For the third time this year on Saturday, November 21, the Colombian Government is supporting an IVA (or VAT) free day to encourage the people of Colombia to head to the shops or buy online.
It is, of course, to help lift sales in retailers that have been badly impacted by Covid-19 and, it seems to be having the desired effect.
Retail sales reportedly jumped five-fold on the first tax holiday on Friday, June 19. According to Reuters, sales rose at least “five times compared with a regular day during the quarantine and were up 30% on levels seen before the lockdown started, the government said in a statement”.
Colombia VAT, which is known as the IVA tax, is the country’s main indirect tax and reaches 19% on most goods and services sold in the country.
What can you buy on IVA-free day in Colombia?
To give you an idea of what kind of items your friends and family could be buying in Colombia on Saturday, November 21, here is a small selection of the things that are taxed at 19%.
- Clothing and footwear
- Airline tickets
- Spare parts for cars
Whether they are buying in person or online, these items and many more will be nearly a fifth cheaper than normal.
What does this mean for remittance?
There is no doubt that many of our Colombian customers will look to send money home so friends, family and loved ones can make the most of this generous break.
With Christmas coming and a good chance that less people will be travelling back home this year, we are expecting to see many of our customers send money to Colombia instead. There is of course the added reason that for a good number of people 2020 has been far tougher than most, so this is an opportunity to buy something new in time for the festive season.
How can I send money to Colombia in time for IVA-free day?
As with all of the countries that Small World enables customers to send money to, there is a variety of ways you can make your money transfer. For those sending to Colombia, popular methods include:
- Bank deposit: Deposit money directly to your beneficiary’s bank account – this is quick and easy for you and whoever is receiving.
- Cash pick-up: Send money to Colombia to be picked up at one of 2,587 locations across the country – pick the one that suits your beneficiary the best
- Mobile wallet: If the person you are sending to is self-isolating, doesn’t have a bank account or simply wants to access money fast, it’s worth considering a remittance via mobile wallet
However you transfer money make sure you do it in good time for the IVA-free day, because this is the final occasion this year your money will go 19% further in Colombia for a whole range of products.
The different ways to send money to Colombia:
1. Cash Pick-Up
2. Bank Deposit
3. Mobile Wallet
4. Airtime Top-up
Our main partners in Colombia are: Bancolombia; Davivienda; Pagos Internacionales; BBVA; Banco de Bogota and Banco Agrario de Colombia. And don’t forget, your first digital transaction is fee-FREE.