This Is How the Tax Reform Would Affect 'Tech' Platforms Such As Netflix and HBO

Tax attorney Rafael Lafont was mentioned in an article by El Tiempo about how Colombia's tax reform will affect digital platforms such as Netflix and HBO in the country. The proposal establishes that these digital streaming platforms must pay an additional tax to the Value-Added Tax (VAT). Mr. Lafont explained that although these companies do not have a physical presence in the country, they could be subject to paying a tax based on the number of registered Colombian users.

"We would be seeing in this type of platform that although they do not have a physical presence in the country, that is, they do not have an office, they do have registered users, in such a way that if they exceed this registration limit they would be subject to taxes and would have to determine, through a study, what is the income associated with Colombia for a corresponding tribute to be established," he said.

READ: This Is How the Tax Reform Would Affect 'Tech' Platforms Such As Netflix and HBO (Subscription required)