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VAT in Colombia: 19 percent, the reverse charge on services from abroad, exemptions, filing periods and refunds

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Last verified: 2026-10-26 · Status: Stable

Colombian VAT is 19 percent, with 5 percent on a list of goods and an exemption with refund for exports and some basic goods. Services and licences bought from abroad are taxed in Colombia: the Colombian business self assesses the VAT through 100 percent withholding and credits it, while foreign digital providers selling to consumers register and pay themselves. Businesses file bimonthly or every four months depending on size, and only exporters and a few other groups can get VAT credits refunded in cash.

USD figures use the TRM of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on datos.gov.co. UVT amounts use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

VAT, general rate	19 %Estatuto Tributario art. 468, as of 2026-10-26 · in force
VAT reduced rate on listed goods	5 %Estatuto Tributario art. 468-1, as of 2026-10-26 · in force
VAT withheld by Colombian VAT responsible payer on taxed services from non residents	100 % of the VATEstatuto Tributario art. 437-2 num. 3 and art. 437-1 par. 1, as of 2026-10-26 · in force
Default VAT withholding by designated agents where no special rate applies	15 % of the VATEstatuto Tributario art. 437-1, as of 2026-10-26 · in force
Income threshold below which certain individuals need not register as VAT responsible	3500 UVTEstatuto Tributario art. 437 par. 3, as of 2026-10-26 · in force
Prior year gross income from which VAT is filed bimonthly	92000 UVTEstatuto Tributario art. 600, as of 2026-10-26 · in force
Days for DIAN to refund a complete and timely VAT refund request	50 daysEstatuto Tributario art. 855, as of 2026-10-26 · in force
Exports of goods and services used exclusively abroad	exempt with refund Estatuto Tributario art. 481, as of 2026-10-26 · in force
UVT for 2026	52374 COPDIAN Resolución 000238 de 2025, as of 2026-10-26 · in force
TRM used for USD conversions (valid 24 to 26 October 2026)	3158.43 COP per USDOfficial TRM series, Superintendencia Financiera de Colombia, as of 2026-10-24 · in force

The rule

1. VAT applies to sales of tangible movable and immovable goods (unless excluded), sales or assignments of rights over intangibles linked to industrial property, services rendered in Colombia or from abroad (unless excluded), imports of tangible goods not excluded, and gambling. Sales of fixed assets are not taxed, except residential property, vehicles and other fixed assets habitually sold for third parties, and aircraft.Estatuto Tributario (Decreto 624 de 1989), as amended by Ley 1819 de 2016 art. 173, Art. 420, lit. a to e and par. 1, 2016-12-29 official text · verified 2026-10-26

2. Services rendered and intangibles licensed or acquired from abroad are treated as supplied in Colombia, and bear VAT, when the direct user or recipient has its tax residence, domicile, permanent establishment or seat of business in Colombia. Services related to real estate are supplied where the property is; cultural and artistic services and loading, unloading and storage are supplied where they are physically performed.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 173, Art. 420, par. 2 and par. 3, 2016-12-29 official text · verified 2026-10-26

3. The general VAT rate is 19 percent. A 5 percent rate applies to a list of goods in art. 468-1, including coffee, wheat and some cereals, sugar, animal feed, agricultural machinery, electric and hybrid vehicles and their batteries and chargers, and the producer income on gasoline and diesel.
Example: Sale of goods for COP 10,000,000 before VAT: COP 1,900,000 of VAT at 19 percent, COP 500,000 at 5 percent. / About US$3,166 of sales: about US$602 of VAT at 19 percent.Estatuto Tributario, art. 468 as amended by Ley 1819 de 2016 art. 184; art. 468-1 as amended by Ley 1819 de 2016 art. 185, Art. 468, first paragraph; art. 468-1, 2016-12-29 official text · verified 2026-10-26

4. Exempt goods (with the right to credit input VAT and claim refunds) include bovine and pork meat, fish, milk, eggs, infant formula, medicines and vitamins, solar panels, inverters and charge controllers, and certain public transport and cargo vehicles. Exports of tangible goods, sales to international trading companies for export, services rendered in Colombia and used exclusively abroad by companies without business in Colombia, tourism services sold to non residents through registered operators, and raw materials and goods sold to free trade zone industrial users are exempt with bimonthly refund.Estatuto Tributario, art. 477 as amended by Ley 1819 de 2016 art. 188 and Ley 2010 de 2019 art. 12; art. 481 as amended by Ley 1819 de 2016 art. 189, Art. 477; art. 481, lit. a to e, 2019-12-27 official text · verified 2026-10-26

5. Those carrying out taxed activities must register as VAT responsible, except individual merchants and artisans who are retailers, small farmers and ranchers, and service providers, if they meet all the conditions: gross income from the activity below 3,500 UVT in the prior or current year, a single business location, no franchise or similar intangible arrangements at it, no customs user status, no single taxed contract of 3,500 UVT or more, and bank deposits from taxed activities not above 3,500 UVT.
Example: 2026 threshold: 3,500 UVT = COP 183,309,000. / About US$58,038.Estatuto Tributario, as amended by Ley 2010 de 2019 art. 4, Art. 437, par. 3, 2019-12-27 official text · verified 2026-10-26

6. A VAT responsible Colombian business that contracts taxed services with persons or entities without residence or domicile in Colombia must withhold 100 percent of the VAT (reverse charge) and may then treat it as input VAT. In other cases VAT withholding by designated agents (state entities, large taxpayers, card issuers) is up to 50 percent of the tax, and 15 percent where no special rate is set by decree.
Example: Software development services billed from abroad for COP 50,000,000: the Colombian company self assesses COP 9,500,000 of VAT and withholds COP 10,000,000 of income tax. / About US$15,831 of services: about US$3,008 of reverse charge VAT and US$3,166 of income tax withholding.Estatuto Tributario, art. 437-2 num. 3 as amended by Ley 1819 de 2016 art. 180; art. 437-1 as amended by Ley 2010 de 2019 art. 5, Art. 437-2 num. 1, 2 and 3; art. 437-1, second paragraph and par. 1, 2019-12-27 official text · verified 2026-10-26

7. Non resident providers of services from abroad that are taxed in Colombia (for example digital services to consumers) are themselves VAT responsible and declare and pay under a procedure set by DIAN, in a return that can be liquidated in US dollars and converted at the TRM of the day of filing and payment; a return without full payment has no effect. They need not issue Colombian invoices for electronic or digital services, unless DIAN requires electronic invoicing. Alternatively, listed providers may opt for withholding by card issuers and payment collectors (see taxes/digital-services).Estatuto Tributario, art. 437 par. 2 as added by Ley 1819 de 2016 art. 178 and amended by Ley 2010 de 2019 art. 4; art. 437-2 num. 8 and par. 3, Art. 437, par. 2; art. 437-2 num. 8 and par. 3, 2019-12-27 official text · verified 2026-10-26

8. Input VAT that can be credited is VAT invoiced on purchases of goods and services and VAT paid on imports, but only where the purchase is a cost or expense for income tax and is used in VAT taxed operations. Bimonthly filers must book input VAT in the period it accrues or in one of the next three bimonthly periods; four monthly filers in that period or the next.Estatuto Tributario, art. 485 as amended by Ley 1607 de 2012 art. 56; art. 488; art. 496 as amended by Ley 1819 de 2016 art. 194, Art. 485, art. 488 and art. 496, 2016-12-29 official text · verified 2026-10-26

9. Large taxpayers, those with gross income of 92,000 UVT or more at 31 December of the prior year, and exporters and producers of exempt goods file and pay VAT bimonthly (January and February, March and April, and so on); others file every four months (January to April, May to August, September to December). A responsible with no taxed operations and no input VAT in a period need not file for it.
Example: 2026 threshold for bimonthly filing: 92,000 UVT = COP 4,818,408,000 of gross income in 2025 (using the 2026 UVT for orientation). / About US$1,525,571.Estatuto Tributario, art. 600 as amended by Ley 1819 de 2016 art. 196; art. 601 as amended by Ley 1607 de 2012 art. 62, Art. 600 num. 1 and 2; art. 601, 2016-12-29 official text · verified 2026-10-26

10. VAT credit balances can be refunded only to exporters and other art. 481 operations, producers of exempt goods under art. 477, sellers of goods and services taxed at 5 percent (after filing the income tax return for the year) and those who suffered VAT withholding; other responsibles carry the balance forward. DIAN must refund within 50 days of a complete and timely request (30 days for authorised economic operators in the exempt and export regimes), with one extra month if requested within two months of the return; an automatic refund applies to low risk taxpayers whose costs and input VAT are more than 85 percent supported by electronic invoices.Estatuto Tributario, art. 850 par. 1 as amended by Ley 2010 de 2019 art. 114; art. 855 as amended by Ley 1430 de 2010 art. 19 and Ley 2010 de 2019 art. 115, Art. 850 par. 1; art. 855 first paragraph, par. 3, 4 and 5, 2019-12-27 official text · verified 2026-10-26

11. On imports, VAT is calculated on the same base used for customs duties (the customs value) plus the duty itself, and is creditable as input VAT where the goods are used in taxed operations.
Example: Machinery with a customs value of COP 100,000,000 and 5 percent duty: duty COP 5,000,000, import VAT 19 percent of COP 105,000,000 = COP 19,950,000. / About US$31,661 of goods: about US$1,583 of duty and US$6,316 of import VAT.Estatuto Tributario, art. 459 as amended by Ley 633 de 2000 art. 126 and Ley 2010 de 2019 art. 8; art. 485 lit. b, Art. 459 first paragraph; art. 485 lit. b, 2019-12-27 official text · verified 2026-10-26

Transaction	Treatment	Norm
Domestic sale of goods or services	19% (5% for goods listed in art. 468-1)	Art. 468, 468-1
Services or licences bought from a non resident (B2B)	19% self assessed by the Colombian buyer through 100% VAT withholding	Art. 420 par. 3, 437-2 num. 3, 437-1 par. 1
Digital services sold by a non resident to Colombian consumers	19%, declared by the foreign provider or withheld by card issuers if it opts in	Art. 437 par. 2, 437-2 num. 8
Imports of goods	19% on customs value plus duty	Art. 459
Export of goods	Exempt with bimonthly refund	Art. 481 lit. a
Services rendered in Colombia, used exclusively abroad by a company without business in Colombia	Exempt with refund	Art. 481 lit. c
Sales to free trade zone industrial users of inputs needed for their activity	Exempt with refund	Art. 481 lit. e
Sale of fixed assets (other than housing, vehicles, aircraft)	Not taxed	Art. 420 par. 1

VAT treatment of common transactions for a foreign owned Colombian company, as in force on 26 October 2026

Worked example

Cloud software licence from a foreign parent invoiced at US$100,000 (COP 315,843,000): the Colombian subsidiary withholds 20 percent income tax (US$20,000) and self assesses 19 percent VAT (US$19,000, COP 60,010,170), which it credits in the same VAT return if the licence is used in taxed activity, so the VAT is cash neutral but the income tax withholding is a real cost to the licensor unless a treaty reduces it.
An exporter of flowers that buys inputs with VAT and sells abroad VAT exempt files bimonthly and can request a refund of the input VAT, to be paid within 50 days of a complete request (art. 481, 850, 855).

Step by step

Register as VAT responsible in the RUT when forming the company (the art. 437 par. 3 exception covers only small operators below 3,500 UVT with a single location and no customs user status).
Work out the filing period: bimonthly if gross income of the prior year was 92,000 UVT or more, or if the company is an exporter or large taxpayer; otherwise every four months (art. 600).
Issue electronic invoices for all sales and collect electronic invoices from suppliers: input VAT and refunds depend on them (art. 855 par. 5).
For every service bought from abroad, self assess the 19 percent VAT through 100 percent withholding in the month of payment and declare it in the monthly withholding return (art. 437-2 num. 3).
Book input VAT within the period it accrues or the next three bimonthly periods (art. 496).
If exporting or selling exempt goods, keep proof of export or exclusive use abroad and request refunds after each period (art. 481, 850).

Common traps

Services rendered from abroad to a Colombian business are taxed in Colombia (art. 420 par. 3), so foreign consulting and licences carry 19 percent VAT on top of 20 percent income tax withholding.
Input VAT on purchases not used in taxed operations, or not deductible for income tax, cannot be credited (art. 488).
Input VAT not booked within three bimonthly periods after accrual is lost as a credit (art. 496).
Only exporters, exempt goods producers, 5 percent sellers and withholding victims can get cash refunds; other businesses with a structural VAT credit carry it forward (art. 850 par. 1).
The export exemption for services requires that the service be used exclusively abroad by a company without business or activities in Colombia, with documents kept to prove it (art. 481 lit. c).

Sources

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