Colombia — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
|16%||5%, 0%||Peso (COP)|
Colombia's general VAT rate is 16%, with other rates including 5% and 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Dirección de Impuestos y Aduanas Nacionales (DIAN) (http://www.dian.gov.co) in Bogotá.
Columbia has the following reduced VAT rates:
5% reduced rate on: property; foodstuffs
3% reduced rate on: livestock.
Colombia's consumption tax is called the Value-added tax (VAT), locally known as Impuesto sobre las ventas (IVA), which was introduced in December 1983.
Colombia VAT rates for 2018
- Zero-rated (exempt)
Colombia VAT number format
Businesses in Colombia that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Dirección de Impuestos y Aduanas Nacionales (DIAN), and will follow a certain format. The VAT number format is Tax identification number (NIT).
Colombia VAT return periods
Businesses in Colombia that are required to collect tax from consumers must file regular tax returns with the Dirección de Impuestos y Aduanas Nacionales (DIAN) in Bogotá. Colombia's VAT return periods are:
Colombia Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Colombia are required to start collecting and remitting tax.
- Simplified regime
- Gross income in the previous year less than USD43,000 (based on an exchange rate of COP2,800 = USD1); additional requirements apply
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Colombia are not required to collect taxes from the consumer.
Colombia VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Colombia VAT refund program, more info can be obtained from the Dirección de Impuestos y Aduanas Nacionales (DIAN).
Colombia Tax Sources & Citations
- EN: Colombia Value Added Tax
- RU: НДС
- CN: 增值税
- Colombia Dirección de Impuestos y Aduanas Nacionales (DIAN) (http://www.dian.gov.co)
- Ernst & Young global VAT tax study, Colombia (updated 2018)
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