Colombia and Argentina unveil new VAT initiatives

The Colombian Congress, led by the Centro Democrático party, has introduced a bill to allow the government to decree up to three "Day without VAT" events each year. The measure would apply to both physical stores and e‑commerce, prioritising goods with at least 50 % national content to boost domestic production and support small and medium retailers. Proposed categories include clothing, appliances, computers, sports equipment, toys, school supplies and agricultural inputs, each with specific tax‑free limits expressed in UVT units.

In Argentina, Economy Minister Luis Caputo announced an expansion of the VAT refund scheme for small and medium enterprises, allocating about $50 billion pesos to accelerate the return of tax credits tied to purchases of capital goods, export‑related VAT, and other refundable balances. The program aims to improve liquidity for SMEs facing high financing costs and tax‑administration burdens, with refunds to begin in the coming days.