The District Tourism Institute (IDT) of Bogotá launched a strong warning against one of the measures included in the tax reform that it is in Congress and seeks to eliminate the exemption from VAT (0%) for foreign tourists not residents, since, according to them, it would generate a strong impact on the capital economy.
In a recent statement they pointed out that “this decision would imply that tourist services That today they do not have this tax, they will be taxed with 19 %, which could have an adverse effect on the arrival of visitors, the generation of currencies and the growth of employment in one of the most dynamic sectors of the national economy and the capital. ”
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The IDT noted that tourism figures show that this sector has become one of the pillars of the national economy and that in 2024, Colombia received USD $ 10,220 million in foreign currency for tourism, an increase of 14% compared to 2023.
“Only in the first half of 2025, the country already accumulated USD 5,248 million, with a growth of the 11.4%, and the projection aims to exceed the USD 11,100 million at the end of the year, ”they said.
The change in tourism VAT would affect the arrival of new travelers to the country.
Chatgpt image
On the other hand, they reported that in terms of visitors, the country reached in 2024 the figure of 6.7 million international tourists, and between January and July 2025 they had already entered 3.3 million more, so they make it clear that this dynamism shows that the tax incentive policy has been a key factor in the positioning of Colombia as a competitive destination.
Bogotá, the most exposed
Thus, the coasts, in the district, reiterated that as the main receiver of visitors, The capital would be the city most affected by the proposed change, especially when in 2024, Bogotá received 14 million visitors, of which 1.8 million were foreigners. Between January and July 2025, more than 1,094,000 international tourists are already counted, with the expectation of closing the year with more than 2 million, an unprecedented figure.
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“This ascending trend is not coincidence: it is part of a strategy that has allowed Colombia to position itself as a competitive destination. However, this advance is at risk. While countries of the region such as Chile, Peru, Ecuador, Uruguay and Canada maintain a VAT of 0 % for foreign tourists, Colombia would be taking an opposite course that would directly affect their appeal against similar destinations,” they said.
Meanwhile, they indicated that tourist expense in the city also reflects the magnitude of the phenomenon, since only in December 2024, the consumption of visitors reached $ 854,000 million, and the annual impact of tourism exceeded $ 8 billion, a figure equivalent to the budget of an intermediate city. In addition, the sector holds about 3% of employment in Bogotá, which means more than 114,000 Formal jobs in accommodation, gastronomy, transport, culture and recreation.
The modifications that will be made.
City Hall of Bogotá.
“Eliminating VAT exemption would put these results at risk and stop the growth trend that has sustained the capital as a leading destination. Currently, non -resident foreign tourists access a 0% VAT rate in several services, provided that payments are made in foreign exchange,” says the statement.
Among the affected services they listed the accommodation in hotels, hostels and the like, Tourist packages with accommodation, transport and excursions sold by registered agencies, receptive tourism, such as tours, cultural, ecological or recreational excursions and services to international cruise passengers in transit in the country.
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The concern also has a regional component if one takes into account that several competitive countries in the tourism market such as Chile, Peru, Ecuador, Uruguay and Canada; They keep the VAT rate at 0% for foreign tourists.
For Andrés Santamaría, director of IDT, the elimination of exemption would be “a hard blow to the country’s competitiveness”, while indicating that the measure slows down the growth of a sector that has demonstrated Ability to generate employment, attract investment and project Colombia on the international stage.
Tourists
Source: Istock
In that sense, Bogotá called on the Government and Congress to rethink the proposal and maintain the 0% VAT rate for foreign tourists, considering it an incentive proven to boost the economy and strengthen the projection of the country as a tourist destination.
Daniel Hernández Naranjo
Portfolio journalist
