VAT REFUND FOR FOREIGNERS
In the text of the Agreement, the expressions “VAT” and “Sales Tax” have the same meaning and shall be understood to include a similar tax that may be imposed in the future, in addition to the tax levied on the sale of goods and services in the Republic of Colombia. The governments of Egypt, Peru, Chile and the Republic of Colombia have signed an important document, which is the mutual cooperation agreement, in which it has been agreed to facilitate the method of refunding VAT to foreigners. The government of the Republic of the assigning territory undertakes to refund to the persons contemplated in this Agreement, the Value Added Tax, hereinafter VAT, paid by them within the territory of the assigning Party in the case of the Republic of Colombia, through the Bank of the Republic, to the account created by the respective public authority in the international clearing house system.
Consequently, the Tax Authority of the taxpayer's place of residence may request all kinds of evidence regarding the departure from the territory, such as a surcharge on the passport or a form with stamps from the corresponding customs office proving that the tourist left with the products. The mechanism for managing the agreement is in charge of the National Tax Directorate and VAT Responsible Parties in Colombia and, by complying with the terms and procedure of the regulation, they may obtain a tax refund.
To download the DIAN guide on how to do it, you can click here.
To find out where to file your tax return in Colombia based on your location, click here here or copy and paste this link into your browser:
https://www.gov.co/ficha-tramites-y-servicios/T329
To enter the information module for VAT refunds for tourists, click here or copy and paste this link:
**Mutual Cooperation Agreement on VAT Refunds**
In the context of globalization and the increase in international tourism, it is essential to establish legal mechanisms that facilitate mobility and economic exchange between nations. In this regard, a Mutual Cooperation Agreement has been signed between the governments of Egypt, Peru, Chile and the Republic of Colombia, the main objective of which is to facilitate the refund of Value Added Tax (VAT) to foreigners. This document establishes that the expressions “VAT” and “Sales Tax” have the same meaning, covering not only the tax currently in force but also any similar tax that may be established in the future.
The VAT refund to foreigners is not only a measure that takes into account the interest of tourists, but also stands as an essential component to strengthen local economies and promote sustainable development. By implementing these mechanisms, the signatory countries are taking a step towards regional economic integration, recognizing the importance of working together in an interconnected world where tourism plays a crucial role in cultural and commercial exchange.
Finally, it is imperative that tourists are properly informed about the procedures required to obtain a VAT refund, as well as the documents necessary to validate their request. Education and promotion of these programs are key to maximizing their benefits, not only for visitors, but also for the economy of the host country. Efficient administration of this agreement can position Colombia as a benchmark in the policy of tax refunds to foreigners, which could stimulate an increase in tourist influx and foster a closer commercial relationship between the signatory countries, thus benefiting all those involved.
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