VAT in Colombia guide

Colombian VAT for digital service providers

As of 1 January 2017, VAT addresses digital services as a taxable event. Taxation is applied through a withholding mechanism in electronic payments. Foreign service providers that render digital services from abroad must register as VAT responsible with the Colombian Tax Office. For this purpose, they must obtain a Colombian Tax ID. These entities must collect the VAT due and file the corresponding VAT return to the tax authorities.

List of digital services that are the subject of Colombian VAT

Taxed services include:

• Digital supply of audiovisual services (including but not limited to music, video, movies, games and transmission of any event);
• Online publicity services;
• Online training or education services;
• Rights for use or exploitation of intangibles;
• Other digital or electronic services for users located in Colombian territory.

Late – registration penalties

A penalty corresponding to 1 tax unit (UVT), which in 2019 is COP 34,270, is levied for each day of late registration.