As of January of this year, multiple provisions of the tax reform that was approved and reconciled in Congress last year, as well as sanctioned by the President of the Republic, came into effect.
Although the reform came into effect upon its enactment, the legislator provided additional deadlines to comply with some of the provisions regulated therein, such as the increase from SIXTEEN PERCENT (16%) to NINETEEN PERCENT (19%) of the value added tax (VAT), for which the aforementioned reform set a maximum deadline.
The modifications to the sales tax or VAT must be applied by Colombian businesses as of February 1, 2017, for all types of goods or services offered to the public. Additionally, in accordance with Article 198 of the aforementioned text, in the case of commercial establishments with direct sales to the public of previously marked merchandise on display, such merchandise may be sold at the already fixed sale price until stock is exhausted.
"ARTICLE 198. MAXIMUM DEADLINE FOR REPRICING DUE TO VAT RATE CHANGE. For the application of modifications to the sales tax due to a change in the rate, in the case of commercial establishments with direct sales to the public of merchandise pre-marked directly or on shelves, existing on counters, such merchandise may be sold at the retail price already fixed, in accordance with the sales tax provisions applicable before the entry into force of this law, until the stock of said merchandise is exhausted.
In any case, as of February 1, 2017, all goods and services offered to the public must comply with the modifications established in this law."
To download the full text of the reconciliation of the tax reform, click here.