Colombian government presents tax reform that taxes online gambling
The Colombian Government, led by President Gustavo Petro, submitted on September 1 a new tax reform bill called the Financing Law, aiming to raise approximately COP 26 trillion (more than USD 6.4 billion) through modifications to the tax statute. Among the most relevant measures for the gaming industry is the intention to permanently maintain the 19% VAT on online betting, a tax that until now had been applied temporarily due to the crisis that occurred at the beginning of 2025 in the Catatumbo region.
The initiative was presented to the General Secretariat of the House of Representatives by the Minister of Finance and Public Credit, Germán Ávila Plazas, who explained that the proposal seeks to finance the General Budget of the Nation (PGN) for 2026. "What we want is for this Financing Law to be discussed simultaneously with the PGN proposal, that is, we have fulfilled the commitments we have made with the Congress of the Republic," Ávila stated during the presentation. The bill introduces new rules for charging VAT on games of chance, with the exception of lotteries.
In the case of online gaming, the Government seeks for the 19% VAT to become a permanent tax, allowing these funds to finance the national budget. For this concept, Petro’s administration expects to collect COP 1.6 trillion, equivalent to more than USD 398 million. According to the submitted document, the sales tax on games of chance "will be charged at the moment the bet is placed, the issuance of the document, form, ticket, or instrument that grants the right to participate in a game." The party responsible for paying the tax will always be the game operator, even if operating from abroad.
The base for calculating the tax will vary according to the type of game. For slot machines, it will be 20 Tax Value Units (UVT) per month; for casino gaming tables, 290 UVT monthly; for slot machines in venues where the main business is not gambling, 10 UVT per month; for bingo, 3 UVT per available seat; and for other localized games, 10 UVT monthly.
In the case of online bets, "the taxable base of the tax for games of chance operated exclusively online will be the value of the deposit, understood as the cash payment or transfers of money or crypto-assets made by each betting user to the operator of games of chance operated exclusively online, to be credited to their user account and obtain the right to bet." The applied rate will be the current general VAT rate, and when there is no physical document such as a ticket or slip, the operator must issue an invoice or equivalent document. Additionally, it was clarified that the value of the tax is not part of the bet itself and that it may be offset against other taxes, according to established rules.
The Financing Law bill also includes adjustments to VAT for hybrid vehicles, alcoholic beverages, non-resident lodging, and online gambling, aiming to strengthen public finances and expand State revenues. Sector reactions The Colombian Federation of Games of Chance Entrepreneurs (Fecoljuegos) expressed its "concern" about the National Government’s intention to permanently maintain the 19% tax on deposits made on online betting platforms, arguing that this tax is based on a fictitious base and not on a real business variable.
For now, Congress will be responsible for studying the bill in a politically turbulent context. It is worth remembering that the Financing Law presented by the Government in 2024, which also sought to tax games of chance and had a collection target of COP 12 trillion, was rejected by Congress.
Tags: Colombia, betting, Financing Law, taxes