VAT is levied on:

The sale of movable goods inside of the Colombian territory.
The provision of services within Colombian territory
The import of goods into the national territory.

Therefore, if the above mentioned taxable events do not take place within the Colombian territory, the VAT will not be triggered.

Exports and some specific items are taxed at 0%.

There are no special VAT rules regarding e-commerce transactions and, therefore, if they take place within the Colombian territory, the transactions will be subject to VAT.

Colombian regulations provide special customs regimes that allow certain importations under more favorable conditions:

Short-term temporary imports

Applicable when goods are imported to meet specific needs. The maximum term that the goods may remain in Colombian territory under this regime is 6 months, extendable for up to 3 additional months, and in exceptional situations for up to another 6 additional months. Imports under this regime are not subject to VAT and customs duties.

Long-term temporary imports

This type of import applies to capital goods and any accessory or spare parts, as long as they constitute one single shipment. The maximum term for the goods to remain in the country is 5 years. Customs duties and VAT will be payable in bi-annual installments, which must be paid only while the goods are within the national customs territory.

Plan Vallejo: Special Import-Export regime

Under these programs, imported capital goods, raw materials, inputs and parts benefit from tax concessions. These benefits are subject to compliance with a number of conditions related to the exportation of finished goods or services by the beneficiary.

Plan Vallejo for Raw Materials

The plan grants total or partial suspension of VAT and customs duties on raw materials, to be totally or partially exported after having undergone a transformation or manufacturing process.

Plan Vallejo for Capital Goods of the Agriculture Sector

This scheme allows the importation of capital goods and spare parts with no tariff and the deferral of the payment of the VAT for products of the agricultural sector that do not benefit from any government subsidies.

Plan Vallejo Junior

Grants the exporter of any kind of goods the right to replace, through a new import, with the suspension of custom duties, the raw materials or inputs that have been used in the production of such exported goods, when all customs duties were originally paid (tariffs and VAT) upon the initial import. This right must be requested within a term of 12 months after the shipment of the exported goods.

Powerful Tax Solutions

Tax Rules Engine

Collaboration Tools

Latest Tax News