Taxes 2019

loaferln wrote:

I am being told that there might be a 19 percent tax applied to all banking and credit card transactions there beginning the first of the year. Would appreciate if anyone has information on that subject.

A 19 percent tax for banking and credit-card usage?

Isn't 19 percent the VAT or value added tax already tacked onto 'luxury' items and added to the hotel bills of anyone who doesn't present a current tourist-stamp in a passport? 

Will that now be added to the existing fancy fees on withdrawing money from ATMs or using a VISA card to pay for groceries?

I'm launching the Bat Signal in the hopes that our tax super-hero Osage Archer will respond .. and set the record straight.

cccmedia

Yes, the 19% is for the already existing VAT or as they call it in Spanish, the IVA (Impuesto de Valor Añadido).

I have been unable to find anything at all about an extra tax of 19% for banking transactions and credit cards.  That would be in the news all over if it were to be put into effect or if it were even being discussed.

However I don't know if the elimination of the 4 x 1.000 tax that was in effect for credit cards and bank transactions, will still remain in effect for cash transactions to discourage use of cash.  That tax is 4 pesos per 1,000 pesos spent, or 4 mils, and is collected at the point of retail sale.  Several articles back in August 2018 talked about this:

https://www.pulzo.com/economia/proponen … a-PP533967https://www.eltiempo.com/economia/secto … ivo-251448https://www.america-retail.com/colombia … el-4x1000/