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 VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. 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.
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