Colombia VAT Compliance: An Overview for Businesses

Meeting your VAT obligations in Colombia is crucial to avoiding penalties and reputational harm. Each country has its own VAT rules, and Colombia is no different – you must be aware of your specific requirements.

Compliance is Sovos’ concern. That’s why this overview is your ideal one-stop-shop for Colombian VAT compliance information. Be sure to bookmark the page and revisit it whenever you have a question.

General VAT information for Colombia

Periodic VAT return	Bi-monthly Within 25 days of the month following the month in which the payment corresponds
Periodic VAT return	Quarterly Within 25 days of the month following the month in which the payment corresponds
VAT rates	19% 5%

General VAT information for Colombia
VAT rules in Colombia
- Colombia e-invoicing
- Colombia Electronic Equivalent Documents
Requirements to register for VAT in Colombia
- VAT on Goods
- VAT in Digital Services
Invoicing requirements in Colombia
Penalties for non-compliance with VAT in Colombia?
Solutions for VAT compliance in Colombia
FAQ
Additional resources

VAT rules in Colombia

There are multiple mandates businesses operating in Colombia need to know.

Colombia e-invoicing

Organisations operating in Colombia must consider that, in addition to VAT, they are likely to be obligated to meet Colombia’s e-invoicing requirements.

Put simply, Colombia has mandated that taxpayers must issue and receive electronic invoices since 2019. There are strict rules around formatting, information, validation and archiving.

Find out more about e-invoicing in Colombia.

Colombia Electronic Equivalent Documents

As well as e-invoicing, Colombia has electronic equivalent documents. These documents are digital receipts issued by the tax authority and are necessary for transactions that do not require issuing a sales invoice.

Electronic receipts may be issued, generated and transmitted—regardless of the operation's amount —allowing domestic B2C transactions less than or equal to 5 UVT to be issued electronically and reported to the tax administration in real time.

Colombia’s electronic equivalent documents must comply with specific legal requirements, contain information relevant to the commercial operation and be both generated and transferred electronically through a DIAN-authorised technology provider.

Requirements to register for VAT in Colombia

Colombia does not have a threshold for VAT registration, meaning businesses must register for VAT if they sell eligible goods or services. They can register for VAT through Colombia’s DIAN website. To be legally seen as VAT–registered, they need to be registered with the national tax authority and have obtained an NIT number.

However, individuals must register for VAT once their total gross income exceeds 3,500 UVT in the previous or current year.

Invoicing requirements in Colombia

Colombia has stringent rules in place for invoicing. These include:

Established taxpayers must issue and receive invoices electronically
E-invoices must be validated by the tax authority before being issued
They must be securely signed with a digital signature to ensure integrity
They must be archived by both the issue and the receipt
Invoices must use the consecutive numbering system and include a Unique Electronic Invoice Code (CUFE)
Issuers must also create a PDF version of the invoice that includes a QR code

There are more factors at play with Colombia invoicing.

Penalties for non-compliance with VAT in Colombia?

There are penalties in place for taxpayers who fail to meet their VAT obligations in Colombia, including:

Late filing of VAT return: 5-200% of tax owed
Corrections made to VAT return: 10-30% of tax owed
Omission in the declaration: 10% of the income of the last declared period

There are also harsh repercussions for those who are found to have committed fraud related to their VAT returns, both financially and in terms of restrictions on their ability to do business.

FAQ VAT compliance Spain

What is the VAT rate in Colombia?

The standard VAT rate in Colombia is 19%.

What items are VAT exempt in Colombia?

In Colombia, the following are exempt from VAT:

Medicine
Exports of goods
Particular agriculture supplies

Can I withhold VAT in Colombia?

Yes, taxpayers can withhold VAT on the purchase of goods and services for domestic transactions – specifically 15% of the tax due.

How to reclaim VAT in Colombia?

VAT reclaims can only be requested by those responsible for the goods and services referred to in Article 481, by the producers of the exempt goods referred to in Article 477 of the Tax Code.

Builders who develop social interest housing will also be entitled to a refund or compensation of the Value Added Tax, VAT, paid on the acquisition of materials for the construction of the same.

A refund is also applicable for gold exporters who meet certain requirements.

Can non-residents recover VAT in Colombia?

Colombia’s tax authority allows tourists to recover 100% of VAT paid on taxed goods, as long as the purchases are covered by an electronic invoice equal to, or greater than, 3 Tax Value Units (UVT).

Do I need a fiscal representative in Colombia?

No, foreign organisations selling goods from or into Colombia are not required to appoint a fiscal representative.

What is a VAT number in Colombia?

In Colombia, a VAT ID number is a unique identifier that can be obtained from the government when registered for VAT in the country. It’s important to note that this number differs from a tax identification number.

Solutions for VAT compliance in Colombia

It may seem heavy on resources to meet your business obligations in Colombia, but it does not have to be. Choosing Sovos as your compliance partner allows you to meet requirements while focusing on your core business.

Sovos’ solutions are matched only by our team of regulatory experts, helping you keep on top of tax both now and as regulations evolve over time.