Economy

Colombian Congress approves 3 days without VAT to boost consumption amid the pandemic

On June 19th, July 3rd and July 19th, Colombians will be able to buy products without the 19% tax under the condition that the payment will be made in debit or credit card

Colombian pesos and coins. Photo: Shutterstock
  • With this, the Colombian government expects to help consumers to save COP 500 billion (about $130 million);
  • As part of the economic stimulus package, restaurants, cafes, bakeries, and bars will be exempt from paying an 8% tax up to December.

The Colombian government approved three days without Value-Added Tax (“VAT”) to support the revival of the country’s economy, according to Pulzo.

On June 19th, July 3rd and July 19th, Colombians will be able to buy products without the 19% tax under the condition that the payment will be made in debit or credit card, or other electronic payment and only up yo three units of the same product can be purchased.

With this, the Colombian government expects to help consumers to save COP 500 billion (about $130 million).

READ ALSO: The largest restaurant in Latin America plans drive-in facilities to attract clients and preserve social distancing

What can Colombians buy without the tax?

  • Clothing
  • Items for pedagogical activities
  • Toys
  • Household appliances
  • Sports equipment
  • Bicycles
  • Skates
  • Computers
  • Smartphones
  • Agricultural supplies

READ ALSO: Reserve fund and structured e-commerce: how would retailers wish they had prepared for COVID-19 in Brazil?

As part of the economic stimulus package, restaurants, cafes, bakeries, and bars will be exempt from paying an 8% tax up to December, and for commercial premises that have not been able to open, taxes will be suspended until July 31.