How vat / sales tax works in Colombia
Colombian VAT (IVA) defaults to 19% on goods and services, with 5% on defined foods, medicines, and inputs and 0% on exports and exempt-with-credit supplies.
Traders file bi-monthly, quarterly, or annually by turnover through DIAN electronic invoicing with prior validation, and withholding-style collection applies on defined transactions.
Health, education, finance, and public-transport supplies are largely excluded or exempt, while digital services by foreign vendors face collection rules.
Tax rates at a glance
- Standard VAT
- 19%
- Reduced VAT
- 5% / 0%
- Excluded supplies
- Excluded
- Exports
- 0%
- Filing rhythm
- Bi-monthly+
- E-invoicing
- Validated
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersSaaS foundersExpatsCross-border traders
Watch out for
- Excluded versus exempt-with-credit versus 0% each carry different input consequences, and misclassification permanently embeds cost.
- UVT-indexed thresholds move yearly in nominal terms, so registration and filing-frequency tests need current-year values.
- Withholding-style VAT collection on defined transactions shifts remittance to counterparties, which changes cash-flow modelling.
- Foreign digital-service collection and marketplace rules pull offshore vendors into Colombian duties from qualifying sales.
Frequently asked questions
What is the VAT rate in Colombia?
Colombia applies 19% general VAT in 2026, with 5% and 0% differential rates on defined goods, plus excluded categories for health, education, and finance.
How often are Colombian VAT returns filed?
Bi-monthly, quarterly, or annually by turnover size, through DIAN-validated electronic invoicing that supports every credit.
Do foreign digital sellers collect Colombian VAT?
Yes on qualifying B2C digital supplies through dedicated collection tracks, with marketplace and withholding mechanics layered on platform flows.