Comparative analysis of the principles of equity, efficiency and tax progressivity in the composition and collection of the value added tax in Colombia and Chile

Abstract

The Political Constitution of 1991 establishes a series of principles that should govern the Colombian tax system, in order to protect the taxpaying citizen and to ensure to the Nation these necessary resources for the general budget. That is why taxes such as the Value Added Tax (VAT) must respect these principles. The characterization presented generates a comparison on the provisions established by the tax principles in contrast to the legal framework of VAT since its establishment with Decree 3328 of 1963, until the Tax Reform of 2012. Finally, a comparison is presented on the application of the tax principles in the Colombian VAT versus its Chilean equivalent, in order to determine its applications, and finally generating recommendations.