With the tax reform passed last year, came into effect on the first of January the new law that consumption tax in establishments serving food or drink.
Consumption tax is determined for establishments whose business is the sale of food and beverages prepared either in supermarkets, restaurants, cafes, ice cream, fruit, pastry shops, bars and other places where food or dispense liquor.
The Tax and Customs Branch Florence, Villaruel Hernando Vasquez, Director explained the implications of this new tax, “we want to present some items that went into effect and which have to do with the consumption tax, which is determined for establishments whose activity is the sale of prepared foods and beverages. There must collect the tax that has a rate of 8%; This tax will be charged in areas where food or drinks to eat in place, to be borne by buyer or home delivered “are sold.
In this reform indicated that natural and legal persons who are owners of restaurants, bars, cafes, ice cream and other businesses where food and beverages are sold, will no longer be responsible for the VAT tax, except businesses operating franchise which will continue to charge VAT at 16%.
How will be charged
The tax shall be discriminated on the collection account, entrance register, invoice or equivalent document. In any case the tip, being voluntary, will be part of the basis of the consumption tax.
Who will charge
Before this reform the Business Tax Services for you of bars, cafes, restaurants, ice cream parlors, pastry shops and bakeries were taxed activities with 16% VAT which alone was charged to the customer if the business owner was a company or individual in the common system, but now he must collect all establishments.
The Tax and Customs Branch Florence director pointed in places that must collect the tax on consumption, “are establishments whose activity is the provision of meals for consumption as breakfast, lunch or dinner, hot and cold dishes for snacks Quick regardless of the time at which the service regardless of the name to be given to the establishment lends “.
Similarly establishments exclusively engaged in the sale of those cafes own meals, ice cream, fruit shops, bakeries and establishments, in addition to other business activities, providing the sale of food service.
According to Vasquez Villaruel, this tax is good for the consumer, “because the value of the products should decrease by 8% which is good for the consumer and for the employer because the services must lower price”.
Now all restaurants, bars and any establishment that dispenses food or beverages must pay the excise tax.