Colombia proposes 19% VAT on online gambling deposits under new tax bill.
Colombia’s government is proposing a 19% value-added tax (VAT) on online gambling deposits as part of a wider tax reform aimed at increasing public revenue.
The Economic Rescue Law bill, submitted to Congress on 29 October 2026, also proposes doubling the taxable base for casino slot machines, gaming tables and bingo seats.
It would increase the tax on lottery and betting winnings from 20% to 30% and empower Colombia’s tax authority, DIAN, to block non-compliant offshore gambling websites.
The Ministry of Finance estimates the proposed gambling VAT could generate COP 2 trillion in 2027, with annual revenue averaging COP 2.26 trillion between 2028 and 2030.
Colombia gambling VAT: Key proposed changes
Article 41 of the bill amends Article 420 of Colombia’s Tax Statute, removing the VAT exemption for online gambling while maintaining the exemption for lotteries.
| Gambling category | Current rule | Proposed rule |
|---|---|---|
| Online gambling | VAT exempt | 19% on deposits |
| Casino slots | 20 UVT | 40 UVT |
| Gaming tables | 290 UVT | 580 UVT |
| Bingo seats | 3 UVT | 6 UVT |
| Other slot machines | 10 UVT | 20 UVT |
| Betting and lottery winnings | 20% | 30% |
Source: Colombia’s Ministry of Finance and DIAN. UVT is Colombia’s annual tax value unit.
How the 19% online gambling VAT would work
The proposed VAT would apply to money, bank transfers and cryptocurrency deposited by Colombian players into online gambling accounts.
The taxable amount would be calculated by dividing the deposit by 1.19. For example, a COP 100,000 deposit would include COP 15,966 in VAT.
Operators, including those based abroad, would be responsible for collecting and declaring the tax when serving qualifying Colombian players.
The measure would cover authorised platforms where both betting and prize payments take place online. Lotteries and games dependent on physical draws would remain exempt.
Higher taxes for land-based casinos
The bill would double the monthly taxable base for slot machines, gaming tables and bingo seats.
Based on the 2026 UVT of COP 52,374, the taxable base for a casino slot machine would increase from approximately COP 1.05 million to COP 2.09 million monthly. Gaming tables would rise from COP 15.19 million to COP 30.30 million, while bingo seats would increase from COP 157,122 to COP 314,244.
The actual VAT payable would be calculated at the applicable 19% rate.
The government says the changes aim to reduce tax differences between online and land-based gambling.
Why Colombia wants higher gambling taxes
The Ministry of Finance says exploitation rights paid by online gambling operators increased by more than 100% in nominal terms up to September 2026 compared with the same period in 2025.
This growth continued despite previous tax measures introduced under Decrees 175 of 2025 and 240 of 2026.
The government also cites gambling demand elasticity estimates and studies linking online betting to gambling-related harm.
The proposed VAT would be charged in addition to existing exploitation rights paid under Colombia’s state gambling monopoly, which supports health funding.
DIAN could block non-compliant gambling websites
Article 93 would give DIAN authority to order internet service providers to block access to gambling websites operated by companies that fail to meet technical control requirements.
Read Also : Colombia Resumes 16% Tax on Online Gambling Deposits at Reduced Rate
The measure would strengthen enforcement against unauthorised offshore operators, following procedures established under Article 657 of Colombia’s Tax Statute.
Fecoljuegos calls for tax review
The Colombian Federation of Gaming Entrepreneurs (Fecoljuegos) is preparing an alternative tax proposal for the government and Congress.
Its president, Evert Montero, wants authorities to consider the different operating costs of online and land-based gambling businesses.
He acknowledged the industry’s responsibility to support public finances but called for a technical assessment of the proposed changes and their potential impact on investment, businesses and employment.
“We understand the need to contribute to the stability of public finances and we remain willing to contribute.”
Evert Montero, President of Fecoljuegos (translated from Spanish)
FAQ: Colombia’s proposed gambling taxes
Has the 19% gambling VAT been approved?
No. The proposal remains part of the Economic Rescue Law bill and must pass through both chambers of Congress before becoming law.
Who would pay the online gambling VAT?
Operators would collect and declare the tax, including foreign-based companies serving qualifying Colombian players.
Would lotteries be taxed?
No. Lotteries and games dependent on physical draws would remain exempt from the proposed deposit-based VAT.
Would the VAT replace Coljuegos exploitation rights?
No. The new VAT would be additional to existing exploitation rights, which support Colombia’s health system.
How would gambling winnings be taxed?
The bill proposes increasing the tax on lottery, raffle and betting winnings from 20% to 30%.
Could DIAN block offshore gambling websites?
Yes. If approved, the bill would allow DIAN to order internet providers to block non-compliant gambling websites.
What happens next?
Congress will now consider the Economic Rescue Law bill, with the ordinary legislative session scheduled to end on 16 December 2026.
If approved, the proposals would significantly change Colombia’s gambling tax framework, increasing costs for online operators and based gambling businesses.
