Legal Bulletin


Digital services rendered abroad by foreign entities or non-resident individuals would be subject to VAT withholding when paid through Colombian-issued credit or debit cards.  

The financial institutions should withhold VAT for the following electronic or digital services:

  1. Web pages hosting, cloud storage (cloud computing) and at-distance maintenance of programs and equipment;
  2. Supply of software and software updates;
  3. Electronic supply of images, text and other information, and the availability of access to digital databases;
  4. Provision of audiovisual services (among others, music, videos, movies and games of any kind, as well as broadcasting of any event);
  5. Supply of distance education or training;
  6. Provision of other online services (advertising, participatory platforms, payment platforms, among others);
  7. Other services that DIAN determines through a resolution.

The bill provides that this withholding system will enter into effect within 6 months after the law enters into force.