Colombia VAT Registrations Explained
Updated 3 months ago
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Colombia VAT Registrations Explained
This article walks you through the types of VAT registrations available in Colombia and helps you identify which registration applies to your business.
Registration Types Supported by Kintsugi
Colombia has three VAT registration schemes. Kintsugi currently supports two of them.
Registration Type | Who It Is For | Kintsugi Support |
|---|---|---|
Standard VAT Registration | Resident businesses and non-resident entities with physical presence in Colombia | Supported |
Simplified Registration | Non-resident remote sellers of digital or electronic services to non-VAT-registered Colombian customers | Supported |
Simplified Tax Regime (RST) | Resident individuals and businesses with gross income below 100,000 UVT | Out of scope for V2 |
Standard VAT Registration
Standard VAT Registration is required for any person or entity supplying goods or services in Colombia, including:
Colombian resident businesses
Non-resident businesses with a physical presence (delivering, importing, or exporting goods)
Key details:
No sales threshold. Registration is required before your first taxable supply.
No temporary registration option.
Voluntary registration is not applicable since the threshold is zero.
Simplified Registration for Non-Resident Remote Sellers
This registration applies specifically to non-resident providers of digital and electronic services who sell to non-VAT-registered Colombian customers.
Key details:
No sales threshold. Registration is required before your first taxable supply.
No temporary registration option.
No local fiscal representative required.
VAT is charged on B2C sales. For B2B sales, the reverse charge mechanism applies (the buyer self-assesses).
If selling to customers registered under the Simplified Tax Regime (RST), VAT must be collected even on B2B sales.
Exchange Rate for Foreign Currency Transactions
If your invoicing is in a foreign currency, Colombia requires you to use the TRM (Tasa Representativa del Mercado) on the date of supply for all tax calculations. The TRM is the official daily exchange rate for USD to COP, certified by the Superintendencia Financiera de Colombia.
If transactions are carried out in a currency other than USD, you must first convert to USD using the exchange rates published by the Banco de la República (Colombia's central bank) on the day of the operation.
Filing Frequency After Registration
Your filing frequency depends on your registration type and gross income. Refer to the article Understanding Colombia VAT Filing Frequencies for full details.
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