+44 (0)1273 022400
Colombia introduced Value Added Tax (Impuesto Sobre Las Ventas (IVA)) in 1983. It is administered by the Dirección de Impuestos y Aduanas Nacionales (DIAN).
Businesses providing taxable supplies of goods or services in Columbia may have to contact the tax authorities and register for VAT. There are a number of situations for this obligation to be triggered. They include:
A VAT registration is made to the Registro Único Tributario” (RUT) via Form 1. The business must supply the following documents in support of the application:
Failure to register may result in penalties. A registered business will be provided with a Taxpayer Identifiaction Number (“Número de Identi cación Tributaria” – NIT. There is no scope for voluntary VAT registration. Deregisteration must be applied for within 30 days of stopping taxable supplies, and should be supported by the certificate of a public auditor.
The Colombian VAT registration threshold is Peso 110 million for the simplified VAT regime. This is available to businesses of limited size, and without imports or exports. This is for resident businesses, and non-residents with a local permanent establishment.
It is not possible for foreign businesses to register for indirect taxes in Colombia as a non-resident. It is necessary for foreign traders to form a permanent establishment in order to register for indirect taxes in Colombia.
+44 (0)1273 022400