SERVICE PROVIDERS FROM ABROAD WILL HAVE TO REGISTER BEFORE THE DIAN
DIAN established the procedure for foreign services providers to register and file VAT returns in Colombia
The recent tax reform (Law 1819 of 2016) extended the VAT triggering event in regard toservices. Applying the destination principle, services rendered by foreign providers from abroad to Colombian tax residents are subject to VAT in Colombia.
Recently, the Colombian Tax Administration issued a draft of resolution, establishing the procedure that persons and entities, without residence or domicile in Colombia, should carry out in order to fulfill their tax liabilities in regard to services rendered to Colombian residents who are not liable for collecting VAT.
In this sense, foreign entities that provide services to a Colombian resident must register and obtain a tax identification number. Additionally, they must collect and file the corresponding VAT return every two months.
According to a draft of Decree of the Ministry of Finance, foreign service providers would have to file the VAT return for the first time in November.
MODIFICATION OF VAT REFUNDS PROCEDURE FOR SOCIAL HOUSING PROJECTS