Colombia hikes VAT to 19%

Colombia has proposed raising its VAT rate from 16% to 19% as part of a package of measures to prevent the country losing its BBB credit rating following the sharp fall in global oil prices.

Colombia would also introduce VAT on electronic services provided to consumer by companies based outside of the country.

This hike would be implemented on 1 January 2017.

Other measures include improved tax administration, and policies in line with the OECD BEPS project to reduced VAT avoidance.

Colombian VAT rates