Colombia Considers 19% VAT on Online Gambling Deposits in New Tax Reform

Colombia's government and Congress have begun negotiations over a tax reform that would introduce a 19% value-added tax on online gambling deposits, double certain tax bases for land-based gaming and increase taxation of lottery and betting prizes.

Colombia is considering significant changes to gambling taxation as lawmakers examine Bill No. 477/2026C, known as the Economic Rescue Bill.

The proposal, submitted by Finance Minister Miguel Gómez Martínez on October 29, aims to strengthen public finances through additional revenue measures and spending adjustments.

Technical discussions began on November 10, following an agreement between the government and congressional economic committees.

Article 41 would remove the VAT exemption currently applicable to games operated exclusively online, introducing the standard 19% rate.

Under the proposed calculation, the taxable amount would be based on player deposits, including payments made through cash, bank transfers and cryptoassets.

For example, a deposit of COP119,000 would include COP19,000 in VAT. The gambling operator would be responsible for the tax, including when operating from abroad and serving qualifying Colombian customers.

The bill also proposes doubling the monthly taxable bases for several land-based gambling activities.

For slot machines, the base would rise from 20 to 40 tax value units (UVT), while casino tables would increase from 290 to 580 UVT. Bingo would rise from three to six UVT per seat.

Separately, Article 52 proposes increasing the tax on certain gambling and lottery prizes from 20% to 30%.

Industry association Fecoljuegos has expressed concern about the proposals and is preparing an alternative taxation framework that recognises differences between online and land-based businesses.

Congress is expected to begin joint committee debates in late November, with the government seeking approval before December 16.

The measures have not been enacted. Their eventual adoption could significantly affect operators' pricing models, payment processing and investment decisions across Colombia's gambling industry.