Colombia extends VAT refunds to mobile payments to cut fraud
- Aug 24, 2014 | Richard Asquith
The Colombian tax office has clarified the procedures for individuals to reclaim up to 2% of VAT that is charged to them when paying by credit or debit cards on their mobile phone or tablet. This incentive is designed to stimulate the use of electronic payments by consumers, and thus reduce the likelihood of undeclared cash transactions.
The standard VAT rate in Columbia is 16% following its implementation last year to replace Sales Tax.
The new instructions for banks include the requirement to provide details of the VAT calculations – the responsibility of the platform provider.