📢 Colombia🇨🇴: Government proposes introducing a fixed 19% VAT on online gambling

📢 Colombia🇨🇴: Government proposes introducing a fixed 19% VAT on online gambling

The government of President Gustavo Petro has introduced a proposal to impose a 19% Value Added Tax (VAT) on online gambling as part of a broader tax reform aimed at raising USD 526.5 million in additional revenue next year. According to official estimates, the online sports betting and casino sector would account for approximately 7.8% of the projected tax collection.

Colombia's regulated online gambling market has been operating under a legal framework since 2016.

🔹 What does the proposal include?

👉 The reform would align the tax treatment of online gambling with that of land-based casinos and betting shops by removing the exemption currently established under Article 420 of Colombia's Tax Code.

👉 The 19% VAT would apply to both licensed Colombian operators and foreign platforms. Operators would be responsible for calculating, reporting, and remitting the tax to the National Tax and Customs Directorate (DIAN).

🔹 Background

👉 The Government previously attempted to introduce the same 19% VAT through a presidential decree issued in January last year. However, the Constitutional Court struck down the measure after invalidating the economic and social state of emergency that served as its legal basis.

👉 As a result, the online gambling tax was also suspended, and the amounts collected up to that point were refunded to operators.

👉 Later, in July 2025, the Government proposed a progressive tax model under which companies with higher revenues would be subject to higher tax rates. That proposal ultimately failed to advance as well.

👉 In recent years, the VAT tax base has been the subject of several proposals, including player deposits, the value of each wager, and Gross Gaming Revenue (GGR), creating ongoing regulatory uncertainty for the industry.

🔹 Context

👉 As of June last year, gross revenue from online betting had increased by 20%. Colombia's regulated market currently includes 15 licensed online gambling operators, including BetPlay, Wplay, Betsson, Rushbet, Codere, Rivalo, Bwin, Betano, Stake, and Sportium.

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