- VAT Overview and Rates: Colombia’s VAT system, governed by the Colombian Tax Statute, includes a standard rate of 19% for most goods and services, a reduced rate of 5% for essential goods, and a 0% rate for exports and certain basic goods. All businesses, regardless of residency, must register for VAT if conducting taxable activities in Colombia.
- Registration and Compliance: Non-resident businesses must have a fiscal representative and are required to register for VAT without a threshold. VAT filings are bi-monthly or quarterly, with deadlines set by the Colombian tax authority, DIAN. E-invoicing is mandatory, following DIAN’s specified format.
- Digital Services VAT: VAT applies to cross-border electronically supplied services at a rate of 19%, with no registration threshold. Foreign digital service providers must register for VAT when supplying services to consumers in Colombia, and compliance includes digital reporting of VAT transactions through DIAN’s electronic system.
Source VAT IT Compliance
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