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Colombia extends VAT refunds to mobile payments to cut fraud

  • VAT
  • 23 August 2014 | Richard Asquith

Colombia extends VAT refunds to mobile payments to cut fraud

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.