Certain foreign service providers must now register with Colombian tax authorities for VAT purposes.

On August 3, 2018, the Colombian government issued Decree No. 1415 of 2018 (the Decree), which requires foreign service providers (FSPs) to register in the Colombian tax registry (RUT) when providing services to Colombian recipients who are not required to collect value added tax (VAT) via the "reverse charge mechanism." (Generally, Colombians must collect VAT via the "reverse charge mechanism" on payments to nonresidents.)

The FSP may register through the "requests / PQSR" section on the Tax Authority's Web page, or through any other electronic mechanism that could be implemented by the Tax Authorities. To register, the FSP must provide:

— A copy of the good-standing, and/or incumbency certifications (i.e., proving the existence of the entity), of the FSP, translated into Spanish and apostilled

— The tax ID of the country of residence

— The main domicile / address, zip code, telephone numbers, web page, and email where the Colombian tax authority can reach the FSP

— The certification issued by a legal representative of the FSP (in Spanish and apostilled) where it is confirmed that the information provided is correct

— A copy of the ID of the FSP's legal representative

Once registered, the FSP will be required to collect VAT on services provided to Colombian recipients who are not required to collect VAT.

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