Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 19% | 5% | Zero-rated (0%) and exempt |
The local name for VAT in Colombia is Impuesto sobre las ventas (IVA).
There are basically 2 VAT rates in Colombia:
- Standard VAT rate is 19%
- Reduced VAT rate is 5%
Recent developments
For more information about (recent) rate change developments in Colombia, please click HERE.
Standard rate: 19%
This rate applies for all transactions that take place in Colombia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 5%
Examples of goods and services taxable at 5% rate
- Toasted coffee
- Wheat
- Sugar cane
- Cotton seeds
- Soy
- Rice
- Prepaid health services
- Health insurance
- Storage of agricultural products
Zero rate (0%)
Examples of goods and services taxable at 0% (e.g., exempt supplies)
- Exports of movable, tangible goods if the exporter is registered with the National Tax Registry (RUT), has received a taxpayer identification number and can, at the request of tax authorities, provide proof of agreements to provide exports, such as contracts, offers or purchase orders. It also includes sales to international trading companies, which are considered as an export activity.
- Services rendered exclusively in Colombia and used exclusively abroad by companies or individuals who are not engaged in business in Colombia (Companies not engaged in business in Colombia include companies that are direct beneficiaries of the services, the VAT exemption does not extend to related parties such as a subsidiary, branch, affiliate, representative office or home office in Colombia.)
- Tourism, if rendered to nonresidents in Colombia used in the country for the benefit of a company that is registered in the National Tourism Registry and promotes tourism by engaging in certain qualified activities
Examples of exempt supplies of goods and services (e.g. excluded supplies)
The term “excluded supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
- Interest and financial income from credit operations
- Education services provided by preschool, primary, middle and intermediate, higher and special or non-formal education establishments, recognized as such by the national government
- Energy and public energy services based on gas or other inputs
- Water for the provision of public water supply and sewerage services, public water supply and sewerage services, public sanitation services and public garbage collection services
Source EY
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on August 30, 2021.
