Update on the VAT proceedings related to fuel imports

Rhea-AI Summary

Ecopetrol (NYSE:EC) received Resolution 000571 from the Colombian tax authority (DIAN) confirming a prior Official Correction Assessment that mandates payment of Value Added Tax (VAT) on gasoline imports plus a penalty totaling COP 5.3 trillion, plus interest for late payment accrued between 2022 and 2024. Ecopetrol states it disagrees with DIAN's interpretation and expects to pursue legal actions under applicable tax and customs rules while continuing collaborative engagement with the authority. The company reaffirms commitment to comply with tax and customs obligations and to respect final decisions by competent authorities.

Positive

• None.

Negative

• Tax assessment of COP 5.3 trillion plus interest
• Assessment applies to gasoline imports covering 2022–2024
• Disagreement with DIAN creates ongoing legal uncertainty
• Potential material cash outflow depending on final resolution

Argus Jan 26 session

+1.44% close to close Open Argus

Details

News Market Reaction – EC

On Jan 26, the first trading day after this news, EC closed 1.44% above the previous close.

Data tracked by StockTitan Argus for the Jan 26 session.

Key Figures

VAT and penalty amount: COP 5.3 trillion Interest period: 2022–2024 Employees: more than 19,000 +5 more

VAT and penalty amount

COP 5.3 trillion

VAT on gasoline imports and penalty in DIAN Resolution 000571

Interest period

2022–2024

Late-payment interest accrual period on VAT dispute

Employees

more than 19,000

Ecopetrol workforce size described in company profile

Hydrocarbon production share

more than 60%

Share of Colombia’s hydrocarbon production attributed to Ecopetrol

Stake in ISA

51.4%

Ownership of ISA shares expanding activities in transmission and concessions

Current share price

$12.50

Pre-news price level from market context

52-week range

$7.795–$12.98

Low and high from 52-week trading range

Market capitalization

$25,081,183,767

Equity value before publication of VAT dispute update

Historical Context

5 past events · Latest: Jan 20

5 events

1. Jan 20

   Board nomination update

   24h Move

   +2.5%

   Hydrocarbon-producing departments nominated Ricardo Rodriguez Yee for an eighth board seat.

2. Jan 16

   Board nomination update

   24h Move

   +4.9%

   Employees elected Cesar Eduardo Loza Arenas as their board candidate under company rules.

3. Jan 07

   Labor negotiations

   24h Move

   +2.8%

   Company discussed renegotiations of a collective bargaining agreement with labor representatives.

4. Dec 29

   Strategic evaluation

   24h Move

   +1.6%

   Company commented on preliminary, non-binding assessments of inorganic growth opportunities in Brazil.

5. Dec 29

   Labor agreement process

   24h Move

   +1.6%

   Update on early collective bargaining process initiated by union ahead of agreement expiration.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

value added tax (vat), forward-looking statements

2 terms

value added tax (vat) financial

"mandated the payment of certain Value Added Tax (VAT) on gasoline imports"

A value added tax (VAT) is a consumption tax added to the sale price of goods and services and collected by businesses on behalf of the government. Think of it like a toll charged at each step of making and selling a product: businesses collect the tax from customers, pass it on to the tax authority, and may offset what they paid on purchases. VAT matters to investors because it affects a company’s pricing, cash flow, reported sales and expenses, profit margins, and compliance costs, and can influence competitiveness in different markets.

forward-looking statements regulatory

"This release contains statements that may be considered forward-looking statements within the meaning of Section 27A"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOGOTA, Colombia, Jan. 23, 2026 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the "Company" or "Ecopetrol") reports that on January 22, 2026, the Colombian National Tax and Customs Authority ("DIAN") notified Ecopetrol of Resolution 000571 (the "Resolution"), in accordance with its interpretation and customs procedures. By means of this Resolution, DIAN confirmed its prior decision issued in the Official Correction Assessment 6224-2078 dated August 25, 2025, which mandated the payment of certain Value Added Tax (VAT) on gasoline imports and a penalty, which together amount to COP 5.3 trillion, plus interest for late payment, accrued between 2022 and 2024.

As previously communicated, Ecopetrol has expressed its disagreement with DIAN's decision and interpretation of the laws. Given that such difference in regulatory interpretation between DIAN and the Company remains, Ecopetrol expects to pursue the appropriate legal actions in accordance with current tax and customs regulations.

This legal dispute has been managed in a collaborative manner and within a framework of joint work between the company and the tax authority. Ecopetrol reaffirms its commitment to fully comply with its customs and tax obligations and will respect the decisions issued by the competent authorities in resolving this matter.

------------------------------------- 

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. 

For more information, please contact:

Investors Relations Office
Email: investors@ecopetrol.com.co  

Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co 

 

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SOURCE Ecopetrol S.A.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Ecopetrol (NYSE:EC) announce on January 22, 2026 about VAT proceedings?

DIAN issued Resolution 000571 confirming a VAT assessment and penalty totalling COP 5.3 trillion plus interest related to gasoline imports.

Which years does the DIAN VAT assessment for Ecopetrol (NYSE:EC) cover?

The assessment and interest relate to import activity accrued between 2022 and 2024.

Will Ecopetrol (NYSE:EC) pay the COP 5.3 trillion VAT immediately?

Ecopetrol has stated it disagrees with DIAN's interpretation and expects to pursue legal actions under tax and customs regulations.

How might the DIAN VAT ruling affect Ecopetrol (NYSE:EC) financially?

The ruling creates potential for a material cash outflow and contingent liability until the dispute is resolved.

Has Ecopetrol (NYSE:EC) said how it is managing the dispute with DIAN?

The company says the dispute has been managed collaboratively and it will continue to engage with the tax authority while pursuing legal remedies.

Does the DIAN Resolution 000571 represent a final court judgment against Ecopetrol (NYSE:EC)?

No; the company describes the Resolution as an administrative decision and plans to seek resolution through applicable legal channels.