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Legal Bulletin

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The sale of intangible assets would be taxed with VAT at a rate of 19% on the price.

Under current law, transactions with intangible assets (patents, trademarks, software etc.) are not subject to VAT if the operation is made within Colombia.

The bill includes a special provision of intangible assets acquired or licensed from foreign entities or non-resident individuals. According to the proposed rule, 19% VAT would be applied to any intangible asset acquired from such persons, which shall be deemed as acquired or licensed in Colombia, as long as the end user or recipient is a tax resident in Colombia.