There is confusion about the payment of the Value Added Tax (IVA) in Colombian Hotels, which right now is 16% of the Hotel rate. To clarify, we will discuss the conditions to be meet in order to be eligible for the 16% tax exemption.
The benefit is for foreigners. Colombian or foreign companies pay the VAT.
- Guest must not reside in Colombia.
- Guest must not have Colombian nationality.
- Guests must not have dual citizenship with Colombia.
- During the last 365 days, the guest should not had been more than 179 days in Colombia.
- The benefit is just for Tourism Packages. This includes accommodation in the Hotel and something more, whether breakfast , tours, etc. If the guest only pays for accommodation then you must pay the VAT .
- The purpose of the trip should be tourism. The entrance stamp in the passport indicates the purpose of the trip according to the information given to the immigration official at the airport.
Disclaimer: The Hotel is not a financial adviser and therefore this document is not a recommendation. Not all hotels give these benefits to their guests. The law changes frequently so the guest must verify prior to the time of payment. We are not tax advisors, so you should not take this as tax advice.