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In recent years, Colombia has positioned itself as a popular tourist destination among travelers worldwide, becoming the third most visited country in Latin America, surpassed only by the Dominican Republic and Mexico. The country has implemented measures to enhance its attractiveness and competitiveness for the international community. One strategy is the Value Added Tax Return (VAT) for foreign tourists in Colombia, established by Resolution 1495 of 2021.
Foreigners in Colombia can request a VAT refund on taxable purchases when exiting the country. For details on eligibility and the procedure, visit expatgroup.co‘s updated 2023 guide.
What is the IVA tax in Colombia?
IVA is the Spanish VAT tax, an indirect contribution that taxes consumption and is applied in the sale of goods and services considered taxable. The general IVA tax rate in Colombia is currently 19%; however, other rates apply to specific cases.
Who is eligible to request an IVA tax return in Colombia?
All foreigners who visit Colombia as tourists can request the IVA return, holding a valid tourist permit (TP) or a Tourist Visa (V-Type). In this regard, it’s necessary that the entry stamp clearly indicates the tourist status.
What documents must present a foreigner to request the IVA tax return?
National tourists from countries associated with the Andean Community (CAN) and the Southern Common Market (MERCOSUR) must present one of their valid national identification documents in addition to the Andean Migration Card (TAM) issued by Migración Colombia.
DIAN must validate request form 2737 for the IVA refund for the refund process to be successfully completed. To validate the shopping tax refund request form, you must make the process at the nearest DIAN Validation Kiosk/Self-Service or DIAN office before leaving the country.
How do I identify valid invoices for the IVA tax return?
Sellers must issue the electronic invoice to the foreigner’s name, who will submit the IVA tax refund request. The document number on the invoice must match the foreigner’s identification document used upon entry into the country.
Furthermore, it must include the legal name of the company (business’s legal name), the Tax Identification Number (NIT), and contact information. It must be clearly identified as «Electronic Sales Invoice» and its respective numbering.
Each electronic invoice has a CUFE code and a QR code. These two elements ensure that the invoice complies with the regulatory issuance and verification by DIAN.
How is the IVA tax return process?
This procedure must be completed before the luggage check-in because officials can ask the foreigner to show the purchased goods that will leave the country. The acquired goods must remain in their original packaging. Suppose the expat has to make domestic layovers before leaving the country. In that case, he should complete the process in the last Colombian city where the luggage will be registered, with its subsequent delivery in foreign territory.
Refunds for tax returns can only be received via Visa and Mastercard credit cards specified in the refund request form. No refunds will be issued through other payment methods, including cash or debit cards when the procedure is carried out directly at the DIAN office.
If the process is made at a validation kiosk of the authorized payment processing company, the refund can be made to the credit or debit card listed on the refund form.
It should be noted they will deduct all the financial and operational costs of the refund amount. If the refund amount is equal to or less than the intermediation costs for this process, they won’t refund the tax amount.
What kind of purchases qualify for the IVA tax return?
Purchases eligible for IVA tax return are those for goods whose value equals or exceeds three Tax Value Units (UVT). For the year 2023, the value of each UVT is COP 42,412 (approximately USD 10 at a reference rate of 4,000 COP/USD). Therefore, purchases that, according to the respective invoices, demonstrate a value equal to or greater than COP 127,236 (approximately USD 32 at a reference rate of 4,000 COP/USD) will be eligible for this benefit.
This refund only applies to taxable goods acquired through any payment method (credit cards, debit cards, cash, etc.) that leave the country with the person who made the purchase. If the item was purchased exclusively for use in the national territory, it would not qualify for the IVA tax refund. Please note that this process cannot be requested for taxes acquired by purchasing gasoline, food, alcoholic beverages, or services received in the Colombian territory.
Where should I go to process the IVA tax return?
The foreigner wishing to request a refund of this tax should visit a DIAN office or Global Blue Sucursal Colombia, where an official from this institution will assist them.
Currently, these self-service offices or kiosks are located at the following airports:
| Airport | Location |
|---|---|
| El Dorado Airport, Bogotá. | -Level 2 – Entry 5 DIAN Customs Office / Second Floor – Gate 5 – kiosks |
| José María Córdova Airport, Rionegro, Antioquia. | -Second Floor – Gate 3 – DIAN office / Second Floor – Entry 2 – Kiosks |
| Rafael Núñez Airport, Cartagena. | -International Departures Gate – Kiosks / International Departures Entry – DIAN Office |
| Ernesto Cortissoz Airport, Barranquilla. | -Floor – Entry 3 – Kiosk |
| Alfonso Bonilla Aragón Airport, Cali. | -International Hall – Second Floor Gate 2 |
| Internacional Palonegro Airport, Bucaramanga. | -Second Floor- Gate 14 – Customs Office |
