Taxing platforms with VAT legitimate activity in Colombia, according to an expert



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In this July 17, 2017 photo, the Netflix logo on the screen of an iPhone in Philadelphia. Much of Netflix's attention is focused on its insatiable appetite for original content, but this multi-million dollar investment by the streaming giant involves another challenge: bringing each program together with subscribers who will benefit from it. more. Netflix content tag, then identifies the habits of the viewer. (Photo AP / Matt Rourke, Archivo)

The imposition of tariffs such as value-added tax (VAT) on digital platforms in Colombia gives them "sufficient legitimacy" and allows them to contribute to the country . Today, we ask Andrés González, a specialist in tax law, to ask him: "We ask them to financially support this tax, which, in my opinion, means that their work, their activity, has sufficient legitimacy to contribute, "said González.

The expert pointed out that to the extent that applications such as Uber and Netflix are legitimized, the country takes a "fundamental step" to understand the dynamics of the economy, which he considers as digital, and leave side "the tension with the activity."

González said that the digital economy and platforms have created a new form of enterprise that involves "big challenges" for the three goals and a response from the authorities, which in Colombia has been reflected in the tax reform approved in 2016.

He said that with this change, a "fairly new mechanism" was created, which established that all services from abroad collect and pay the VAT in front of the National Tax and Customs Department of Colombia (DIAN).

"The mechanism is basically that in these solutions when the transactions do not have a VAT withholding agent in Colombia the foreign entity creates mechanisms or registrations before the DIAN, which gets the tax of these people who receive their services and delivers them by electronic systems, "he adds

from this month applications like Uber, Netflix, Cabify, Deezer and Airbnb.Others will have to pay this tax, which is 19% in Colombia, and the first information on the amount collected will be delivered in October.

Applying this tariff will generate, in the opinion of González, a panorama of fairness between digital and traditional businesses, and also allows "parity" and "give force" to these new economies.

Similarly, the setting of other countries like England and Australia, where are applied the "Google task" and the "Ama task" zon "and the recommendations of organizations such as the European Community and the Organization for Economic Co-operation and Development (OECD), which Colombia signed last May.

"The OECD itself has recognized, the economy at the moment is digital, the economy at the moment is technological, it seems to me that recognize and adapt the regulations Taxes to this reality and create solutions that understand the reality of these companies Good for platforms, for users and for the country in general, "said Gonzalez. EFE

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