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VAT applicable for public procurement contracts

The applicable VAT will be the one that was in force at the date of the resolution awarding the contract

 

Through its Revenue Ruling No. 20876 of August 4th 2017, the Colombian Tax Authority –DIAN- determined that public procurement contracts, with independence of their contracting regime, will still be subject to a 16% VAT as long as they were signed before the coming into force of Law 1819 of 2016- The Fundamental Tax Reform.

In case in which the contract is subject of an addition, amendment or extension, the VAT rate in force at that time will apply (VAT at a 19% rate after January 1st 2017).