Colombia’s Value-Added Tax (VAT) is a primary indirect tax applied to the sale of goods and services.
The standard VAT rate is 19%, with reduced rates and zero-rated provisions aimed at supporting basic needs and certain sectors of the economy.
| Rate | Type | Examples of goods and services |
|---|---|---|
| 19% | Standard | All other taxable goods and services |
| 5% | Reduced | Agricultural supplies, electric vehicles |
| 0% | Zero | Exports, meat, dairy products, eggs |
In addition to VAT, Colombia has specific consumption taxes that apply to certain goods and services. These are not creditable against VAT and are considered additional costs for income tax purposes. For example:
- 8% on restaurant services
- 4% on mobile phone services
- 16% on luxury goods
For more details on VAT and consumption tax regulations, visit the DIAN website.