Colombia Proposes 19% VAT on Online Gambling Deposits

Colombia’s government has put forward a proposal to introduce a 19% value-added tax (VAT) on deposits made into online gambling accounts. The measure forms part of a wider tax reform package submitted to Congress and has yet to receive approval.

Under Article 41 of the proposed Economic Rescue Law, gambling operators would be liable for VAT on eligible deposits. The obligation would cover both domestic and foreign operators when customers access their services from Colombia.

The proposed tax would apply to funds and crypto-assets transferred into online gambling accounts to obtain the ability to place bets. A 19% rate would be applied, with the taxable amount determined by dividing the deposit value by 1.19.

The reform also outlines higher fixed taxable charges for several forms of land-based gambling.

For casino operations, the proposed charge per slot machine would double from 20 to 40 tax units, while the amount for each gaming table would rise from 290 to 580 units. The per-person bingo fee would increase from three to six units. Slot machines located in venues where gambling is not a core business would face a higher charge of 20 units, up from 10.

The government is also seeking to raise the tax rate on certain lotteries, raffles and bets from 20% to 30%. In addition, the National Directorate of Taxes and Customs (DIAN) would be authorised to block gambling websites in cases where technical monitoring requirements are not followed.

The Ministry of Finance estimates that the proposed VAT on online gambling could generate approximately €560.22m in 2027. For the 2028–2030 period, projected annual gambling tax revenues are expected to average around €633.05m. These figures remain conditional on the legislation being approved and implemented.

According to the government, the changes are intended to reduce differences in the tax treatment of online and land-based gambling.

The proposals must now pass through legislative debate in Congress before any of the measures can enter into force.