Colombia Ratifies VAT on Gambling and Sports Betting
Brazil – May 29, 2025 – www.zonadeazar.com Despite hopes that President Gustavo Petro’s decree introducing new taxes—such as Value Added Tax (VAT) on gambling, betting, and coal—would be modified, the measure has been ratified by Colombia’s autonomous Public Ministry, according to a report from SBC Noticias.
Colombia, Brazil’s neighboring country—along with Peru—can serve as a learning reference for ongoing discussions within Brazil’s Federal Revenue Service regarding the taxation of the betting market.
As reported this week, Gregorio Eljach, current president of the Procuraduría General de la Nación (Attorney General’s Office), requested the Constitutional Court to uphold the decree that imposes a new 19% VAT on each player participating in an online gambling or sports betting offer from a licensed official operator.
However, the Public Ministry emphasized that the decree is valid only if the funds collected are allocated to Catatumbo, a region currently in a state of emergency due to armed conflict involving guerrilla groups. The decree was validated precisely because of this situation, which allowed the president to seek new forms of tax revenue.
“The measures adopted in Decree 175 of 2025 do not grant differentiated treatment nor contain discriminatory criteria based on race, language, religion, national or family origin, or political or philosophical opinion,” the Attorney General’s Office stated, thereby authorizing the decree.
“This is intended to finance the strengthening of the public forces, provide humanitarian aid, guarantee the rights and fundamental guarantees of the civilian population, and fund these specific goals,” Eljach emphasized.
He concluded:
“The Attorney General’s Office believes that the decree does not restrict fundamental rights or other constitutional provisions requiring control through proportionality tests. The rule is proportional, as it adopts immediately enforceable taxes with already established payment and collection mechanisms.”
💬 About the VAT on Gambling in Colombia
According to Fecoljuegos, the association representing Colombia’s leading gambling industry figures, the sector experienced a 30% drop in the first month following the implementation of the tax. This was reported by the entity’s president, Evert Montero Cárdenas, who stated that players are turning to illegal websites to avoid the tax, thus reducing gross gaming revenue (GGR).
Based on Fecoljuegos’ estimates, players used to spend between COP 150,000 and 250,000 (approximately BRL 250 to 340) monthly on their betting accounts, but this amount has been halved since the tax came into force.
Even so, Montero Cárdenas noted that many operators have begun offering bonuses, promotions, and even absorbing the VAT costs in player transactions, although that still hasn’t been enough.
Editó: @_fonta www.zonadeazar.com