Colombia has amended tax rules for online gambling so that value added tax (VAT) is applied to gross gaming revenue instead of deposits.
Under the previous rules introduced in February 2025 as an emergency temporary measure, VAT was charged on player deposits at a rate of 19 per cent, making the country’s licensed online gambling operations unviable.
The deposit tax was introduced by President Gustavo Petro by decree after declaring a state of emergency in response to violence near the border between Colombia and Venezuela.
Colombia’s gambling industry association, Fecoljuegos, welcomed the switch from a tax on deposits to a 19 per cent tax on online gross gaming revenue, stating that the change finally recognises the real mathematics of the industry.
“This is a significant step forward. The sector is transitioning from a deeply disproportionate system, where the tax burden could exceed 70 per cent of actual revenue, to a scenario with a tax burden of approximately 34 per cent on gross revenue, comprised of 15 per cent in exploitation rights and 19 per cent VAT, not including other taxes such as income tax,” said Fecoljuegos. “However, this figure still represents one of the highest burdens globally for this industry, well above international averages, which poses new challenges to the competitiveness of the legal sector.
“This cannot be the end point, but rather a starting point for continued dialogue with the authorities toward a sustainable long-term model,” the association added. “This adjustment allows Colombia to move beyond a clearly unviable situation and opens a minimal, but necessary, margin for the operation of the legal industry.”