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Colombia overhauls VAT and introduces Consumption Tax

  • VAT
  • 19 January 2013 | Richard Asquith

Colombia overhauls VAT and introduces Consumption Tax

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.


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.