Not everything will go up with the Tributaria: tickets for concerts, movies, theater and soccer games could go down

Article 24 of the approved tax reform, which in the absence of conciliation will become law, speaks of national source income, among many products and services; within those, the government indicates certain shows and cultural and sporting events. Well, within the debate in the House of Representativesit was agreed that said acts will be exempt from VATThis means that not only the filmmakers will benefit, the spectators will be able to purchase their tickets at a lower cost, since they will not be taxed on Value Added Tax.

In title VI “Mechanisms to Fight Tax Evasion and Avoidance”, specifically in article 58, which modifies the tax statute, specifically in article 24 of this, reference is made to national source income. It is precisely there where 16 sets are grouped, which, according to the regulations, are from material and immaterial exploitation in Colombia, and that logically it can be said that they are inputs of national origin.

This is how the reform explains it:

“National source income is considered to be income from the exploitation of tangible and intangible assets within the country and the provision of services within its territory, permanently or temporarily, with or without its own establishment, as well as those derived from the significant economic presence in the country. Income from a national source also constitutes income obtained from the sale of material and immaterial assets, in any capacity, that are within the country at the time of their sale.”

Some of the goods and services that are presented in this list are: income from capital, logically the alienation of real estate, dividends or shares of Colombian companies or of residents whose capital has been obtained abroad, in addition to the exploitation of mines, natural reserves, deposits, forests, among others.

However, number 5 speaks of how cultural, artistic and sports activities are considered a national source:

“5. Work income such as salaries, commissions, fees, compensation for cultural, artistic, sports and similar activities or for the provision of services by legal entities, when the work or activity is carried out within the country.

Although the totality of the exemption approved by the House of Representativesit is a fact that the article that precisely removes VAT from all these events and shows was approved, which means that the ticket office for the cinema, theater, sporting and cultural events will no longer be recorded.

Thus, from 2023 there could be good news for the fans and spectators of these shows, since the cost of the tickets would be lower, at least because they would not have to be paid. VAT.

Among the many changes that the national fiscal policy has undergone, perhaps the most significant, at least under the pretensions of the national government, is that of the initial 25 billion that was intended to be collected, now only 21.5 billion will be collected, a figure that would be progressive because in 2024 it is intended to raise 22.7 billion, in 2025 it would close with 23.1 billion and in 2026 the figure would be 24.4 billion.

“The composition changes over time, because there are some taxes that tend to go down and others that tend to go up. Those that tend to fall more importantly are those that appear as underground, which are basically oil, coal and other minerals, which are the ones that collect the most in the first year,” explained the Minister of Finance and Public Credit, José Anthony Ocampo.

KEEP READING: