Colombia | KPMG | GLOBAL

Colombia

Colombia

Explore the requirements and rules that apply to electronically supplied services in Colombia.

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Colombia

Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No.

If there is no current requirement, is there any anticipated change to that position?

Yes, there is a scheduled introduction of such a requirement

Is an invoice compliant with the VAT/GST law in the customer's country required?

Yes, in principle providers of foreign services would be required to issue invoices.

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No.

If there is no current requirement, is there any anticipated change to that position?

Yes, there is a scheduled introduction of such a requirement.

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

Yes, to the extent that the beneficiary of the service (Colombian payer) has been designated by the Tax Authority as a withholding agent the beneficiary would apply the VAT withholding tax (“WHT”). This WHT would operate as a reverse charge. In the event that the customer is not a withholding agent, the non-resident vendor could be required to register under the “ordinary registration regime”. The withholding would be via reverse charge.

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement:

When did/will that requirement come into effect?

1 July 2018

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

In principle no threshold would be applicable.

Is simplified or standard registration required?

The new regulations set forth a simplified registration regime.

Does the requirement apply to all e-services?

Yes.

Contacts

María Consuelo Torres
Vice President
T +57 1 6188000
E mctorres@kpmg.com

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