VAT
- Reduce number of excluded and exempted goods and services
- Ensure that the VAT compensation mechanism reaches the most vulnerable population
- Keep a 0% VAT for basic needs in the short term (while the compensation mechanism is improved)
- Increase the current reduced VAT rate from 5% to a rate in the range of approximately 10% to 12% (currently, the standard rate for VAT purposes is 19%)
- Credit input VAT paid on investments in fixed assets against output VAT (currently, input VAT on investments in fixed assets may be creditable for income tax purposes rather than for VAT purposes)
- Eliminate the national consumption tax and increase green taxes and taxes on unhealthy activities/goods
- Tax goods and services in free trade zones (in particular special permanent free trade zones) under the standard VAT regime
Source EY
Latest Posts in "Colombia"
- DIAN Shuts Down 47 Businesses in Bogotá for Electronic Invoice Violations
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- Colombia Proposes Unified 1.5% Withholding Tax for All Electronic Payments and Card Transactions
- DIAN Shuts Down 47 Bogotá Businesses for Failing to Issue Electronic Invoices in October 2025
- Colombia Updates Tax Reporting Rules for Domestic and Foreign Digital Platform Operators
