Colombia

Colombia introduces tax changes under emergency legislation

Following the failed tax bill that Congress rejected at the end of 2025, the government of Colombia declared an Emergency Status to have the authority to temporarily introduce some tax changes. These were enacted as recently as 30 December 2025 and will be effective throughout 2026.

Meanwhile, the Constitutional Court will soon examine if this extraordinary legislation is to be upheld or otherwise.

Some of the recently introduced rules are highlighted below:

Value-added tax (VAT) and consumption tax

• Online gambling is to become taxed (currently subject to VAT temporarily through the end of 2025), including the obligation for non-resident operators to register for, collect, and file, where applicable.

• The so-called ’de minimis‘ exemption for low value shipments is to be narrowed to 50 United States dollars (USD) in value.
• During 2026, liquors, wines, aperitifs, and similar products will be subject to VAT at a rate of 19% (previously 5%).

• For 2026, the consumption tax on liquors, wines, aperitifs, and similar products will be increased as follows:
• Specific component: USD 750 for each alcoholic degree in a 750 ml unit or its equivalent (previously USD 342).
• Ad valorem component: 30% on the retail sale price, before taxes and/or participation, as certified by DANE (previously 25%).

• For the taxable year 2026, the taxable event for cigarettes and processed tobacco shall consist of the consumption of cigarettes, processed tobacco, derivatives, substitutes, or imitations.

Equity tax

For 2026, the equity tax will apply to net worth equal to or greater than 40,000 tax value units (UVT) (2026: USD 557,000).

New progressive marginal rates are established from 0.5% to 5%, as follows: