Colombia Opens Talks on 19% VAT for Online Gambling
Colombia – 13 November 2026 – www.zonadeazar.com The Colombian Government and Congress have begun technical discussions on a tax reform proposal that would introduce 19% VAT on deposits made to online betting and casino platforms.
The measure forms part of Bill 477/2026C, known as the Economic Rescue Bill, submitted by the Ministry of Finance on 29 October.
Negotiations began on 10 November, with lawmakers seeking an agreement before 16 December, the deadline for securing approval during the current legislative session.
Congress Begins Technical Negotiations
The working groups were agreed during a meeting held in Barranquilla on 7 November, involving government representatives and members of Congress’s economic committees.
The proposal was submitted by Finance Minister Miguel Gómez Martínez, aiming to stabilise public finances through additional taxation and spending adjustments.
The bill was filed with an urgency message, allowing the economic committees of both parliamentary chambers to debate the legislation jointly.
The first debate is expected during the final week of November.
How the Proposed 19% VAT Would Work
Article 41 would remove the VAT exclusion currently applicable to gambling activities operated exclusively online.
The tax would be calculated on customer deposits, including bank transfers, cash payments and cryptoassets.
The taxable base would be determined by dividing the deposit by 1.19.
For example, a COP119,000 deposit would include COP19,000 in VAT.
Operators would be responsible for paying the tax, including companies based outside Colombia when their customers have the relevant tax connections to the country.
Higher Taxes Also Proposed for Land-Based Gambling
The reform would also affect traditional gambling establishments.
Article 41 proposes doubling the monthly taxable bases applicable to several land-based activities:
- Slot machines: from 20 to 40 tax value units (UVT).
- Casino tables: from 290 to 580 UVT.
- Bingo: from three to six UVT per seat.
Lotteries would remain exempt from VAT.
These changes would increase the tax obligations of licensed casinos and gaming venues.
Prize Tax Would Increase from 20% to 30%
Another important provision appears in Article 52, which proposes increasing the occasional gains tax on prizes from lotteries, raffles and betting.
The rate would rise from 20% to 30%.
This change would affect the taxation of certain prizes received by gambling customers.
However, both the proposed prize tax increase and the 19% VAT remain part of draft legislation that has not yet been approved.
Fecoljuegos Prepares an Alternative Proposal
The Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has announced that it is preparing an alternative tax proposal for the Ministry of Finance and Congress.
The organisation represents manufacturers, suppliers and operators of casinos, bingo halls and online gambling platforms.
Its members include Betsson Group, Codere, Wplay and Betano.
Federation President Evert Montero stated that the industry remains willing to contribute to strengthening public finances.
However, he explained that online and land-based gambling businesses have different economic structures and face obligations that should be considered when designing additional taxes.
The association also emphasised the importance of protecting employment, investment and the funding the gambling industry contributes to the healthcare system.
Previous Online Gambling Tax Measures
Colombia previously introduced 19% VAT on online gambling deposits through an emergency decree in February 2025.
The tax expired at the end of that year after a Senate committee rejected legislation intended to make it permanent.
Subsequently, Decree 1474 of December 2025 reintroduced 19% VAT, this time on gross gaming revenue (GGR).
However, the Constitutional Court suspended the measure in January and struck it down in April 2026.
A separate 16% consumption tax on online GGR, introduced through an emergency decree in March 2026, remains in force until 31 December.
That measure is also awaiting judicial review.
Next Steps and Industry Impact
On 10 November, Senate committees appointed rapporteurs for the first legislative debate:
- David Barguil, of the Conservative Party, representing the Third Committee.
- Carlos Mario Farelo, of Cambio Radical, representing the Fourth Committee.
The joint committees are expected to examine the legislation during the final week of November, with the Government seeking approval before 16 December 2026.
For operators, the main challenge will be assessing how the proposed deposit-based taxation could affect platform profitability and business sustainability.
Colombia is advancing discussions on a fiscal reform that could introduce 19% VAT on online gambling deposits and increase the tax on prizes to 30%, while industry representatives prepare alternatives intended to preserve the competitiveness of the regulated market.
Editó: @fonta
