Colombia Cuts EV VAT to 5%: 20,000-Unit Quota Opens

Colombia's cut of EV VAT from 19% to 5% means this expensive South American market is opening up. It applies since 27 September, with a 20,000-unit annual quota at a 5% tariff. Locally assembled EVs pay zero duty, while petrol duty rose from 35% to 40%. Quota goes first come, first served, and that decides who books the discount.

Demand moved before the rules did. EV sales hit 29,347 units in the first seven months of 2026, up 231%. Two decrees set the frame: 0595 of 2026 created the quota, 1432 of 2025 lifted petrol duty to 40% on 24 December. One opens the gate, the other adds cost, so the mix shifts on its own.

Do the arithmetic. Fourteen points separate 19% and 5%, applied to CIF plus duty, often a full container of freight on one mid-trim car. The quota spreads 20,000 units over twelve months, under 1,700 a month, while sales already ran above 4,100 a month. That gap is the number to watch this season.

The real choice is CBU or CKD. A built-up unit needs quota and clears at 5%; a knocked-down kit enters at zero duty but carries assembly, welding and testing costs. Under 300 units a month, CBU stays lighter. Past ten thousand a year, a Colombian line pays back in about two years, and only CKD survives the quota running dry.

Be specific about paperwork: ask for the certificate of origin and the battery test report, get written confirmation of the DIAN rate, then check the remaining quota. Put a price-adjustment clause in the contract for a refused quota. Send a trim list and the landed cost can be rebuilt line by line before any volume is signed.

What certifications are required to import used cars from China?
Requirements vary by destination (e.g. EAEU needs SBKTS/OTTC, GCC for the Middle East). EZ Auto handles compliant documents and certification per the destination customs, confirming clearance before shipment to avoid port hold-ups.

What recent policy changes affect Chinese vehicle exports?
EV subsidies are phasing out while export licensing and shipping capacity fluctuate. EZ Auto tracks destination tariffs and certification changes and updates them in the News section for procurement decisions.

Can an individual buy a car directly from China for export?
Possible, but with document and customs hurdles. Most buyers order through a licensed exporter like EZ Auto, which handles the contract, export declaration and destination paperwork; you only handle pickup and local registration.

What export documents are needed for used cars?
Core documents include the commercial invoice, packing list, export customs declaration, bill of lading and the destination's import clearance papers. EZ Auto prepares the full set before shipment to ensure smooth clearance abroad and avoid demurrage.

Do destination countries limit the age of imported vehicles?
New cars are mostly unrestricted; used cars often face an age cap (e.g. some Middle East and Africa markets require within 5-8 years). EZ Auto checks the destination's age rule before shipping and screens out non-compliant units to avoid rejection at port.

This article is published by EZ Auto. EZ Auto (Cheyixing Automobile Import & Export) specializes in exporting Chinese vehicles — new, used and parts — serving Latin America, Central Asia & CIS, Africa, the Middle East and the EU, with order-based sourcing, inspection with photo report, export documentation and ocean freight in one place.