Reduced VAT / GST rate

0 [1] / 5

Standard VAT / GST rate

19 [2]

High VAT / GST rate

Not applicable

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Note: Transactions that are originated on the provision or transfer of excluded goods and services are excluded from VAT. Excluded services and goods are those expressly denominated as such by the law, and are not subject to VAT. The VAT paid (or accrued) in the acquisitions of goods and services that support excluded transactions may not be credited and it must will be treated as a higher cost.

[1] An exempt rate of 0% applies to transactions that are originated on the provision or transfer of exempted goods and services which are, also, expressly denominated by the law. Suppliers of VAT-exempted services are entitled to offset the input VAT related to such services. Additionally, if the supplier of exempted goods or services has a balance in favor of VAT from exempted operations, it is entitled to request its reimbursement before the Tax Office

[2] A consumption tax of 4%, 8% or 16% may apply. The national consumption tax is triggered by the provision or sale to the final consumer or the importation by the final consumer of the following services and goods: (i) the provision of mobile phone services, internet, mobile navigation and data services; (ii) sales of some tangible goods, such as vehicles, boats, motorcycles,
aircrafts, etc; (iii) the sale of food and drinks prepared in restaurants, cafeterias, self-service stores, ice cream shops, greengrocers, bakeries and bakeries for consumption in the place or to be taken by the buyer or delivered home, catering service, and the sale of meals and alcoholic beverages for consumption inside bars, taverns and discotheques. The rates will depend on the type of good or service. Note that consumption tax is also applicable to medicinal cannabis and the applicable rate is 16%. Consumption tax also applies to plastic bag consumption. The applicable tax is COP $50 per bag in 2020.