs Directorate (DIAN) has confirmed that individuals may qualify for tax incentives when purchasing hybrid or electric vehicles for personal use, reversing an earlier interpretation issued only one month earlier.
In Concept No. 013853 of 5 September 2025, published on 8 September 2025, DIAN reconsidered its previous position and concluded that eligible hybrid and electric vehicles can qualify as investments in energy efficiency management (Gestión Eficiente de la Energía – GEE) under Law 1715 of 2014.
Previous Interpretation Withdrawn
The new concept expressly revises DIAN’s earlier Concept No. 012101 of 5 August 2025, which had concluded that the mere acquisition of hybrid or electric vehicles by individuals for personal use did not entitle taxpayers to the special income tax deduction or VAT exclusion provided by Articles 11 and 12 of Law 1715.
Following a new legal analysis, DIAN determined that such a blanket restriction was not supported where the relevant statutory and certification requirements are satisfied.
Eligible Tax Benefits
Under the revised interpretation, individuals purchasing qualifying electric vehicles or hybrid vehicles, including plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV), may access:
the special income tax deduction available under Article 11 of Law 1715 of 2014; and
the VAT exclusion established by Article 12 of the same law.
The authority concluded that these vehicles may constitute energy-efficiency investments because they are included among the assets recognized by Colombia’s energy planning framework as contributing to efficient energy management.
Certification Requirement Remains
DIAN emphasized that access to the incentives depends on obtaining certification from the Mining and Energy Planning Unit (UPME).
The tax authority noted that UPME is responsible for certifying investments in energy-efficiency measures and maintains the official list of eligible goods and services. UPME Resolution 135 of 2025 includes electric and hybrid vehicles among the assets that may qualify as energy-efficiency investments.
Alignment with Energy Policy
The revised interpretation also reflects the treatment of electric mobility measures under Colombia’s PROURE 2022-2030 Energy Efficiency Action Plan, which identifies electric vehicles as eligible energy-efficiency initiatives.
By recognizing personal-use hybrid and electric vehicles as potentially qualifying investments, the ruling aligns tax administration practice with Colombia’s broader energy-efficiency and sustainability objectives.
Effective Position
DIAN’s new legal thesis states that individuals acquiring hybrid or electric vehicles for personal use may benefit from the income tax deduction and VAT exclusion under Law 1715 of 2014, provided the acquisition is covered by the corresponding UPME certification.