Colombian VAT rates and VAT compliance

VAT rates in Colombia

The standard VAT rate for Colombia is 19%, with a reduced rate for basic foodstuffs; health services and insurance, a nil VAT rate for some goods. Exports of goods or services; tourism services for non-residents; some financial services and insurance; some agriculture supplies; electricity and natural gas supplies; medicines are all exempt.

There is a further Consumption Tax on:

Restaurant Services (8%);
Mobile phones (4%)
Luxury goods (16%)

Colombia VAT rates
Rate	Type	Which goods or services
19%	Standard	All other taxable goods and services
5%	Reduced	Reduced rate includes: certain sales of new real estate; cotton; timber; certain foodstuffs; agricultural supplies; agricultural insurance; medical insurance; electric and hybrid vehicles; cleaning; coffee
0%	Zero	Exports; livestock; meat; certain foodstuffs; sales of tourism packages to foreign visitors; certain books and magazines; some military and police equipment; sales to Colombian free trade zones

Colombian withholding VAT

In certain circumstances, the purchasers of taxable goods or services are obliged to withhold 15% of the VAT due. This reverse charge is a type of split payment. These include:

Government offices
Where the vendor is non-resident
Where the customer and vendor are within the common VAT regime (100% of the VAT due)

Colombian VAT compliance

There are detailed rules controlling the recording and processing of transactions for VAT. These include guidelines on:

Invoice requirements, including the requirement for credit notes;
Foreign currency reporting and translation based on Central Bank rates – payments must be in Columbian pesos;
Export invoices, and proof for departure of supplies e.g. customs documents and DEX (Declaración de Exportación);
E-invoices from June 2018;
Language requirements;
Credit notes and corrections; and
What accounting records must be maintained and for how long.

VAT Invoices must include the following information: