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Colombia sales tax on exports exemptions

  • Nov 2, 2013 | Richard Asquith

Colombia sales tax on exports exemptions

The Colombian tax office has issued up-to-date guidance on the rules for applying nil VAT on the export of services to foreign corporations.  See Decreto 2223, 11 October 2013.

Conditions for Colombian VAT export exemption

The new decree details the conditions that must be present to qualify for a sales tax exemption, including:

  • The services must be provided to either taxable businesses or consumers resident outside of Colombia
  • They must have no permanent establishment or residency in Colombia.
  • The supplier and customer must have no formal financial or ownership bonds
  • The Colombian exporter must be an approved exporter, and registered with the state's export register, RUT.

VAT is also charged at 16%, with a 5% reduced VAT rate since the start of 2013.  There is a new consumption tax on restaurants since 2013.

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 can be contacted at: He is part of the European leadership team which won International Tax Review's 2019 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.