VATLive > Blog > Colombia > Colombia VAT deferral for COVID-19

Colombia VAT cuts on tourism

  • Oct 26, 2020 | Richard Asquith

26 Oct - proposals to exempt hotels and other tourism services from VAT until the end of 2021. Reduce the National Consumption Tax on restaurants from 8% to 0%. Reduced flights from 19% to 5% VAT rate.

25 Aug - VAT registered businesses will be automatically granted VAT credit refunds without the need for an application for a refund. This only applies to businesses with a good compliance and payments history. The measure will be in place until the end of 2020.

17 July - abandons plans for second and third VAT-holiday shopping days on COVID-19 infection worries.

11 Jun - businesses owing VAT reduction in late interest penalty and interest fines until the end of November 2020.

28 May - food and drinks are to be exempted from consumption tax to 31 December 2020. Commercial property is to be exempted from VAT until 31 July.

20 May - the government has proposed a 3-day suspension of the VAT regime on goods on the following dates: 19 June; 3 July; and 19 July.

Update 31 March - transactional level data on customer/supplier dealings, the magnitic media information, have been delayed.

Colombia has delayed the Value Added Tax filing deadlines for industries in hard-hit sectors by the coronavirus virus. The sectors include: tourism; hotels; restaurants; airlines; and live entertainment. All affected taxpayers will be able to delay filings, whether they are quarterly or bi-monthly, until 30 June – a 30-day extension.

Other sectors may delay VAT payments to 30 June, too, rather than May. These include: restaurants, bars and cafes; and holiday companies.

The 8% Consumption Tax on restaurants will also benefit from easements. Filings are delayed until 30 June. Payment dates are postponed until the second half of May.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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