Google Ads in Colombia: 19% VAT and agency accounts

In short

For advertisers from Colombia who haven’t provided tax information, Google adds 19% VAT to invoices. Under the significant economic presence rules Google itself pays a 3% tax on revenue from Colombian customers with no withholding, so invoices from January 2024 shouldn’t be subject to withholding. Payment methods depend on the account’s currency and settings. For several markets and payment in dollars or USDT, an agency account is more convenient.

Taxes on Google invoices

19% VAT. If the advertiser hasn’t provided tax information, Google adds 19% VAT to invoices.
No withholding. Google chose to pay a 3% tax on gross revenue from Colombian customers under the significant economic presence rules — with no withholding by customers. According to Google’s help center, invoices from January 2024 shouldn’t be subject to withholding.

Check that the tax information in your payments profile is correct — it determines how Google charges tax.

How to pay Google directly

Google accepts bank cards, and other methods depend on country, currency and payment settings. The payment options tool in Google’s help center shows the current list for your account. Keep in mind that some methods work only with the country’s official currency.

Account currency

Currency is set permanently at creation. The local currency is convenient for local payment methods. If your budget is in dollars or you advertise in several Latin American countries, accounts in USD are easier — one per market, in one MCC structure.

When an agency account is more convenient

You advertise in Colombia and neighboring countries and want one balance and one structure.
You need to pay in dollars, by bank transfer against an invoice or in USDT.
The company card declines Google charges on peak days.
Finance needs a contract and an invoice.

In an agency account Google bills the agency, and you top up your balance with the agency. The tax consequences of paying abroad depend on Colombian law — check them with your accountant.

How to start with Gads

Submit a request: client type, budget, what you advertise, Telegram or WhatsApp.
We confirm that the GEOs and currency you need are available before you pay.
Review takes up to an hour after sign-up, then accounts are issued instantly.
Top up by bank transfer or in USDT and split the balance across accounts in the dashboard.

The price is only a percentage of actual ad spend: 3% on the first $50,000 a month, 2% on the part up to $150,000 and 1% above. Details on the pricing page.

Sources

Questions

How much VAT does Google add in Colombia?

19%, if the advertiser hasn’t provided tax information.

Do I need to withhold tax on payments to Google?

According to Google’s help center, no: Google pays a 3% tax under the significant economic presence rules, and invoices from January 2024 shouldn’t be subject to withholding.

Does Gads work with advertisers from Colombia?

Yes. We confirm that the GEOs and currency you need are available before you pay.

Gads.agency editorial teamArticles are written by the Gads platform team, based on Google’s Help Center and our experience with clients.

Google Ads in Colombia: taxes, payment and agency accounts