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SALE OF INTANGIBLE ASSETS IN CONNECTION WITH INTELLECTUAL PROPERTY IS SUBJECT TO VAT

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SALE OF INTANGIBLE ASSETS IN CONNECTION WITH INTELLECTUAL PROPERTY IS SUBJECT TO VAT

The sale of intangible assets associated with industrial property will be taxed at a rate of 19%

 

Previously, the applicable law determined that transactions with intangible assets (patents, trademarks, software etc.) were not subject to VAT if the operation was made within Colombia.

Law 1819 included within the goods subject to a 19% VAT, the sale or transfer of intangible assets associated with industrial property.

Intangibles acquired or licensed from foreign entities, shall be deemed as acquired or licensed in Colombia, as long as their user or recipient is a tax resident in Colombia. This same rule applies for the services provided from abroad for users or recipients that are tax residents in Colombia.

The foregoing is regulated in Article 173 of Law 1819 of 2016.