How to get a VAT ID number in Colombia?

[#1]

Hello, the last July Month I got a notification by UPwork in which I should provide an ID VAT TAX number of nine numbers. Despite of I have added my TIN number (Colombia NIT) in my case as natural individual I added my ID number.

And when I want add that same number into the space I read that the VAT ID is different to my NIT number.

I called to the DIAN but they said to me that they don't know what is an ID VAT, that I should ask to UPWORK. 

[#2]

Hi Piedad Loren,

That is correct! Your Colombia VAT ID number is different from your tax identification number. It is a unique ID that you may request from your government by registering for VAT in Colombia. Your VAT ID has 10 alphanumeric characters. It starts with a number and can end with a letter and looks like this, for example, 012345678A.

To learn more, visit the Colombia tax authority’s website.

[#3]

• Hello Arjay M, that same that you are saying in written way:

  "Your VAT ID has 10 alphanumeric characters. It starts with a number and can end with a letter and looks like this, for example, 012345678A".

   I said that same to the DIAN wich is Colombia Tax authority, but three people who answered my call said me that they don't know what is that VAT ID number, that there is not alphanumeric characters.   So I don't know how I should ask about it again to the DIAN. 

• Also I don't understand why you said that :"A VAT ID has 10 alphanumeric characters. It starts with a number and can end with a letter and looks like this, for example, 012345678A". Since  when I want to enter a VAT ID number here on UPwork into the space for doing that I read that I only can write 9 numbers and not 10 numbers as you are saying.
• So I really don't understand if the UPwork information is not adapted.  
• For the moment I don't have a VAT ID number, when I going to the supermarket I should pay IVA despite of I don't have. 
• So I really I don't know what to do know. 

[#4]

Hi Piedad Loren,

I'm sorry if you're having difficulties completing your Tax Information. I've converted your post into a support ticket to give it the attention it deserves. Rest assured that one of our agents will contact you here with further assistance.

[#5]

Hello Arjay, thank you I got a message by Robby, and he wrote to me that he should ask to the property team for this. That he will give me an answer when he has got the right information. So I should wait with patient. However, I would like to know if Can I continue to apply to job post while I got the answer related with my VAT ID number? 

I hope your answer. Thank you very much.

Best regards,

Piedad

[#6]

Yes, Piedad. You should be able to continue applying for jobs while you wait.

[#7]

Hello Luiggi R, thank you. However, last year a person from Upwork sent me a message where said that if I don't add my VAT ID number into the Upwork, I cannot get my money despite of I have worked.

Nota: However, on my profile in the Tax information I cannot enter the 10 numbers related to VAT ID number. Because only is available the option for entering 9 numbers. 

This is a part of the message:

Arnold E. (Upwork Help)

Aug 6, 2023, 9:20 AM UTC

Hello Piedad,
 
Thanks for reaching out.   I'm stepping in for Jobeth.
 
You can continue working and submitting proposals on Upwork even if you did not enter your VAT information. This will prevent you from withdrawing your earnings on the platform.
 
If you did not enter any VAT information, these are the thing that would happen.
 
Examples of services that VAT applies to in Colombia
 

• Membership fees, Connects purchases, and freelancer service fees

 
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.

Your Colombia VAT ID number is different from your tax identification number. It is a unique ID that you may request from your government by registering for VAT in Colombia. Your VAT ID has 10 alphanumeric characters. It starts with a number and can end with a letter and looks like this, for example, 012345678A.
 
To learn more, visit the Colombia tax authority’s website.
 
Since we are not tax experts here, I strongly suggest that you contact your local tax advisor and ask what you can use instead of your VAT/tax identification.
 
For more details, you can check and review the following help articles -
Colombia-VAT-for-freelancers
https://www.dian.gov.co/
https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-num...
 
I hope I was able to clear this up for you.
 
This ticket may be marked as solved, but your additional comments will automatically reopen the ticket so you can reply.
 
Feel free to let us know if you have any other questions or concerns. I'm more than happy to help you with this.
 
Best Regards,
 
Arnold

[#8]

Hi Piedad,

 I have requested the assistance of our team. One of our agents will reach out and assist you directly via a support ticket.

[#9]

Hello Joanne, 

I have read all the comments about this issue and has not had any solution today. I tried to submit my tax information and present the same problem. In Colombia, we do have just one Tax ID that apply for services within the country and overseas. Is it possible to rise a request to the financial or tax department and see from our reality how you can give freelancers in Colombia equal job opportunities?

Thank you

[#10]

Hi Maria,

I’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon with more details and to assist you further with your Tax Information concerns.

[#11]

Hello Arjay

I have the same problem. The DIAN says that my VAT ID is the same for paying taxes. We pay taxes on everything we consume.

Now, concerning the provision of services, banks collect their management fees and collect taxes directly from the money that reaches our account. The only way for someone to have to pay more taxes is if they exceed an annual amount, but at this point, there is still a long way to go to reach the amount

[#12]

Hi ArjayM,

That's not correct. Colombian VAT ID and ITIN numbers are the same. to learn more, visit the Colombia tax authority’s website.

Has been 7 months since we having this issue and you all looks even more confused than us.  We understand it is not up to you and you all moderators are just trying to help, but we need a expert that understand COLOMBIAN/USA/UPWORK system. 

I just check my parents Colombian ITIN (NIT) number and it match your 9 digits mainly because their ID numeration was different back then. But they are 70's years old and we are 30's and now we use 10+1 digits.  

To learn more, visit the Colombia tax authority’s website.

- Alejandro

[#13]

This document by the DIAN  explains how to submit your VAT Tax return. https://www.dian.gov.co/tramitesservicios/Tramites_Impuestos/Documents/Instructivo_IVA_en_el_exterio...

[#14]

Hello Angie Daniela, thank you for the link. However, the link you shared relates to the VAT Tax return. And in my case based on the fact that I don't have a job, and I have not generated the amount of money for my activities related to selling services I should not pay a VAT Tax return. 

I asked about the VAT ID number. 

THE VAT ID number is different from the VAT TAX return. If I had won more than 3.500 UVT (United of Value Tributary)in Colombia. This year 2023.  1 UVT = $42.412 COP Colombian Pesos. if you do this operation 3.500 x 42.412= 148.442.000 million of COP. And in my case, I never have got that. 

However, I should keep in mind your link in order to learn how is that process. Since I am new to all these things. Thank you.

[#15]

Hello Piedad, VAT Return is not related to the amount of money you make, is simply a tax every Colombian has to pay for providing services in foreign territory. This tax must be paid every two months. Once you submit your VAT return you will be provided the VAT ID number.

[#16]

Hi Angie! Sorry for bothering you, but I'd like to know what do you mean with "submit your VAT return"? I have the same issue and doubts as Piedad. Thank you!

[#17]

Hello Angie Daniela, your last message mention an important information: 

"Once you submit your VAT return you will be provided the VAT ID number" based on that part of your message I have the following questions:

1. How many numbers have the VAT ID number that a person get once submit his VAT return for a natural person?

2. What is the amount that I must pay when declaring (return) VAT?

Thank you for your attention, I hope your answer. 

[#18]

Hi Angie,

Thank you for your information. But honestly I still don't understand, and every time I look for information I end up more lost. I have also received this same communication. The communication that all Colombians receive is that in order to avoid being charged VAT we must present a VAT ID. In the link you provide is the declaration of the amount received for your work on a bimonthly basis as I understand. So when you make that report and get the VAT ID, Upwork will stop charging you vat?

Thanks again!

[#19]

Looking a little bit at the document provided by Angie it corresponds for companies, for the VAT ID in Colombia I verified it with my RUT number and it works. I hope this information is useful.

[#20]

Hello Piedad, the TIN (NIT) is the rut in Colombia and you can get it as a natural person online at the DIAN website.
It is true, that it is the ID number, but it ends with an additional number given by the DIAN at the time of the procedure. Regarding the question of the VAT in Colombia (I have not taken it out for the same reason), I think it is for large companies, You have to continue investigating, but a good start when you have your first job to get the RUT. I hope this helps you. Regards

[#21]

Hi! I have the same issue with the VAT ID. I tried using my RUT like Fernando, but in my case, this number has more digits. My RUT has 10 digits, and with the final number, it becomes 11 digits. When I try to enter it in the form field, Upwork doesn't accept that number. Well, what should I do?

[#22]

Hi Andrea Gisselle,

Thank you for reaching out, and I'm sorry if you're having difficulties adding your VAT number to your account. It looks like the VAT Number needed on your account is only Nine (9) characters, and all are numeric.
 
Please contact your Tax Authority and ask if they provide a 9-digit VAT Number. If yes, you can use that for the VAT section of your Tax Information. Let us know if you need further assistance afterward; we'll look into that for you.

[#23]

Thank you Arjay,

It seems that for younger professionals whose ID numbers are longer, the platform hasn't adpated for this issue accepting more than 9 numbers. I am older and was able to introduce my 8 ID numbers plus a 9th number and it worked. So the site should accept more than 9 characters for the VAT ID.

Thank you.

Best,

Santiago

[#24]

Exactly, the application should expand the number of digits. Colombian authorities cannot assign me a new RUT number that only has 9 digits because this category does not exist. Here, everything is handled with the identification number, and the new generations have numbers with up to 10 digits, plus one more used for financial matters, making a total of 11 digits.

[#25]

Is there a way we can maybe create a ticket to have the VAT number slots increased? Because mine is 11 digits as well and it only allows 9 digits tops. The info is correct but the number of digits is not up to date.