COLOMBIAN VAT

Some of you may be aware of this. I just came upon it ordering on Amazon.

As of January 1, 2026, the Colombian government has officially ended the tax exemption for low-value international purchases.  

For years, many shoppers enjoyed the "$200 rule," where anything under $200 USD sent from the U.S. via mail or courier (like Amazon) was exempt from the 19% Value Added Tax (VAT/IVA). That era has ended.  

What has changed?

The Colombian government passed a tax reform (part of the 2024/2025 financial bills) specifically designed to "level the playing field" for local retailers. Here is the breakdown:  

• **The 19% VAT is now mandatory: All purchases from platforms like Amazon, Temu, and Shein are now subject to the full 19% IVA, regardless of how cheap the item is. Even a $10 book will now trigger this tax.  

• De Minimis removal: The exemption for shipments under $200 (the "de minimis" threshold) has been effectively abolished for these digital platforms to increase tax revenue and protect national commerce.

• Automatic Collection: Amazon now calculates this tax at checkout as an "Import Fees Deposit." This isn't Amazon trying to pocket extra cash; they are legally required to collect and remit these funds to the Colombian tax authority (DIAN).  

Why the change?

The Colombian Ministry of Finance argued that the tax-free status of international sites created "unfair competition" for Colombian businesses, which are required to pay VAT on everything they sell. By removing the exemption, the government expects to generate over $640 billion COP in additional revenue by the end of 2026.

I stand corrected on the above message….Packages valued at USD 50 or less (non-commercial) can enter without paying Colombian VAT. 

Everything else is correct. This group is great. Thanks for pointing that out.