How to calculate VAT in Colombia: adding and removing 19% and 5%
Adding VAT is multiplying by 1.19; removing it is dividing by 1.19, not multiplying by 0.81. Examples in pesos and the new VAT calculator.
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Calculating VAT seems easy until you have to remove it. Adding 19% to a price is a simple multiplication, but when a price already includes VAT, many people multiply by 0.81 and the result comes out wrong. On a $1,190,000 invoice, that shortcut gives a base of $963,900 when the correct one is $1,000,000: an error of over $36,000.
To avoid this, we launched the VAT calculator from Colombia Move: add or remove 19%, 5%, or 0% VAT in one click. In this guide, we show you the formulas, examples with real pesos, and when you have to charge VAT if you sell on your own.
VAT rates in Colombia
The Value Added Tax (VAT) has three scenarios that the calculator covers:
- 19%, general rate: established by Article 468 of the Tax Statute and applies to most goods and services.
- 5%, differential rate: applies only to the goods and services listed in Articles 468-1 and 468-3 of the Tax Statute.
- 0%: for exempt goods, which are taxed at a zero rate with the right to a refund, and for excluded goods, which are outside the tax, such as a large part of the basic food basket.
If you do not know which rate corresponds to what you sell, consult the Tax Statute or your accountant before invoicing. Applying 19% to a differential rate good, or vice versa, leaves you in a bad position with the DIAN and the client.
How to add VAT to a price
If you have the price before taxes (the base), multiply it by the rate to get the VAT, or by 1 plus the rate to get the final price:
- 19% VAT: base × 0.19. Final price: base × 1.19.
- 5% VAT: base × 0.05. Final price: base × 1.05.
| Base | Rate | VAT | Price with VAT |
|---|---|---|---|
| $100,000 | 19% | $19,000 | $119,000 |
| $850,000 | 19% | $161,500 | $1,011,500 |
| $1,000,000 | 5% | $50,000 | $1,050,000 |
How to remove VAT from a price that already includes it
This is the most common mistake. If a price already includes VAT, divide by 1.19 (or by 1.05 if the rate is 5%) to get the base. The difference between the total and the base is the VAT.
| Price with VAT | Rate | Base (without VAT) | VAT included |
|---|---|---|---|
| $59,500 | 19% | $50,000 | $9,500 |
| $1,190,000 | 19% | $1,000,000 | $190,000 |
| $3,570,000 | 19% | $3,000,000 | $570,000 |
| $210,000 | 5% | $200,000 | $10,000 |
Why doesn't multiplying by 0.81 work? Because the 19% was calculated on the base, not the total. If you subtract 19% from the total, you are calculating it on a larger number. With $1,190,000, multiplying by 0.81 gives $963,900; dividing by 1.19 gives the correct base, $1,000,000. The calculator always uses division.
Do I have to charge VAT if I sell as a natural person?
Only if you are responsible for VAT. According to Article 437 of the Tax Statute, natural persons who in the previous year or in the current year had gross income from taxable activities of less than 3,500 UVT, and who meet the other conditions of the rule, are not responsible and do not charge VAT. With the 2026 UVT set by the DIAN at $52,374, that limit is equivalent to $183,309,000.
Selling your own used items (the sofa, bicycle, or cell phone you no longer use) is generally not a taxable commercial activity. If you have a business, are responsible for VAT, or invoice electronically, the landscape changes: check our guide on electronic invoicing for freelancers. And if you hire someone who is not required to invoice, we explain the DIAN support document.
A frequent case in leases: residential rental is excluded from VAT, while commercial (stores, offices, warehouses) pays 19% when the landlord is responsible. We expand on this in the guide on electronic invoicing in lease contracts.
How to publish your price with or without VAT
If you sell as a business responsible for VAT, publish the final price with VAT included. It is what the buyer will pay and avoids discussions when closing the deal. If you are not responsible, publish your price without adding VAT that you are not going to declare.
The VAT calculator is connected to the Colombia Move posting form: when you get the result, a button opens the form to post your ad with the final price already written. This way, you go from calculation to ad without copying figures by hand.
Editorial note: This guide uses the same formulas as the Colombia Move VAT calculator and regulations in effect as of September 24, 2026. This is general information: the rate for each product and your VAT status should be confirmed with the Tax Statute or an accountant.
Frequently asked questions
How is 19% VAT calculated?
Multiply the pre-tax price by 0.19 to get the VAT, or by 1.19 for the final price. For example, $100,000 × 1.19 = $119,000, of which $19,000 is VAT. This is the general rate in effect in 2026.
How do I remove VAT from a price?
Divide the price including VAT by 1.19 if the rate is 19%, or by 1.05 if it is 5%. The result is the base and the difference is the VAT: $119,000 ÷ 1.19 = $100,000. This works the same with the rates in effect in 2026.
Why can't I multiply by 0.81 to remove the VAT?
Because VAT is calculated on the base, not the total. Multiplying by 0.81 subtracts too much: with $1,190,000 it results in $963,900, when the correct base is $1,000,000, an error of $36,100 on a single 2026 invoice.
What VAT rates exist in Colombia?
The general rate of 19% (Article 468 of the Tax Statute), the differential rate of 5% for goods and services in Articles 468-1 and 468-3, and 0% for exempt goods. Excluded goods do not incur VAT. These are the rates in effect in 2026.
Should I charge VAT if I sell used items online?
If you sell your own used items as a natural person, generally no. VAT is collected by those responsible for the tax; natural persons with income from taxable activities below 3,500 UVT ($183,309,000 in 2026) who meet the conditions of Article 437 are not responsible.
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