According to Decree of 2223 of 11 October 2013, the Colombian tax office has issued up-to-date guidance on the rules for applying VAT exemption on the export of services to foreign corporations.

The conditions which must be present to qualify for a sales tax exemption are as below-

  • If the services  provided to either taxable businesses or consumers resident outside of Colombia;
  • If the customer have no permanent establishment or residency in Colombia;
  • If the supplier and customer must have no formal financial or ownership bonds;
  • If the Colombian exporter must be an approved exporter, and registered with the state’s export register, RUT.

VAT is charged at 16% with a 5% reduced. VAT rate since the start of 2013.  There is a new consumption tax on restaurants since 2013.