Colombia VAT compliance update

The Colombian Tax authorities have provided a new decree ( Decree 1794) last week on a number of VAT compliance issues.  These include:

• guidance on the new monthly, quarterly and annual VAT reporting procedures.
• the VAT tax, which is operated like an income withholding tax, is 15%.  However, where the taxpayer has been in consistent credit positions for at least six months, this may be reduced to 10%.