Legal & Taxes
VAT in Colombia: general and reduced rates
Calculate Colombia’s 19% general VAT rate and understand why reduced, exempt and excluded treatment must be verified.
Colombia’s general VAT (IVA) rate is 19%. Certain goods and services may use a reduced 5% rate or receive exempt or excluded treatment under the tax code.
At the general rate, a net price of 1,000 becomes:
VAT = 1000 x 0.19 = 190
gross total = 1190To extract VAT from 1,190:
net = 1190 / 1.19 = 1000
VAT = 190“Exempt” and “excluded” are not synonyms and can have different compliance and input-tax consequences. Confirm product classification and the current rule before invoicing.
Use the VAT calculator for the arithmetic. DIAN’s legal compilation confirms the 19% general rate and statutory exceptions.