Indirect tax - Colombia

In Colombia, the Value Added Tax is the main indirect tax, which is monitored and controlled by our tax authority, called DIAN.

It is a tax on consumption which is applied during the production and distribution process to most goods and services, thus, is paid by the final consumer, being responsibility for the collection the person that invoice the goods and services, and the responsibility for the payment the acquirer of them.

It also applies for the imported goods, and services rendered by non-residents.

The general rate is 19% and is applied in the moment of the billing.

The Colombian regulation in force dispose some benefits for exporting businesses, which have the right to ask for the reimbursement of the credit balance of the VAT in the corresponding declarations. 

Depending on the income of the previous year, VAT declarations has to be submitted every two or four months.

 Yes, there is, and it depends on the income received in the year.

Applies only for people and local businesses, it does not apply for non-residents businesses.

Some computer devices are VAT excluded, also computation services in the cloud.

It does not apply in Colombia.

Depending on the income of the previous year, VAT declarations has to be submitted every two or four months.

Yes, there are penalties for late submission of the declarations and is calculated based on the tax to pay, if there is not a tax to pay then is over the income and if there is no income, then is calculated over the equity.

In relation to VAT, there are no additional declarations required.

Yes, there are penalties due if the person who submitted the declaration is not the indicated, the information filed on the declaration is inaccurate, wrong filling, reduce the balance in favour, or for not updating the information toward the tax authority (DIAN).

It does not apply in Colombia.

A VAT invoice must:

• be denominated expressly as sale invoice
• show the last and first name or business name and Tax ID Number of the seller or who provides the service
• show the last and first name or business name and Tax ID Number of the acquirer of the goods or services, together with the discrimination of the VAT paid
• show a number that corresponds to sequential numeration system of invoice sales
• show the expedition date
• feature a specific or generic description of the goods sold or services rendered
• include the total value of the operation
• show the name or business name and Tax ID Number of the printer of the invoice
• indicate the quality of the withholding agent of the sales tax.

It does not apply in Colombia.