Colombia Clarifies Tax Rules for Digital Platforms

October 24, 2025

Featured Partners

After publishing the resolution introducing the reporting obligation for digital platforms in December 2024, the Colombian Tax Authority (DIAN) issued another resolution in September 2025 that amended it. It also clarified the meanings of specific key terms and definitions. Additionally, the latest resolution amended reporting criteria and aligns the national framework with international standards.

Impact on Digital Platform Operators

The latest resolution differentiates between two categories of digital platform operators for tax purposes. The first group is resident or domestic digital platform operators with permanent establishment (PE) or an effective seat of administration (ESA) in Colombia. These digital platform operators are subject to domestic tax obligations.

The second group refers to non-resident or foreign digital platform operators that are neither incorporated in Colombia nor have an ESA in Colombia or in a participating jurisdiction. However, these operators facilitate the so-called qualified activities involving Colombian tax resident sellers. Under the resolution, these non-resident operators will be required to submit an annual information report to DIAN, where the first reporting period is Q4 of 2025. Consequently, the first due date for submitting tax returns is February 27, 2026.

The definition of qualified activities covers three main elements: provision of qualified services to local consumers, the supply of goods by resident sellers, and the rental of real estate located in Columbia. Qualified services, on the other hand, are activities performed for consideration, including the leasing of real estate and the means of transportation, personal services, and any other service defined by applicable regulations as subject to reporting.

Conclusion

As clarified by the DIAN, non-resident digital platform operators must report information such as the seller’s tax ID and financial account identifiers and tax residency jurisdiction, the total amount of relevant transactions, the number of qualified activities, and any fees, commission, or taxes withheld, electronically in XML through the Tax Authority's portal. Those who fail to comply risk being penalized with up to USD 97,000.

Source: Colombian Tax Authority (DIAN), KPMG, PwC

What is the main purpose of Colombia’s latest DIAN resolution on digital platforms?

The resolution clarifies reporting obligations for both resident and non-resident digital platform operators, ensuring consistency with international tax standards.

Which digital platform operators are affected by the new DIAN resolution?

Both domestic operators with a permanent establishment in Colombia and non-resident operators facilitating qualified activities involving Colombian sellers are affected.

What are qualified activities under the Colombian DIAN resolution?

Qualified activities include providing services to local consumers, selling goods by resident sellers, and renting real estate located in Colombia.

When is the first reporting due date for non-resident digital platform operators?

Non-resident operators must file their first annual report by February 27, 2026, covering the fourth quarter of 2025.

What information must digital platforms submit to DIAN?

Platforms must report details like sellers’ tax IDs, financial account identifiers, tax residency, transaction amounts, and any related commissions or taxes withheld.

What penalties apply for failing to comply with DIAN’s reporting obligations?

Non-compliant digital platform operators risk fines of up to USD 97,000 for failing to meet Colombia’s tax reporting requirements.

VAT

Share this article