Colombia imposes tax reforms on the Internet industry

Colombia has passed new tax rules that impose a 19% value added tax on Internet services paid by creditcard, primarily targeting over-the-top (OTT) services such as Netflix, Uber, Spotify, and Airbnb. In addition, large mobile data packages will be taxes with 4%. A representative of the telecommunications sector responded that the measure ‘is going to generate user decline’, while Uber has stated that ‘it helps to see our activity as legitimate and is the first step towards a smart regulation’.