Colombia Proposes 19% VAT on Online Gambling Deposits
Colombia.- 3 November 2026 | www.zonadeazar.com The Colombian Government, through the Ministry of Finance and Public Credit, has submitted a bill to Congress proposing changes to the taxation of gambling and online betting.
The initiative, known as the Economic Recovery Law, proposes applying 19% Value Added Tax (VAT) to gambling conducted exclusively online, using customer deposits as the basis for calculating the tax.
The bill also establishes new taxable bases for land-based casinos, slot machines and bingo venues.
Government Introduces New Tax Reform
The Ministry of Finance announced the submission of the bill on 29 October 2026, as part of a strategy to strengthen public finances.
The proposal includes amendments to several provisions of Colombia’s Tax Code.
Specifically, Article 41 seeks to amend Article 420(e), which governs the application of VAT to gambling activities.
The initiative covers the circulation, sale and operation of gambling products, while expressly excluding lotteries.
Online Gambling Would Face 19% VAT
One of the principal changes concerns online betting and casino platforms.
The bill proposes a 19% VAT on gambling conducted exclusively over the internet, calculated using funds deposited into customers’ gaming accounts.
The taxable base would include deposits made to obtain the right to participate in gambling activities.
The provision covers different payment methods, including cash, bank transfers and cryptoassets.
If approved, the measure would change the tax treatment of these operations and require adjustments to operators’ financial and accounting systems.
Customer Deposits Would Determine the Taxable Base
The proposal introduces a specific mechanism for calculating VAT on online gambling.
Rather than applying the tax directly to operators’ gaming revenue, the framework would use funds deposited into customer accounts as its reference.
Under the proposed calculation, the taxable base would be determined by dividing the deposit amount by 1.19.
For example, on a deposit of COP119,000, the taxable base would be COP100,000, with VAT amounting to COP19,000.
This distinction is important: the proposal does not simply add a further 19% to the deposit, but calculates VAT according to the taxable base established in the bill.
Casinos and Slot Machines Face Tax Changes
The proposed legislation also establishes new monthly taxable bases for different land-based gambling activities.
The principal figures are:
- Slot machines: 40 Tax Value Units (UVT) per machine.
- Casino tables: 580 UVT per table.
- Slot machines in establishments with another principal business activity: 20 UVT per machine.
- Bingo: 6 UVT per seat.
- Other land-based gambling activities: 20 UVT, according to the categories established under Law 643 of 2001.
These figures represent taxable bases expressed in UVT, rather than the final tax amounts payable by operators.
The objective is to establish differentiated calculations according to each gambling activity and its operational characteristics.
Lotteries Would Remain Exempt
The bill maintains a specific VAT exception for lotteries.
Although it proposes taxing the circulation, sale and operation of different gambling products, lotteries are expressly excluded.
The distinction reflects the specific tax treatment of lotteries within Colombia’s existing framework.
Consequently, the Government is proposing changes for casinos, betting and digital gambling without necessarily applying identical conditions across every segment.
Tax Would Apply to Customers Based in Colombia
Another important element is the territorial scope of the proposal.
The tax would apply when the customer has tax residence, domicile, a permanent establishment or a place of economic activity in Colombia.
This provision defines the intended scope of taxation for digital gambling transactions involving customers connected to the country.
It is particularly relevant to online gambling platforms, which may provide services through technological infrastructure located outside Colombia.
Industry to Assess Economic Implications
The proposed changes could affect operating costs, deposit management and the profitability of licensed gambling businesses.
For digital platforms, calculating VAT on deposited funds differs from taxes applied to gross or net gaming revenue.
The framework could also require changes to payment processing, accounting reconciliation and tax compliance procedures.
However, the ultimate impact will depend on the legislation approved by Congress and its implementation requirements.
At present, the measure remains a legislative proposal rather than a new tax obligation already in force under this bill.
Next Steps: Congressional Debate
The Economic Recovery Law must proceed through the relevant legislative process.
During its consideration, lawmakers may debate, amend or reject the gambling-related provisions.
The future of Article 41 will be particularly important in determining the VAT treatment of deposits made through online gambling platforms.
By proposing 19% VAT on digital gambling and revised taxable bases for casinos, slot machines and bingo, Colombia has opened a new debate about gambling industry taxation.
Any implementation of the proposed changes will depend on legislative approval.
Edited by: @fonta
