Colombia sales tax on exports exemptions

Sat 2nd Nov 2013

The Colombian tax office has issued up-to-date guidance on the rules for applying nil VAT on the export of services to foreign corporations.  See Decreto 2223, 11 October 2013.

Conditions for Colombian VAT export exemption

The new decree details the conditions that must be present to qualify for a sales tax exemption, including:

  • The services must be provided to either taxable businesses or consumers resident outside of Colombia
  • They must have no permanent establishment or residency in Colombia.
  • The supplier and customer must have no formal financial or ownership bonds
  • The Colombian exporter must be an approved exporter, and registered with the state’s export register, RUT.

VAT is also charged at 16%, with a 5% reduced VAT rate since the start of 2013.  There is a new consumption tax on restaurants since 2013.