Colombia overhauls VAT and introduces Consumption Tax
- Jan 19, 2013 | Richard Asquith
The Colombian VAT authorities have announced some simplifications in the VAT rate regime, as well as bringing in some new goods and services into the Consumption Tax rate.
Colombian VAT rate simplifications
The number of VAT rates has been reduced from seven to just three: nil; 5%; and 16%. All goods on the old higher 20%, 25% and 35% rates will now be at 16%. Restaurants services will be removed from the VAT regime, and now be subject to Consumption Tax.
Colombia creates new Consumption Tax
The will be a new tax, Consumption Tax from 2013. This will be levied at 8% on restaurant services (see above), and 4% on mobile telephony services.