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Colombian executive branch presents a new tax reform bill before the congress

VAT measures

  • Increase of the VAT rate for hybrid vehicles to 19% (up from 5%).
  • Exemption for tourism and hotel services in municipalities with fewer than 200,000 inhabitants.
  • Zero-rate treatment for goods of public passenger transport vehicles and public or private freight transport vehicles that meet EURO VI or equivalent emission standards, or use low emission/non-polluting technologies, as from FY 2026 until FY 2029.
  • Online gambling, currently exempt, would become taxable at the general 19% rate.

Source PwC

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