Colombia starts taxing digital platforms

From July 1, the Value Added Tax (19%) started to apply to foreign digital platforms that provide services in Colombia, including Netflix and Spotify. The measure had been included in the 2016 tax reform.
The National Directorate of Taxes and Customs (Dian) stated that service providers can already register as responsible for VAT in Colombia and need to manage the Unique Tax Registry (RUT), local newspaper El Tiempo reported.
In this way, Netflix monthly subscription would rise from CO$ 32,900 (USD 11.4) to CO $ 39,151 (USD 13.6). However, not only digital platforms must comply with this obligation but also all service providers from abroad, except those excluded from VAT payment, such as cloud computing and hosting services.