Days without VAT in Colombia

ID: 1561670
recent pressrelease next pressrelease

(PresseBox) - On 27 December 2019, Colombia approved a tax reform including a special VAT exemption: On 3 days during 2020, certain groups of goods, such as clothing, appliances and school supplies, are free of VAT. This applied to national purchases and included some conditions such as payment method, price and number of units per buyer.

The objective of this was, according to the government, to encourage household consumption and the revival of the economy. The standard rate of VAT in Colombia is 19%. However, the arrival of COVID-19 led to uncertainty, as economists predicted that households would be cautious with their spending in order to counteract the economic crisis generated by the pandemic. This would prevent any compensation for the economic slowdown.

However, the Colombian government bet on optimism and the first VAT-free day came in the middle of the pandemic, even though the previous day (18 June) had seen the highest COVID-19 mortality rate so far.

There are several lessons that can be learned from this first VAT-free day. In terms of health, the day was marred by crowds and a lack of compliance with safety regulations by both shops and shoppers. In this context, the number of infections recorded in the following weeks spoke for themselves. However, in economic terms, the Industry and Commerce Ministry reported that sales increased by up to 70% compared to last year, while the Tax Administration noted that electronic sales increased by 800%.

Second VAT-Free Day Only for E-Commerce

Considering the advantages and disadvantages, the Colombian government declared that the second VAT-free day would only apply to electronic commerce. Despite the fact that some shops did not have platforms for e-commerce, the economic balance exceeded all expectations, with the highest level of online sales in the history of electronic commerce in the country. Turnover amounted to around COP (Colombian peso) 320 billion, or approximately USD 86 million.



To support its clients, ECOVIS Colombia provides regular information about all government measures and its tax effects on companies. In addition, specific cases are continuously analysed in order to find workable solutions that help businesses, within the Colombian legal framework, to counteract or prevent the impending effects of the current crisis.

For further information please contact:

Leidy Marcela Espejo, Strategic Coordinator, ECOVIS Colombia SAS, Bogota, Colombia

Email: leidy.espejo(at)ecovis.co

Das Beratungsunternehmen Ecovis unterste aller Steuerberater, Wirtschaftspr

Dar

www.ecovis.com



More information:
http://https://



Keywords (optional):



Company information / Profile:

Das Beratungsunternehmen Ecovis unterstützt mittelständische Unternehmen. In Deutschland zählt es zu den Top 10 der Branche. In über 100 deutschen Büros arbeiten fast 2.000 Mitarbeiterinnen und Mitarbeiter. Weltweit sind es fast 8.500 in nahezu 80 Ländern. Ecovis betreut und berät Familienunternehmen, inhabergeführte Betriebe sowie Freiberufler und Privatpersonen. Um das wirtschaftliche Handeln seiner Mandanten nachhaltig zu sichern und zu fördern, bündelt Ecovis die nationale und internationale Fach- und Branchenexpertise aller Steuerberater, Wirtschaftsprüfer, Rechtsanwälte und Unternehmensberater. Jede Ecovis-Kanzleikann auf diesen Wissenspool zurückgreifen.Darüber hinaus steht die Ecovis Akademie für fundierte Ausbildung sowie für kontinuierliche und aktuelle Weiterbildung. All dies gewährleistet, dass die Beraterinnen und Berater ihre Mandanten vor Ort persönlich gut beraten.www.ecovis.com

PressRelease by

Requests:



PressContact / Agency:



published by: PresseBox
print pressrelease  send to a friend  

Date: 10/22/2020 - 02:00
Language: English
News-ID 1561670
Character count: 3763
Kontakt-Informationen:
Firma: ECOVIS AG Steuerberatungsgesellschaft
Ansprechpartner: Feedback to businesspress24.com about Pressrelease-id:
Stadt: Berlin
Telefon:

Meldungsart:
Versandart:
Freigabedatum:
Comments:



Number of hits: 160

Linking-Tips:



Direct Link to this PressRelease:






We would appreciate a link in your News-, Press- or Partner-Site.

Comments on this PressRelease






All members: 9 438
Register today: 0
Register yesterday: 0
Members online: 0
Guests online: 66


Don't have an account yet? You can create one. As registered user you have some advantages like theme manager, comments configuration and post comments with your name.