The Colombian tax administration (DIAN) has announced that the VAT Holiday established by the Law 2010/2019 and the Legislative Decree 682/2020 will be held on the following three days: June 19, July 3, and July 19 of 2020. Participation in the VAT Holiday is not mandatory. Businesses opting to participate in the VAT Holiday should comply with the following conditions: 1) Sales should be made to final consumers and only apply to three items of the same type per customer; 2) Sales should be paid via a credit/debit card or other means of electronic payments; 3) Sales should be supported with Electronic Invoices; and 4) The exemption only applies to sales under respective thresholds established for clothing ($198), computers, sport equipment, agricultural products and home appliances ($790), toys ($100), and school supplies ($50). More information is available here.
Colombia Sets the days for the VAT Holiday
Ramón Frias
June 19, 2020
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Author
Ramón Frias
Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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