Colombian Tax Authority Issues its Position on the Tax Treatment of Web-Hosting and Certain other Technological Services

Colombia's National Tax Authority (DIAN) recently issued its position on the taxation of certain technological services, including web-hosting services, cloud computing services and data transfer services.

Web-hosting services provided to a Colombian resident are treated as technical services subject to VAT if provided in Colombia, but not if provided abroad. However, for income tax purposes, such services will be subject to tax whether provided in Colombia or abroad (10% withholding tax). …